Joint Venture Announced to Market and Deploy Next Generation Compressed Air Energy Storage (CAES) Plants
August 26 2008 - 7:30AM
PR Newswire (US)
PSEG to commit business development expertise, operational
excellence experience and financial resources to bring proven
technology to market NEWARK, N.J., Aug. 26 /PRNewswire-FirstCall/
-- PSEG Global LLC and energy storage pioneer Dr. Michael Nakhamkin
today announced they have formed Energy Storage and Power LLC
(ES&P); a joint venture to exclusively market, license, support
the development and supervise project execution of the second
generation of Compressed Air Energy Storage (CAES) technology. CAES
technology stores off-peak energy, in the form of compressed air in
an underground reservoir, and releases this energy during peak
hours. CAES can be used for load management of intermittent
renewable energy resources or as a stand-alone intermediate
generation source for capturing energy arbitrage, capacity payments
and ancillary services. Dr. Nakhamkin led the design and technical
implementation of North America's only CAES plant in McIntosh,
Alabama. Dr. Nakhamkin will be the Chief Technology Officer of the
joint venture. Roy Daniel, who has been with PSEG since 1994 in
various management positions, will be CEO. Daniel has served as
asset manager for PSEG Global's generation in the U.S. and Asia and
structured over $1 billion of worldwide transactions working for
PSEG Global. Energy Storage and Power's patented second generation
CAES technology incorporates lessons learned and operational
experience of the Alabama CAES project. This second generation CAES
technology has numerous features and advantages that position it to
become an important part of the electricity sector: -- Greater
scalability and a lower capital cost per megawatt-hour of power
storage relative to other power storage technologies; -- A rapid
power response rate, which is critical to enhancing grid stability
and compensating for the intermittency of renewable energy
resources such as wind and solar; -- The ability to arbitrage the
difference between off-peak and on-peak power prices, a difference
that has been increasing over time; and -- The use of proven,
multi-source, standard components applied in a novel configuration
resulting in lower capital cost with established processes and
procedures. ES&P will license its technology to customers, as
well as optimize the performance of CAES plants and provide
technical support throughout the CAES project design, development
and construction process. Potential customers of ES&P's CAES
technology include electric utility companies, independent power
producers, wind developers and transmission owners. "Energy Storage
and Power's CAES technology is poised to become an important part
of the dispatch stack that can address the intermittency of
renewables and reduce on-peak power costs," said Stephen Byrd,
president of PSEG Energy Holdings, the parent company of PSEG
Global. "Our company examined the technology for its own use and
decided that the potential was great enough that we wanted a larger
role in helping to make compressed air energy storage a technology
that is broadly embraced by the electricity sector. We believe this
technology is an important component of a broad effort to combat
climate change, an effort that must include increased conservation,
expanded renewable energy and new clean central power." "PSEG has
the expertise and financial resources to bring this technology out
of the development stage and into the deployment stage. We have
learned a lot since building the McIntosh plant in Alabama, and I
believe the time is right technically, environmentally and
economically for a large-scale deployment of ES&P's CAES
technology," said Nakhamkin. "The technology has evolved to the
point where it can be critical to helping this nation meet its
growing energy needs while helping decrease carbon emissions from
the electricity sector." "We see strong market potential for CAES
in the traditional power industry as well as for the growing
renewable energy industry," said Daniel. "Energy storage is the
missing piece of the puzzle for a green, affordable and reliable
electric grid for the 21st century. CAES units can manage wind
output to create a highly valuable firm dispatchable product. Even
independent of wind, it can be a cost-effective intermediate
generation source for energy arbitrage, capacity and ancillary
services. I am very excited to launch this initiative with Dr.
Nakhamkin and look forward to working with him as we grow this
business." "Clearly, compressed air energy storage has significant
potential as a near term, viable, large scale energy storage
technology," said Dr. Arshad Mansoor, the vice president of Power
Delivery and Utilization at the Electric Power Research Institute.
"As we see greater and more widespread integration of intermittent
generation such as wind gain acceptance, storage technologies like
CAES will become even more vital. We look forward to working with
PSEG and other industry players in helping to accelerate the
development and deployment of CAES plant technology with both above
ground and underground reservoirs for the storage of compressed
air, as an essential next step in advancing a cleaner and more
environmentally sound energy future." For more information please
visit http://www.energystorageandpower.com/, email or call
toll-free (866) 941-CAES (2237). Dr. Michael Nakhamkin, PE is a
recognized leader in compressed energy storage for over two
decades. He holds 16 U.S. and worldwide patents and is the author
of research articles in industry trade journals including Combined
Cycle Journal, Power Engineering, and Combustion Turbine World. He
has presented over 80 publications, most of them on CAES
technology, at many industry conferences including POWER-GEN
International, EESAT, ASME Turbo-Expo and Electric Power 2007. Roy
Daniel has more than two decades of experience in energy project
development and power asset operations. He has been with PSEG since
1994 where he developed and oversaw operations of plants in Asia
and the U.S., as well as structured over $1 billion worth of
transactions. He holds a Bachelor of Science degree in Nuclear
Engineering and a Master of Science degree in Industrial
Engineering from North Carolina State University. He also holds a
JD from Suffolk University Law School and completed the Advanced
Management Program at the Wharton School of Business. PSEG Global
is a subsidiary of PSEG Energy Holdings and an indirect subsidiary
of PSEG, Inc. (NYSE:PEG). PSEG is a diversified energy company
based in Newark, New Jersey. Its other main subsidiaries include
PSEG Power, a merchant generation company and PSE&G, an
electric and gas distribution utility in New Jersey. PSEG is an
industry leader in taking concrete steps to combat climate change.
These steps have included a more than $100 million solar loan
program offered at its New Jersey regulated subsidiary (PSE&G)
and a bid to develop a 350 MW wind farm off the shore of Southern
New Jersey by PSEG Global. For more information visit
http://www.pseg.com/. DATASOURCE: PSEG Global CONTACT: Paul
Rosengren, +1-973-430-5911, for PSEG Global Web site:
http://www.pseg.com/ http://www.energystorageandpower.com/
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