magnum’s western energy hub
TRANSCRIPT
Magnum’sWestern Energy HubWestern Energy Hub
S i h W ’ E C dServing the West’s Energy Crossroads
Sustainable Energy Storage SolutionsSustainable Energy Storage Solutions That Enable a World of Energy Alternatives
June 2, 2009
The AgendaThe Agenda
• Project Overview
• Natural Gas Storage
C d Ai E• Compressed Air Energy Storage– Western Region Benefits of CAES
• State of Utah Benefits
• The Magnum Team
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Project OverviewProject OverviewA premier multi‐purpose energy storage facility that:
1. Is a first of its kind integrated energy storage facility serving Western energy markets.
2 I t t i ll l t d t b d f2. Is strategically located to become a crossroads of existing and developing electric, natural gas and other infrastructure in the west … while expanding the development of renewable resources.
3. Will increase efficiency, reliability and competitiveness of Western energy marketsof Western energy markets.
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The Western Energy Hub OverviewThe Western Energy Hub Overview• Located in Millard County, the hub
will develop Utah salt caverns for natural gas and electric storagenatural gas and electric storage.
• The Energy Hub will provide energy storage capability to enhance WGA’s 30 000 MW clean energy goal30,000 MW clean energy goal.
• Demonstrates excellent public/private cooperation (Utah Trust Lands)Trust Lands).
• Delivers natural gas storage (Phase I) and compressed air storage (Phase II) to enhance energy markets andII) to enhance energy markets and renewable power delivery.
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Western Energy Hub’s Strategic LocationAt a crossroads for gas and power infrastructure
Western Energy Hub is working with “strategic” partners to create a “super hub” capable of serving existing and future natural gas and electric infrastructure needs.
Kern River, Opal Plant
Western Energy Hub
Power Lines
Operating Power Plants
Power Pricing Point
Gas Pricing Point
West. Energy Hub
Gas Pipelines
Source: Energy Velocity June 09
Operating Power PlantsCoal PlantNatural Gas Plant
Proposed Power PlantsWind Power Plants 5
The Western Energy Hub Gas Storage •Will support operation of natural gas fired generation in response to variable western power demand.
•Will allow for more efficient ‘firming’ of renewable generation.
•Will use existing and new natural gas and electric•Will use existing and new natural gas and electric transmission more efficiently, thus reducing environmental impacts and costs.p
•Will enhance the reliability and efficiency of energy infrastructure.
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Magnum Gas Storage MarketCreating Regional Opportunities
Western Energy Hub500,000 Dth/Day, y
Deliverability
Base map Source: Kern River Gas Transmission 7
The Western Hub Compressed Air Energy Storage (CAES)
• Addresses the most critical issue in renewable energy’s market penetration: its intermittent nature.
• The Western Hub’s CAES project allows renewable energy to be stored, thus greatly increasing its
k t lmarket value.
• Will enhance value of Utah wind and solar energy facilitiesfacilities.
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How Does CAES Work?How Does CAES Work?
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Preliminary Utah Benefits• Total build out: $.75 to $1.5 billion estimate
• Employment during construction: 400+ estimateEmployment during construction: 400+ estimate
• Employment during operation: 100+ estimate
• Estimated local taxes: $15 million annually• Estimated local taxes: $15 million annually
• Foundation for Utah renewable resource infrastructure identified in the UREZ studyidentified in the UREZ study
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Magnum Team – Experienced and Recogni ed LeadersRecognized Leaders
Project Development Support Project Development Support
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Magnum DevelopmentMagnum DevelopmentRobert Webster
M i DiManaging Director2150 South 2100 East, Suite 500
Salt Lake City, Utah 84105
801‐990‐[email protected]
Craig BroussardManaging Partner
2150 South 2100 East, Suite 500Salt Lake City Utah 84105Salt Lake City, Utah 84105
801‐ 652‐[email protected] a gb ou@ s co
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