HOUSTON, May 14, 2002 — Ridge Energy Storage and Grid Services, L.P. announced that it has executed an agreement with EP Energy Finance, a subsidiary of El Paso Corp., for $15 million of capital to develop compressed air energy storage (CAES) projects.
CAES projects offer bulk power storage to the electric industry. They use an independent compressor powered by low-cost electricity to charge a large underground formation with compressed air. During peak electricity demand or price periods, the compressed air is discharged through a gas turbine and fired with natural gas to drive an electric generator.
CAES plants are more environmentally friendly than conventional combined-cycle plants, are an economical source of peaking and intermediate power, and can maximize the utilization of existing power plants.
“We are excited to have EP Energy Finance as a financial backer,” said Bob Casey, President of Ridge Energy Storage and Grid Services, L.P. “The funding support and development experience provided by EP Energy Finance will help Ridge bring CAES technology to the market and add power storage to the existing supply and demand profile. CAES will improve the efficiency of deregulating power markets in the same way that gas storage improved efficiencies as the natural gas market deregulated.”
Ridge Energy Storage and Grid Services, L.P. was formed to bring the CAES option to the commercial electricity marketplace. Ridge principals are seasoned energy industry professionals, with extensive experience in managing and overseeing the construction of power plants deploying emerging technology; operating power plants for profitability in volatile markets; trading and transporting energy commodities; financing complex energy projects; and permitting, siting, and developing storage caverns. For more information, please visit http://www.ridgeenergystorage.com/ .