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In line with its goal to become a leader in the energy transition, Equinor ASA has approved its first two battery storage projects in the United States.
The two projects have a combined capacity of 110 megawatts (MW) and, once operational, will provide a valuable source of energy security to the Texas power grid, the company said in a recent news release.
Equinor noted that construction has begun on its Sunset Ridge Energy Center in Frio County, Texas. Meanwhile, the Citrus Flats project in Cameron County, Texas, is being prepared for implementation. Once operational, Citrus Flats and Sunset Ridge will be commercialized by Danske Commodities, Equinor’s wholly-owned energy trading company.
In July 2022, Equinor announced the acquisition of 100% interest in East Point Energy, a privately held US storage battery development company headquartered in Charlottesville, Virginia. The company said in an earlier statement that the acquisition provides a platform to expand its energy offerings in the United States. East Point has a project pipeline of approximately 3 gigawatts (GW) of battery storage projects across the country.
Sunset Ridge is East Point Energy’s first battery storage project in Texas and will be connected to the South Texas Electric Cooperative (STEC) electrical grid. According to the release, the 10 MW/20 megawatt hour (MWh) battery storage project will enhance reliability and allow STEC to better serve customers during peak demand times. Equinor plans to begin commercial operations at Sunset Ridge in the second half of this year.
Citrus Flats will be a 100MW/200MWh battery storage project that will be connected to the American Electric Power grid. Equinor outlined that the project is scheduled to reach commercial operation in early 2026.
Sunset Ridge and Citrus Flats will operate on a fully commercial basis in the ERCOT electricity market in Texas, with real-base project returns close to the high end of Equinor’s guided renewable energy range of 4% to 8%. It is hoped that this will be achieved.
“Energy storage is essential to balancing Texas’ growing energy demand and supply,” said Andrew Foucal, CEO of East Point Energy. “We are excited that our project will support a more renewable, resilient and affordable power grid for the Cameron and Frio communities and the entire ERCOT market.”
“By leveraging East Point Energy’s capabilities and maximizing synergies with Danske Commodities, we aim to build a robust and diversified battery storage portfolio with expansion opportunities.” said Christian Lee Hansen, vice president of land-based renewable energy for the Americas and chairman of East Point. This was announced by the Energy Commission.
“Our ownership in East Point Energy creates a strong foundation for building a material and profitable battery storage position across attractive U.S. power markets and supports market-driven generator strategies. ,” Hansen added.
Equinor’s U.S. renewable energy portfolio includes offshore wind projects such as Empire Wind off the coast of New York and Atlas Wind off the coast of California. Equinor is also a partner in Bayou Bend CCS in southeast Texas and has been active in the U.S. upstream oil and gas sector since 2004. The company’s subsidiary, Equinor Renewables, aims to install 12 to 16 GW of renewable energy globally by 2030.
To contact the author, please email rocky.teodoro@rigzone.com.
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