Corre to acquire 280MW CAES project

July 26, 2023

Corre Energy has entered an exclusivity agreement to acquire a 280MW compressed air energy storage (CAES) project in the West Texas region of ERCOT comprising three pre-constructed salt caverns.

Corre said it is aiming for a final investment decision in 2025.

The exclusivity agreement to acquire 100% of the project assets has been signed with Contour Energy LLC, a Texas-based energy storage developer. Contour Energy will provide an “experienced on-the-ground team and work closely with Corre Energy to complete the project”, a Corre statement said.

“The Texas project is supported by a positive economic environment, including the Inflation Reduction Act and extended Investment Tax Credit offered by the US government, representing an attractive entry point into the US market for Corre Energy,” the statement added.

Confirmatory diligence and project finance arrangements for the acquisition are now underway, the company said. The transaction is expected to close later this year. 

Keith McGrane, CEO of Corre Energy, said: “This maiden US project fits squarely with our strategy to build a high-quality portfolio of compressed air energy storage assets, deliver high teen returns and provide timely equity sell-down opportunities at project level. Our track record and ambitious plans have translated into demand from institutional investors seeking to fund our portfolio and we look forward to choosing the optimal solution to power our future plans.”