ILI Group Announces New 1.5GW Pumped Storage Hydro Project
The title of this post is the same as that of this article on Insider.
This is the body of the article.
Intelligent Land Investments Group (ILI) has commenced the initial planning phase for its new 1.5 GigaWatt (GW) pumped storage hydro (PSH) project, Balliemeanoch, at Loch Awe in Argyll & Bute.
This is ILI’s third and largest PSH project. Its other PSH projects include ‘Red John’ at Loch Ness, which was awarded planning consent from Scottish Ministers in June Last year, and ‘Corrievarkie’ at Loch Ericht for which they aim to submit a Section 36 planning application in August.
The new project would be able to supply 1.5GW of power for up to 30 hours, enough to power 4.5 million homes.
The project will create a new head pond in the hills above Loch Awe capable of holding 58 million cubic metres of water when full and it is estimated the project will offset more than 200 million tonnes of CO2 emissions over its lifetime.
I would assume that this will be a privately-financed project and at 45 GWh it will be one of the largest pumped storage systems in the world.
But it must show that if it is privately-financed that the big boys in infrastructure finance, see pumped storage as a safe place to put insurance and pension funds to earn a worthwhile return.
- No-one’s going to steal one of these systems.
- They are a job-creating asset when built.
- Hydro-electric power seems very safe, when well-built.
- You don’t see media reports of schemes like Cruachan, Electric Mountain and Foyers breaking down.
In World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, I talked about Aviva’s funding for wind farms. If Aviva wukk fund those, surely they’ll fund schemes like this, as it could be argued that they make wind farms a better investment and more valuable, as they won’t have to shut down so often, when there’s too much power.
SSE Renewables Launches 1.5GW Coire Glas Construction Tender
The title of this post, is the same as that of this article on renews.biz.
These are the first two paragraphs.
Hydro construction companies have been invited to submit tenders for construction of SSE Renewables’ proposed 1500MW pumped hydro storage scheme at Coire Glas, in Scotland.
Coire Glas, on the shores of Loch Lochy near Invergarry, would be the first large-scale pumped hydro storage scheme to be built in the United Kingdom for more than 30 years.
There appears to be global interest and six shortlisted bidders.
- The ANDRITZ HYDRO and Voith Hydro partnership
- The Bechtel, Acciona Construcción and Webuild S.p.A consortium
- The BAM Nuttall, Eiffage Génie Civil and Marti Tunnel consortium
- The Dragados and BeMo Tunnelling UK consortium
- GE Hydro France
- STRABAG UK
Bidders like these probably wouldn’t bother to get involved unless they knew that funding of the project was in place and it was pretty certain that the project will be constructed.
In World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, I talk about how Aviva are funding the Hornsea wind farm.
I believe, that insurance and pension companies like abrdn, Aviva and L & G could find a way of financing a scheme like Coire Glas.
Conclusion
It looks to me, that it’s almost certain that Scotland will get a 1.5GW/30 GWh pumped-storage system at Coire Glas.
Coire Glas could supply slightly more power than Sizewell B nuclear power station for twenty hours.
Now that’s what I call backup!
Green Hydrogen Companies Are Going Public To The Delight Of Investors
The title of this post, is the same as that of this article on Hydrogen Fuel News.
The article discusses the IPO of the ThyssenKrupp subsidiary; Nucera.
There is more in this article on Reuters, which is entitled Betting On Hydrogen Hype, Thyssenkrupp Eyes $687 mln In IPO Cash.
I have a feeling, that this would not be an investment for widows and orphans, but this widower may know enough to have a small punt at the right price.
Aviva To Eject Company Directors If Climate Goals Are Not Met
The title of this post is the same as that of this article in The Sunday Times.
Increasingly, I am seeing company boards taking decisions, that will cut their company’s carbon footprint.
Only yesterday, I wrote Suppliers Sought For New Bi-Mode Locomotives For TransPennine Express And Great Western Railway, which was about First Group’s moves to decarbonise some of their locomotive-hauled trains.
I have also written about BHP, BP, Fortescue, Go-Ahead and Rio-Tinto taking action to decarbonise.
It does seem that some company boards are following Aviva’s guidance, but then it is in the directors own interest.
Many directors of large companies own shares and in a big public company, these are publicly traded.
I would suspect, that if a company board, do the right thing in terms of decarbonisation, that the share price will rise.
So by following the accepted climate science, they are actually helping themselves.
If they don’t believe that, then aggressive shareholders from Norwich will punish them.
Energy Storage Could Emerge As The Hottest Market Of 2022
The title of this post, is the same as that of this article on Nasdaq.
This is the introductory paragraph.
A few years ago, battery energy storage began drawing attention as what one industry executive at the time called the Holy Grail of renewable energy. In the years since, EVs have stolen the spotlight but now battery storage is back, larger than life and, quite likely, twice as expensive.
I would wholeheartedly agree.
Although, I do think, that some of the major players over the next few years will not be based on lithium-ion batteries.
I have invested in Gravitricity and Rheenergise and would have invested in Highview Power, if I had had the chance.
My stockbroker has also invested some of my pension in energy storage and battery funds.
Cap And Floor Mechanism The ‘Standout Solution’ For Long Duration Storage, KPMG Finds
The title of this post, is the same as that of this article on Current News.
These are the first two paragraphs.
A cap and floor regime would be the most beneficial solution for supporting long duration energy storage, a KPMG report has found.
