Ever since Thomas Edison invented the light bulb, people have been searching for ever more effective ways to store electricity during periods of lower demand for later use during periods of higher demand.
Beginning in 1998, Haddington Ventures and its portfolio company, CAES Development Company, began developing a newer method for the bulk storage of electricity. This method, known as compressed air energy storage (CAES), is a cost-effective, commercially-proven and environmentally sound technology used to store energy in the form of high-pressure air. CAES converts relatively abundant electricity available at night from base-load coal and nuclear power plants, or generated by intermittent renewable sources such as solar and wind, into more profitable, flexible and dispatchable energy that can be used the next day to meet rapidly changing daily demand.
You may have seen the recent announcement regarding the sale of Haddington’s Norton Energy Storage Project in Norton, Ohio, to FirstEnergy Corp. Haddington’s principals developed many of the independent high-deliverability natural gas storage facilities in the U.S. and are now leveraging that expertise in the development of CAES projects such as Norton. In fact, Haddington is the first private equity fund manager to have invested in, developed and now exited a compressed air energy storage development.
Haddington is pursuing additional opportunities that involve CAES. Among its current portfolio companies is the Magnum Energy Storage Project, a high-deliverability salt cavern natural gas storage development in Delta, Utah. Magnum also plans to develop air storage caverns for CAES at the same site, as well as caverns for storage of refined products. The Magnum project will be a true “Energy Hub,” the first of its kind.
As renewable energy penetration continues to grow in the U.S., we believe that you will be hearing and writing a great deal more about CAES in the future. Whenever you need information about this important new form of energy storage, please feel free to call upon Haddington Ventures and its portfolio companies as a resource for background and expertise.
For more information, please visit our web site at www.hvllc.com or call John Strom or Dave Marchese at 713.532.7992.
We look forward to hearing from you.