FirstEnergy Acquires Rights to Norton Energy Storage Project


— Dec 01, 2009

F
irstEnergy Generation Corp., a subsidiary of FirstEnergy Corp., announced Nov. 23 that it has purchased the rights to develop a compressed-air electric generating plant on a 92-acre site in Norton, Ohio, from CAES Development Co. LLC. The transaction includes rights to a 600-acre underground cavern, formerly operated as a limestone mine, ideal for energy storage technology.

“The compressed-air technology envisioned at this site would essentially operate like a large battery, storing energy at night for use during the day when it is needed,” said Anthony J. Alexander, president and chief executive officer of FirstEnergy. “Because many renewable energy sources — such as wind — are intermittent, they don't always produce power when electricity demand is high. The energy storage aspects of this project would provide a way to harness renewable energy to be used when customers need it, making this project a key component to our region's overall renewable energy strategy.

“This project has the potential to create hundreds of construction jobs and provide support for the development of a vibrant renewable energy business — and additional green energy jobs — in Ohio,” said Ohio Governor Ted Strickland. “This is an example of how we can leverage technology and our natural resources to grow our economy and ensure our energy future.”

Similar to pumped-hydro storage — where water is pumped up to a reservoir then released through a turbine to produce electricity during peak periods — compressed-air technology involves compressing air in an underground cavern or other chamber during the evening — when electricity demand is lower — and releasing it during the day, when the need for electricity is greater.

The company is evaluating its options related to the project, but has not yet committed to development scope or timing. However, an initial phase could involve installing two to four units capable of generating a minimum of 268 megawatts (MW) of electricity. With 9.6 million cubic meters of storage, the Norton Energy Storage Project has the potential to be expanded to up to 2,700 MW of capacity.

Currently, there are two commercial-scale compressed air electric generating facilities: a 110-MW plant in McIntosh, Ala., operated by PowerSouth Cooperative that began service in 1991; and a 290-MW facility in Bremen, Germany, that has been in operation since 1978. While there are other compressed-air projects under development, none is expected to be comparable in size and scope to the Norton facility.

The Norton Energy Storage Project is part of FirstEnergy's overall environmental strategy, which includes continued investment in renewable and low-emitting energy resources. In April, the company said it plans to repower units 4 and 5 at its R.E. Burger Plant in Shadyside, Ohio, to generate electricity principally with biomass. And, in September, the company announced plans to complete construction on the Fremont Energy Center, a 707-MW natural-gas-fired peaking plant located in Fremont, Ohio, by the end of 2010. Together, these projects would further reduce the company's average carbon-dioxide emission rate, which already is about one-third below the regional average.

Compressed-air storage, when combined with renewable energy resources, provides for low-emitting power generation that is dispatched when customers need it. FirstEnergy currently has more than 800 MW of renewable capacity, including pumped-storage hydro and wind power. By the end of 2012, when the biomass project at the Burger Plant is complete, the company's renewable capacity could be more than 1,000 MW.


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