KCE, MHPS and Powin Energy join forces to set up 200 MW of battery energy storage in Texas

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Key Capture Energy (KCE) has selected Mitsubishi Hitachi Power Systems Americas, Inc. (MHPS) and Powin Energy Corporation (Powin) to build three utility-scale battery energy storage systems (BESS) projects totaling 200 megawatts (MW) in Texas. MHPS will provide turnkey engineering, procurement, and construction, as well as long-term service support for all direct current (DC) equipment, power conversion systems, and high voltage substations. Powin will provide a fully integrated battery, a battery management system, and long-term service.

Construction on KCE TX 11 (50 MW), KCE TX 12 (100 MW), and KCE TX 23 (50 MW) will begin in the fall of 2020, and the projects will be online before the summer of 2021. KCE has been a first mover in Electric Reliability Council of Texas (ERCOT) standalone storage. The company’s first-half 2021 operating capacity of 229.7 MW of battery storage projects is enhanced by 199 MW of offtake contracts with investment grade counterparties.

MHPS and Powin both have extensive lithium ion energy storage experience and together developed a custom solution to meet KCE’s technical requirements. It uses lithium iron phosphate battery chemistry (LiFePO4) combined with fast acting controls and power conversion systems selected from key suppliers.

The BESS projects expand all three companies’ presence in ERCOT. KCE is currently the second largest operator of stand-alone battery storage projects in Texas, with three operating projects totaling 29.7 MW — all of which Powin contributed to as the battery system integrator. KCE also has a growing pipeline of stand-alone energy storage projects under development in Texas. The Mitsubishi Heavy Industries Group Companies have been leading the investment in lower carbon intensive energy technology in Texas, which includes 2 gigawatts (GW) of on-shore wind generation, 1.3 GW of natural gas generation, and the world’s largest post-combustion carbon dioxide capture project. The BESS projects continue Mitsubishi’s history of technology-driven partnerships and solutions in the region.  

Jeff Bishop, Chief Executive Officer of Key Capture Energy, stated, “As an industry-leading energy storage solution provider, MHPS has a strong history of technological innovation, a proven track record in large-scale project management, and strong financial positioning. We are pleased to partner with MHPS to supply full turnkey solutions for this round of Texas projects. Texas is the epicenter of the global energy market, and with a growing Houston office, we look forward to providing best-in-class energy storage solutions in the Lone Star state for decades to come.”

Tom Cornell, MHPS’ Vice President of NEXT, said, “Key Capture Energy is a premier developer with an impressive 1500 MW of stand-alone battery storage projects in its pipeline across the country. We look forward to joining forces in Texas to build battery energy storage for ERCOT’s needs. With today’s increasing penetration of renewable energy, it’s an ideal time for projects such as this to optimize the grid. We are experiencing a Change in Power.”

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