capturing the power of nature iowa stored energy park advancing renewables in the midwest...

CAPTURING THE POWER OF NATURE

Iowa Stored Energy Park

Advancing Renewables in the Midwest

Anheuser-Busch Natural Resources Building

March 28, 2007

Kent Holst

Development Director

CAPTURING THE POWER OF NATURE

Iowa Stored Energy Park

“It’s The Responsible Thing To Do”

CAPTURING THE POWER OF NATURE

▪(Animation from Web Site)

CAPTURING THE POWER OF NATURE

Where We Are:

▪We’ve found the geologic formation.

▪The Department of Energy backs the project.

▪Energy customers support the idea.

▪Investors are coming on board.

CAPTURING THE POWER OF NATURE

The Site Fits CAES Storage Requirements

Size

Depth

Porosity

Permeability

Cap Rock

Chemistry

CAPTURING THE POWER OF NATURE

▪Located west of “downtown” Dallas Center, Iowa

▪Within city limits, but still primarily rural

▪Landowners & citizens coming on board

CAPTURING THE POWER OF NATURE

Why The Department Of Energy Backs ISEP

▪Increased demand requires new resources

▪Federal & State mandates on emissions likely

▪Trends, challenges, and needs point to ISEP

CAPTURING THE POWER OF NATURE

▪Iowa Stored Energy Park

“It’s The Responsible Thing To Do”

What Energy Customers Say…

CAPTURING THE POWER OF NATURE

▪Helps reduce/control MY household energy costs

▪Uses a resource (wind) not being used enough

▪Can decrease dependency on foreign energy

▪Can decrease dependency on fossil fuels

▪Is a clean and healthy source of energy

CAPTURING THE POWER OF NATURE

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

CAPTURING THE POWER OF NATURE

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

CAPTURING THE POWER OF NATURE

Costs $/MWh in 10% to 50% Capacity Factor.

0

10

20

30

40

50

60

70

80

90

Coal-PC CC SC CAES

Compression

Fuel + VOM

Fixed Costs

$/MWh

CAPTURING THE POWER OF NATURE

How Much Would CAES Save?

•268 MW of CAES can save utility owners $5 Million per Year in cost of energy *

•Additional operational savings will come from better flexibility of CAES

•Black & Veatch: 200 MW CAES offers system benefits of $100 million/year

* Comparison: CAES to CC or Coal at 30% Capacity Factor

CAPTURING THE POWER OF NATURE

Funding to date

▪$1,000,000 from Municipal Utility Funds

▪$3,500,000 from Federal Funds

CAPTURING THE POWER OF NATURE

Moving Forward

▪Leaving Research Phase▪Entering Development Phase

Research Development Construction ending 2007 -2009 2009 - 2011

CAPTURING THE POWER OF NATURE

▪Iowa Stored Energy Park

For more information:

Kent Holst ISEPA Development Director319.239.8968 kentholst@traer.net www.isepa.com