Apex Clean Energy, SK Gas and SK D&D have formed a joint venture (JV), SA Grid Solutions, to own energy storage facilities in the U.S., the companies announced in a Jan. 17 press release.
SA Grid Solutions is funded 60% by SK and 40% by Apex. The JV owns Great Kiskadee Storage, a utility-scale battery project under construction in Hidalgo, Texas. Apex will manage the construction and operations of the facility, and any future ones.
“Great Kiskadee represents the first project in this shared vision, with the potential for hundreds more megawatts of energy storage to come,” Ken Young, Apex Clean Energy CEO, said in the press release. “Our collaboration with SK Gas and SK D&D, a first-time partner with shared values, will enable Apex to swiftly accelerate the deployment of our development-stage storage portfolio, comprising more than 13 [gigawatts] across the United States.”
Great Kiskadee is expected to begin commercial operations in 2024 and will generate more than $12.6 million in tax revenue over its lifetime. The project will deliver 100 megawatt/200 megawatt-hours of capacity to the Electric Reliability Council of Texas (ERCOT) grid with a two-hour battery duration. Other projects purchased by the JV will have comparable size and duration.
“We will continue to create new opportunities such as ESS [energy storage system]-based power transactions in the U.S. market and contribute to preoccupying the domestic ESS market, strengthening the competitiveness of the power brokerage business,” said Do Hyun Kim, CEO of SK D&D, in the announcement.
Recommended Reading
Enterprise’s SPOT Deepwater Port Struggles for Customers
2024-04-25 - Years of regulatory delays, a loss of commercial backers and slowing U.S. shale production has Enterprise Products Partners’ Sea Port Oil Terminal and rival projects without secured customers, energy industry executives say.
Enterprise Gains Deepwater Port License for SPOT Offshore Texas
2024-04-09 - Enterprise Products Partners’ Sea Port Oil Terminal is located approximately 30 nautical miles off Brazoria County, Texas, in 115 ft of water and is capable of loading 2 MMbbl/d of crude oil.
Enbridge Fortifies Dominant Role in Corpus Christi Crude Transport
2024-03-20 - Colin Gruending, Enbridge executive vice president and president for liquids pipelines told Hart Energy the company’s holdings in South Texas are akin to a “catcher’s mitt” for Permian and Haynesville production.
Enbridge Announces $500MM Investment in Gulf Coast Facilities
2024-03-06 - Enbridge’s 2024 budget will go primarily towards crude export and storage, advancing plans that see continued growth in power generated by natural gas.
For Sale? Trans Mountain Pipeline Tentatively on the Market
2024-04-22 - Politics and tariffs may delay ownership transfer of the Trans Mountain Pipeline, which the Canadian government spent CA$34 billion to build.