Air energy storage project being built in Texas

Apex Compressed Air Energy Storage LLC picked Dresser-Rand (NYSE: DRC) to supply equipment for a 317 MW compressed air energy storage facility to be built near Tennessee Colony, Texas. The power will be used in the Electric Reliability Council of Texas (ERCOT) market, according to Electric Light & Power/POWERGRID International.

The Apex Bethel Energy Center would be the company's first compressed air energy storage facility since the Power South facility in McIntosh Ala., which was built in 1991. Dresser-Rand's portion of the contract is valued at about $200 million.

Dresser-Rand will use its SMARTCAES technology, which provides two different services — high-pressure air compression and electric power generation derived from expanding the compressed air. Industry sources estimate that there are more than 40 such projects being contemplated over the next 5 to 10 years, according to the company.

Dresser-Rand will manufacture the compression and expansion trains for the Bethel Energy Center at its facilities in Olean and Wellsville, N.Y.  The project scope also includes transportation of the equipment to the Texas site, testing, placement in operation and training.

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