Grid-Scale Energy Storage

About

Storelectric has developed and owns the IPR for an innovative form of compressed air energy storage that has the potential for rapid international rollout which can address the vast market disruption and system risk caused by the mass build-up of renewable energy. Already partnering with PwC and supported by the University of Chester, Storelectric is currently in advanced detailed discussions with Siemens, Balfour Beatty, Alstom and other blue-chip companies, both to finalise the design of and prepare a standardised roll out facility of 500MW. Already under way in the first instance is the preparation to build a 20MW commercial proof of concept facility. Introduction The United Kingdom, in common with most of Europe, is facing a severe energy challenge. Over the last 3 years, the electricity generating capacity margin that provides security of supply in the UK, has fallen from 17% to 4% and is still declining. This has been caused mainly by an ongoing programme of closure of aging base load power stations, including coal and nuclear. More importantly, to reduce greenhouse gas emissions and consequent climate change, political emphasis has been placed on building renewable energy sources of electricity, predominantly wind and solar power. Wind and solar are, by definition, not base load but “peaky”; the power is only available when natural weather conditions allow, not always when the power is needed. This type of power generation is not capable of fast response when there is an urgent need for power to support a surge in demand.  Wind power in particular often produces electricity at night when it is not required and cannot then respond to peak surges in demand.  So the investment in renewables has disrupted the traditional power market, marginalising conventional power stations, but is unable to respond to peak demand. The quickest and most effective solution to this problem is to harness renewable energy when it is available and store it for when it is needed. Energy can be “harvested” when it is available at low demand times and therefore cheaper; then released when the demand and price is higher. Storage can smooth the current demand-supply imbalance of the grid system and is available very quickly to meet a surge in demand Our storage proposal: the storage of compressed air in underground caverns. Renewable energy is utilised at low cost low demand times to operate compressors to fill underground salt caverns with compressed air. Large numbers of salt caverns are available, both in the UK and internationally, and more can be made cheaply. Salt caverns are naturally hermetic and “self-healing” thus providing an effective natural seal. This method has been known about for many years in theory, but until now it has not been possible to convert the compressed air cost effectively. This has now changed, also political emphasis has changed. The need for storage has now become critical. Storelectric has developed the process to convert low cost, clean renewable energy into stored energy capable of rapid response when required at high demand times cost effectively. The process is capable of 63% overall cycle efficiency now which is likely to improve to closer to 70% by the time that the first large scale commercial facility comes on line. The Market Opportunity Electricity storage is poised to be the biggest growth industry of the 21st century The global electricity market is expected to exceed $3.2 trillion per annum by the end of 2015 Storelectric is poised to take first mover advantage, which, with the right financial support can potentially capture a majority share of this rapidly growing market. The Commercialisation Strategy The University of Chester is building the first demonstration and test facility for Storelectric. Capable of generating 0.5 MW, this demonstration facility will be operational within 18 months; this facility will be built at the University’s Thornton Science Park. In parallel with this first step, work will continue to develop the first commercial scale project. This facility will be capable of 20MW for 50 hours following full pressurisation and is planned to be operational within two years. In parallel with both of these, work is continuing to develop the first full scale commercial facility capable of 500MW. It is planned that this will be operational within 4 years. Patents Storelectric have several pending patents to protect the IP. The Potential Consortium Storelectric has brought its technology to a group of companies to develop the technology and costing further to construct a proven prototype and prepare for the installation of a 500MW facility. The companies include: Siemens – who are contributing to the pump and generation design and for the prototype could use off-the-shelf equipment. PwC – financial and strategic adviser to Storelectric, with an equity interest, whose advice covers the negotiation of the joint venture between the companies, development of the prototype, developing the commercial and revenue contracting strategy of the JV, full financing of the 500MW plant, roll-out strategy and exit. Alstom – thermal management technology, involving releasing the heat of compression to the cold of expansion, leading to closed-loop round-trip efficiencies. Civil engineering – Balfour Beatty is currently providing detailed costing for the 500MW plant. Dentons – the world’s 10th largest law firm are supporting Storelectric. 4 universities: Manchester, UCLan, Chester and University College Dublin. Video: https://www.youtube.com/watch?feature=player_embedded&v=m4UgOO_uhug