Keystone Pumps Crude Anyway
Despite President Barack Obama's denial of the Keystone XL Pipeline permit last month, TransCanada is shipping some 100,000 barrels of crude oil per day to the nation's largest crude oil terminal and trading hub, Cushing. The 300-mile long leg of the pipeline from Steele City, Neb., to Cushing has been in operation for almost a year.
"I'm not sure if that by itself is significant, but what interests me is the point that plenty of Canadian oil already is flowing to Cushing via a Keystone line, while environmentalists are attacking the perceived danger of the XL," Norm Szydlowski, CEO of SemGroup Corp. and Rose Rock Midstream LP toldTulsa World.
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Using Cushing and other available Midwest terminals, Keystone could move 591,000 bpd from Canada and other producing formations in northern US. Oil executives remain hopeful that the administration will eventually allow the other two legs of the pipeline to be built.
TransCanada representative Jim Dunlap said TransCanada would support moving the planned route of the pipeline near the Ogallala aquifer in Nebraska 60 miles east to avoid the region to ease the fears of its opponents and environmentalists. However, a number of pre-existing pipelines already exist in the region, and he argues that the debate is more about the use of fossil fuels rather than the threat the pipeline poses to the aquifer.
If the pipelines do not get built, oil contractors are likely to turn to other markets like China. Keystone proponents continue to argue that the pipeline is safer than existing pipelines, and spills have only occurred at pump stations.
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.