Iowa Stored Energy Park APPA Engineering and Operations April 16, 2007 Sam Shepard Electricity and Air Storage Enterprises CAPTURING THE POWER OF NATURE.

Iowa Stored Energy Park

APPA Engineering and OperationsApril 16, 2007

Sam ShepardElectricity and Air Storage Enterprises

CAPTURING THE POWER OF NATURE


The Wind blows mightily in Iowa

▪At Night

▪In the northwest quadrant

▪So -- How do we move the wind ?


Presentation Overview

▪Project Summary▪Economics▪Technology▪Support▪Conclusions


An aquifer based storage system Combustion turbine technology

Bio-derived fuel compatible




Three parts to a CAES system

▪Storage▪Generation▪Compression


Storage

▪Two existing CAES plants use mined salt caverns▪ISEP will use an aquifer▪Similar to natural gas storage techniques


Generation- Conventional Combustion Technology

▪Compression– Separate and Replace▪Combustor- similar to existing▪Expander-similar to existing

▪High and low pressure sections


Generation- Fuel

▪Two separate combustors▪High and Low Pressure

▪Investigating use of two fuels▪Natural gas▪Bio-derived fuels


Compression

▪Use existing high efficiency equipment▪Proven track record – Air Separation Industry


So how does CAES work with Wind ?

▪Increases off-peak system load▪Utilizes transmission when line ratings are high▪Provides voltage and frequency regulation

▪During either compression or generation


Funding to Date

▪State of Iowa▪US DOE▪Iowa municipal utilities


Status

▪Assessed all candidate sites in Iowa▪Completed seismic testing on best 2 sites▪Selected best site – west of Des Moines▪Building ownership / off-take portfolio▪Preparing to drill test wells and test fluid flow


Supporters

▪Iowa municipals▪Local residents▪US DOE


Summary

▪Preliminary analysis confirms feasibility▪Supports renewable energy needs▪Adaptation of proven technology▪Meets electric system technical/ market needs


“It’s The Responsible Thing To Do”

Why The Economics Make Sense



Load Duration Curve

0

2

4

6

8

10

12

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%% Hours

Dem

and

M

W


Comparative Cost $/MWh

0

10

20

30

40

50

60

70

80

90

Coal-PC CC SC CAES

Compression

Fuel + VOM

Fixed Costs

$/MWh


Cost Comparisons-Base EconomicsCost Comparisons-Base Economics

0

50

100

150

200

250

10% 15% 20% 25% 30% 35% 40% 45% 50%

Capacity Factor

$/MWh

Coal-PC

Coal -IGCC

CC

SC

CAES


Energy Generation

0

2

4

6

8

10

12

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

% Hours

Diesel

GT

CAES

Wind

Coal 2

Coal 1ISEP

Demand

in

MW


Why ISEP?

▪Cheapest energy 10% < C.F. < 50%

▪Operational flexibility

▪Enhance value of wind energy

▪Protect against high gas prices

▪Protect against carbon tax


Technology

Conventional Combustion Turbine

▪Expander Output 103 MW▪Compressor Load -59 MW

▪Gross CT output 44 MW


CAES Machine

▪Expander Gross Output 103MW▪Air Flow optimization 9MW▪High Pressure expander 22MW

▪CAES Gross Output 134MW


Thermodynamics

▪CAES▪1 kWh out = 0.75 kWh in plus 4400 Btu fuel▪With wind driving compression

▪Total heat rate = 6900Btu/kWh (HHV)▪F Class CT

▪Simple cycle 10000Btu/kWh (HHV)▪Combined cycle 7700Btu/kWh (HHV)


ISEP — A Great Fit For Algona▪Proven source of renewable energy

▪Control costs by owning/investing in generation source

▪Good for the environment

▪Mix of generation sources helps risk mitigation

▪Consumers/owners want us to invest in renewable energy


ISEP — Meeting Waverly’s Renewable Goals

▪Owned wind generation since 1991

▪Want storage from ISEP

▪Renewable goal: 20% by 2020

▪Intermediate capacity needs

▪ISEP helps Waverly meet its goals


Why The Department Of Energy Backs ISEP

▪Increased demand anticipated

▪Federal mandates likely

▪Trends, challenges, and needs point to ISEP


GROWTH IN

ENERGY CONSUM

PTION

ECOLOGICAL CONCE

RN

DIGITIZATION OF SOCIETY TRANSMI

SSION CONGES

TION

RENEWABLE

MANDATES

POWER OUTAGE

S

ELECTRICAL ENERGY STORAGE

INCREASED

CAPACITY

FACTOR

DISPATCHABILITY OF RENEWABLES

HIGH POWER QUALITY

SO

LU

TIO

N

TR

EN

DS

CH

AL

LE

NG

ES

NE

ED

S


“It’s The Responsible Thing To Do”

What Energy Customers Say…



We’ve Done Our Homework

▪Talked to 600 people

▪All lived in Dallas County

▪A strong majority support the idea


Why Dallas County Residents Like ISEP:

▪Helps reduce/control MY household energy costs

▪Uses a resource (wind) not being used enough

▪Could decrease dependency on foreign energy

▪Could decrease dependency on fossil fuels

▪Is a clean and healthy source of energy


ISEP Funding So Far…

Leveraged $800,000 Municipal Funds

Received $3,500,000 Federal Funds



Moving Forward

▪Leaving Research Phase▪Entering Development Phase

Research Development Construction ending 2007 -2009 2009 - 2011


Conclusions

▪ISEP Answers wind’s shortcomings▪Diversifies the portfolio▪Helps meet intermediate capacity needs▪Helps manage coming renewable mandates


For more information:

Kent Holst ISEP Development Director319.239.8968

[email protected] www.isepa.com


Iowa Stored Energy Park APPA Engineering and Operations April 16, 2007 Sam Shepard Electricity and Air Storage Enterprises CAPTURING THE POWER OF NATURE.

Documents

power of nature slide

isep slide

power of nature storage

power of nature compression

generation slide

renewable energy slide

power of nature growth

power of nature funding