Marguerite Lake Compressed Air Energy Storage (CAES) Project

The facility could also reduce reliance on less efficient peaking generation while complementing existing generation resources. As Alberta continues adding renewable energy capacity, technologies capable of balancing intermittent generation are expected to become increasingly important. BUILDING A PLATFORM FOR THE FUTURE While the project’s immediate focus is compressed air energy storage, the site has also been designed with future hydrogen opportunities in mind. “Hydrogen is part of the project’s long-term vision to further reduce emissions and support Alberta’s broader energy transition,” Costley says. The project area contains multiple salt formations, including the Prairie Evaporite formation, which has been identified as a potential hydrogen storage resource. In addition, the Siemens Energy equipment selected for the project can already operate with hydrogen blending and offers a pathway toward full hydrogen operation in the future. The company has also partnered with Babcock & Wilcox to evaluate integration of its BrightLoop technology, which could support lower-emission hydrogen production. Looking further ahead, the combination of hydrogen production, underground storage and Alberta’s geology may create opportunities for future carbon storage initiatives. “What makes the site unique is that it gives us options and flexibility,” says Costley. “We can start with long-duration energy storage, but the infrastructure and geology also create opportunities to evaluate hydrogen production, storage, and, as 8

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