Hurricane Irene Could Cause Gas Price to Rise
Gasoline futures have risen 10 cents this week for fears that hurricane Irene will disrupt oil infrastructure on the United States east coast. Refineries, shipping routes and pipelines are all at risk from the giant storm pattern working its way up the coast and speculators fear the worst. The combination of closed refineries mixed with thousands of people loading into their cars and heading westward away from the water could send gasoline prices rising as much as 20 cents over the weekend.
Refineries are already reportedly taking precautionary action, and several are expected to close temporarily during the storm. 10 percent of the United States’ refining capacity is located in Philadelphia, New Jersey and Delaware, and all these locations are expected to be hit by Irene. PBF Energy President Michael Gayda says “We have an emergency response plan in place,” but has yet to decide whether regional refineries are going to shut down completely or go into “warm” mode (a partial shutdown).
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Although refineries are generally built to withstand the winds of a category 5 hurricane, they tend to rely on electricity from outside sources. So if the regional power grid fails, the refineries go offline. However, it is far less dangerous for refineries to initiate a shutdown versus risking an electrical outage, which can create harmful conditions for workers.
Large ships such as oil tankers are being deployed to see to avoid potential damage from crashing into docks.
Analysts are preparing for the rise in gas prices, and a spike will likely be seen based on speculation whether or not refineries close or there is infrastructure damage.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.