Magnum CAES Overview. November 2016

Transcription

1 Magnum CAES Overview November 2016

2 Western Energy Hub: A Foundation for Numerous Significant Businesses Natural Gas Liquids Storage CAES (Compressed Air Energy Storage) Natural Gas Fired Generation Natural Gas Storage Petroleum and Refined Products Storage Other Support Businesses and Businesses that use Available feed-stocks 2

3 Magnum CAES Compressed Air Energy Storage Two operational facilities McIntosh, Alabama (in-service 1991) Huntdorf, Germany (in-service 1978) Comparison of Magnum CAES and McIntosh CAES McIntosh CAES: Compact 110 MW energy storage and peaking facility Created directly above solution mined caverns on a salt dome Salt dome also contains high deliverability gas storage Facility is owned by municipal utility Magnum CAES scalable from 160 MW and can be built out as demand increases similarly situated in proximity to existing utility infrastructure and gas storage The difference between Magnum CAES and McIntosh CAES is the primary application McIntosh CAES designed and operated to move off-peak energy to on-peak Magnum CAES will be used to integrate renewables, improve transmission efficiency, and reduce fossil plant cycling 3

4 Changing Western Electricity Industry Western Energy Imbalance Market Provides CAES Opportunities Western Renewable Energy Zones Magnum s Site Balancing Authorities Potential Expanded ISO 4

5 Electric Industry Changes in the West Energy Imbalance Market expansion Potential of an expanded western independent system operator Increased renewable portfolio standard targets CO 2 reductions and the Clean Power Plan Environmental compliance requirements on coal Increased renewable energy development Lower regional electric consumption growth Distributed energy resources Regulatory changes local, state and federal Western transmission grid operations Societal expectations and demands 5

6 Magnum CAES - Hub of the Wheel of Renewable Opportunity Magnum CAES is perfectly Situated 6

7 Transmission and Energy Storage Gateway South 1,500 MW Zephyr 2,100 3,000 MW & TransWest Express 3,000 MW will enable more renewables in the West 7

8 1-Jan 2-Jan 3-Jan 4-Jan 5-Jan 6-Jan 7-Jan 8-Jan 9-Jan 10-Jan 11-Jan 12-Jan 13-Jan 14-Jan 15-Jan 16-Jan 17-Jan 18-Jan 19-Jan 20-Jan 21-Jan 22-Jan 23-Jan 24-Jan 25-Jan 26-Jan 27-Jan 28-Jan 29-Jan 30-Jan 31-Jan mwh in Transmission 1-Jan 2-Jan 3-Jan 4-Jan 5-Jan 6-Jan 7-Jan 8-Jan 9-Jan 10-Jan 11-Jan 12-Jan 13-Jan 14-Jan 15-Jan 16-Jan 17-Jan 18-Jan 19-Jan 20-Jan 21-Jan 22-Jan 23-Jan 24-Jan 25-Jan 26-Jan 27-Jan 28-Jan 29-Jan 30-Jan 31-Jan mwh Produced by Wind CAES: Transmission Benefits Simulated Simulated Milford Wind Wind Power Power Production Based on State of Utah 10 Minute Wind Data from January Meter Tower Measurements 12:00 AM 1:00 AM 2:00 AM 3:00 AM 4:00 AM 200 5:00 AM 6:00 AM 7:00 AM 8:00 AM 150 9:00 AM 10:00 AM 11:00 AM 12:00 PM 100 1:00 PM 2:00 PM 3:00 PM 50 4:00 PM 5:00 PM 6:00 PM - 7:00 PM 8:00 PM 9:00 PM 10:00 PM Intermittent renewables destroy transmission value Firming and shaping intermittent renewables in the production area optimizes transmission capacity 80% improvement in transmission capacity available for scheduling Intermittent wind energy is captured and released as reliable and dispatchable peak power Simulated Simulated Wind Milford Power Wind Production Power with with CAES CAES Wind Data from January 2006 Shaped Through CAES 6 by 16 Firm Product Freed Transmission Capacity 8

9 Over-generation, An Emerging Challenge System needs flexibility in order to: Reduce curtailment Reduce peak load (or increase available generation to meet peak load) Reduce ramp (or increase available generation to meet ramp requirements) Reduce minimum generation (greater turndown capability or greater Ancillary Services capability with less associated energy) Reduce peak fossil generation (replace with cleaner alternatives) Source: E3 9

10 Magnum CAES Value Opportunities CAES provides an economic solution to Western renewable over generation by reducing potential curtailment because renewable electricity can be stored during periods of over generation and released when large increments of dispatchable generation are required to meet utility load service and reliability requirements CAES supports significant regional renewable energy deployment and integration by providing significant amounts of energy storage at low comparative costs CAES compression and generation functions are independent, so ancillary services are available simultaneously from both functions. This flexibility makes Magnum CAES the ultimate ancillary services machine CAES Reduces CO 2 emission in the west by providing dispatchable generation resources with fewer CO 2 emissions than other natural gas fueled resources Helps western stakeholders meet environmental, reliability and social issues 10

11 Magnum Development: Key Accomplishments Through comprehensive strategic planning and successful execution, management has completed key development activities for a variety of businesses Definition Development Commercialization 2-D seismic acquisition analysis 3-D seismic shoot & analysis Water well Hydrology study Core well Salt analysis & rock mechanics Market analysis and study Land/mineral control of 100% of salt body Water rights acquisition 2x requirement Site power Facility & subsurface engineering & design Environmental studies Federal, state & local permits Construction Engineering and Environmental Compliance Program Operations Health and Safety Program Rail Use Agreement and design Marketing Budgeting Scheduling Preliminary Financial Modeling Magnum NGLs In Service Go to market strategies underway for: Refined petroleum products Natural gas storage Natural gas generation Compressed energy storage Compressed air turbine testing Salt production Other = Complete or Substantially Complete 11

12 Thank You contact Richard Walje Office: ext East Millrock Drive, Suite 330 Holladay, Utah