On March 10th, 2022, Corre Energy was pleased to release its Operational Update. In this update, we outlined key recent global developments to the industry and the progress of our Long Duration Energy Storage (LDES) projects and products.
Changes to the energy market
Perhaps one of the most pertinent aspects of the Operational Update was identifying the increasing global demand for LDES solutions from a range of market parties. ‘REPowerEU’, a recently announced plan from the European Union, will directly benefit Corre Energy. This plan will ensure the acceleration of renewable permitting and the development of a hydrogen storage accelerator.
Geo-political risks and unprecedented rises in electricity prices are also significantly supporting the EU’s recent announcements. With Corre Energy’s LDES projects and products, we have a unique ability to balance and secure energy supplies (playing directly into these measures). We anticipate that the European Union’s announcements will increase the approval probability of our projects in The Netherlands and Denmark, alongside supporting Corre Energy’s expansion interests for additional projects in Germany, the UK, and the USA.
Storage valuations are expected to be favourable and lead to consequent offtake contract negotiations due to the current market conditions. Corre Energy’s milestones have been optimised to take advantage of the rising demand and to enhance economics. Current market conditions will also support Corre Energy’s steady progress towards achieving key operational milestones for both The Netherlands (ZW1) project, and Green Hydrogen Hub Denmark (GHH).
The need for Long Duration Energy Storage (LDES)
Long Duration Energy Storage (LDES) technologies offer a sustainable and scalable solution to renewable energy fluctuations, and can facilitate flexible, reliable, and affordable energy systems. The cost savings from LDES can be passed on to customers, helping to alleviate the rising energy prices which we’re seeing across the globe. The increasing importance of LDES solutions is echoed in recent Government pledges, such as the UK Government’s recent financial boost for renewable energy storage technologies.
Green hydrogen storage projects are also seeing a significant amount of investment. Some examples of emerging green hydrogen storage projects include Sweden’s rock cavern hydrogen storage project, Carbon280’s HydrilyteTM Refueller project in the UK, and Green Hydrogen Hub Denmark (GHH).
These emerging projects, along with the countless others in preparation, are imperative for nations around the globe to navigate current energy market conditions and facilitate the green energy transition.
What is Corre Energy’s role?
Corre Energy is a leader in the development, operation, and commercialisation of LDES projects and products. Its goal is to accelerate decarbonisation and enhance the security and flexibility of energy systems.
Our team has extensive experience and success in the energy sector – in renewables, energy storage and hydrogen, including market-leading expertise in modelling the capability of LDES to integrate large-scale renewables.
Corre Energy’s first project, CAES Zuidwending (ZW1), is a large-scale renewable electricity storage facility currently under development. ZW1 is being developed in partnership with Infracapital (part of M&G Group plc).
The project is listed on the ENTSO-E Ten Year Network Development Plan (TYNDP), and will deploy advanced compressed air energy storage (CAES) technology to develop and implement renewable CAES solutions for the integration of renewable energy.
Alongside the ZW1 project, Corre Energy is the consortium lead for the development of the Green Hydrogen Hub Denmark project (GHH).
This project aims to combine large-scale hydrogen production with underground hydrogen storage and compressed air energy storage to accelerate Denmark's green energy transition. GHH brings together Corre Energy, Eurowind Energy A/S, and Gas Storage Denmark. In consortia, we combine unparalled expertise to balance renewables with 100% green power.