Power Storage

A cost-effective way to store wind energy

Haddington was one of the pioneer investors in Compressed Air Energy Storage (CAES), an environmentally-friendly, cost-effective method of storing large quantities of energy in underground storage caverns in the form of high-pressure air.  CAES offers power producers an effective way to respond to the peaks and valleys in demand for electricity and to supply much needed ancillary services.  It is unique in its ability to efficiently store and redeploy energy on a large scale. The result is more cost-effective energy and a more reliable power grid.  CAES projects can be developed in underground salt dome caverns, depleted oil/gas reservoirs, underground aquifers, or in certain cases, abandoned underground hard rock mines. 

The growth in renewable energy—wind, solar, geothermal and biofuels—continues to accelerate; however, because it is produced by nature, renewable energy generation is inherently variable.  Sometimes the wind doesn’t blow; sometimes the sun doesn’t shine.  And often, the timing of peak demand for energy differs from the timing of peak production. Increased use of these renewable energy sources is increasing fluctuation in demand for gas-fired electricity.

To utilize more of this renewable generation and to manage these fluctuations in demand for gas-fired power, Haddington believes that the need for natural gas storage and transportation capacity will increase significantly along with the need to develop bulk electricity storage infrastructure using CAES.

Haddington’s experience in CAES began in 1999 with CAES Development Company and includes developing the Norton CAES project in northern Ohio, which was sold to First Energy Corp in 2010.  Currently, we are investing in Houston-based Apex CAES, which is developing CAES projects in Texas. Power storage opportunities using CAES mirror the size, timeframe, management needs, and capital structure of greenfield underground storage development.  

To learn more about CAES, go to http://www.apexcaes.com/caes.

Compressed-Air-52-1024x782.jpg A CAES power generation facility uses compressors to inject air into an underground storage cavern, later releasing the compressed air to turn turbines that will generate electricity back onto the power grid.

Note: The companies mentioned on this page represent all active as well as all realized investments in this sector of the market as of August, 2013.  Holdings are subject to change.