Corre Energy US Development Company LLC, a North American subsidiary of Netherlands-based Corre Energy B.V., has entered into an exclusive agreement to acquire a 280 MW / 4.2 GWh energy storage project from Contour Energy, a Texas-based energy storage infrastructure developer. The buyout transaction is expected to close before the end of this year.
Located in the West Texas region of ERCOT, the utility-scale storage project will be capable of continuously discharging 280 MW of electrical power for up to 15 hours, equating to 4.2 GWh of fully dispatchable electric energy storage capacity. The venture is targeted to achieve financial investment decision (FID) stage in 2025 ahead of full commercial operation.
Technology for the project is based on compressed air energy storage (CAES), a fully commercial technology that can use clean and low-cost renewable energy to compress air into underground salt caverns when the demand for electricity is low and wholesale electricity prices are cheap. When wholesale electricity demand and prices escalate, electricity is then released to the grid, enhancing its stability, reliability and security.
“We’ve reached a pivotal moment in the earth’s climate crisis. Now is the time to deliver impact and invest in long-duration energy storage,” says Keith McGrane, CEO of Corre Energy, B.V. “CAES is a proven storage technology that can time shift electricity on a bulk basis for very long periods at a fraction of the cost of other commercial energy storage technologies.”
Corre Energy US Development Company LLC was established at the beginning of 2023 to acquire early-stage projects and build others on a greenfield basis. Highly favorable government policies – notably the U.S. Inflation Reduction Act and similar financial stimulus in Canada – have created unique opportunities to expand Corre Energy B.V.’s project portfolio.