Commissioned by Drax, the report detailed how there is currently no appropriate investment mechanism for long duration storage. Examining four investment mechanisms – the Contracts for Difference (CfD) scheme, Regulated Asset Value (RAV) model, cap and floor regime and a reformed Capacity Market – it identified cap and floor as the best solution.
Cap and floor has been used successfully in the financing of interconnectors, so perhaps to apply it to long duration energy storage, will lead to greater use of such storage.
Goldman Sachs Invests $250 million In Hydrostor To Advance Compressed Air Energy Storage Projects
The title of this post, is the same as that of this article on pv Magazine.
This is the introductory paragraph.
The investment is planned to support development and construction of Hydrostor’s 1.1GW, 8.7GWh of Advanced Compressed Air Energy Storage projects that are well underway in California and Australia, and help expand Hydrostor’s project development pipeline globally.
It certainly seems that the big beasts of finance are starting to back innovative energy storage.
Catalyst Capital Makes First Move In GBP 300m Battery Storage Strategy
The title of this post, is the same as that of this article on Renewables Now.
This is the first paragraph.
Fund manager Catalyst Capital has acquired a site to build a 100-MW battery in Yorkshire, northern England, in the first of a series of planned deals under a GBP-300-million (USD 406.1m/EUR 358.9m) strategy to develop diversified UK battery energy storage systems (BESS) facilities.
£300 million, says to me that the finance industry, now finds battery storage to be a worthwhile investment.
Skelton Grange Power Station
This Google Map shows the location of the Skelton Grange power station site, where the battery will be developed.
And this second Google Map shows the site in more detail.
Note that there is still a sub-station on the site.
The article states that planning permission was received in 2021 and they hope to have the facility on-line in the first quarter of this year.
That appears quick to me. Is it because the electrical connection already in situ?
It should also be noted, that the battery output of 100 MW is much less than that of the former coal-fired power station in the mid-1980s, which was at last 480 MW.
I also wonder, if the site could host a hydrogen fuelling station for buses.
- It is not far from the centre of Leeds.
- It has a good connection to the National Grid.
- An electrolyser like the one built by ITM Power at Tyseley Energy Park uses 3 MW of electricity to produce around 1.5 tonnes of hydrogen per day.
I also feel that the site could host a wind turbine up to about 10 MW.
Conclusion
Catalyst Capital seems to have made a big entry into the market. They won’t be the last to do this, as the returns are there and the battery storage is needed.
Zopa Co-Founders Speak Out Against Fintech’s Peer-To-Peer Exit
The title of this post, is the same as that of this article on Financial News.
Read it, as it a cautionary tale about what happens to disruptive innovation.
Eventually, the big bad boys make sure you don’t disrupt their easy life.
Zopa has been part of my life for fourteen years and it did me well. Especially in the bad times and when I had a personal crisis.
I wrote Stability in Financial Systems in 2012, where I said this.
I have a strong feeling that Zopa, the peer-to-peer lender, is also a stable system. Other companies of the same type may well be too! but I am not as familiar with them as I am with Zopa.
Unfortunately, the decision makers in Zopa decided to become a bank, broke the stability and crashed the company.
Son of Zopa will arise!
When Will Energy Storage Funds Take The Leap To New Technology?
This article on the Motley Fool is entitled 3 UK Dividend Shares To Buy Yielding 6%.
This is a paragraph from the article.
The first company on my list is the Gore Street Energy Storage Fund (LSE: GSF). With a dividend yield of just over 6%, at the time of writing, I think this company looks incredibly attractive as an income investment. It is also an excellent way for me to build exposure to the green energy industry.
Just as everybody has a fridge in their house to stop food being wasted, electricity networks with a lot of intermittent resources like wind and solar, needs a device to store electricity, so that it isn’t wasted.
Gore Street Energy Storage Fund is being very safe and conservative at the current time, often using batteries from one of Elon Musk’s companies.
You can’t fault that, but they are only barely making a dent in the amount of batteries that will be needed.
If we are generating tens of GW of wind energy, then we need batteries at the GWh level, whereas at the moment a typical battery in Gore Street’s portfolio has only an output of a few megawatts. They don’t state the capacity in MWh.
There is this statement on their web site, about the technology they use.
Although the projects comprising the Seed Portfolio utilise lithium-ion batteries and much of the pipeline of investments identified by the Company are also expected to utilise lithium-ion batteries, the Company is generally agnostic about which technology it utilises in its energy storage projects. The Company does not presently see any energy storage technology which is a viable alternative to lithium-ion batteries. However, there are a number of technologies which are being researched which if successfully commercialised, could prove over time more favourable and the Company will closely monitor such developing technologies.
They say they are agnostic about technology and are looking around, but they are sticking with lithium-ion technology.
That technology works, is safe and gives a good return.
But they are at least thinking about moving to new technology.
In the rail industry, it is common for rail leasing companies to get together with train manufacturers or remanufacturers to develop new trains.
As an example, Eversholt Rail and Alstom formed a partnership to develop a hydrogen-powered train for the UK, which I wrote about in Alstom And Eversholt Rail Sign An Agreement For The UK’s First Ever Brand-New Hydrogen Train Fleet.
Worldwide, there are probably upwards of a dozen very promising energy storage technologies, so I am very surprised that energy storage funds, like Gore Street and Gresham House have not announced any development deals.
Conclusion
Energy storage funds could benefit from using some of the financing methods used by rolling stock leasing companies.
The Anonymous Widower 