CATL.COM/HGP

Contemporary Amperex Technology Co., Limited (CATL), a global leader of new energy innovative technologies, and HGP Storage, LLC (HGP), a company specializing in the development of advanced battery energy storage systems (BESS), have announced an agreement on the supply of over 450 MWh of BESS. Both parties have also agreed to enter into a long-term partnership to facilitate up to 5 GWh of utility-scale and distributed energy projects to meet Texas's growing demand for sustainable energy solutions. 

The 450 MWh of BESS will be deployed on a project in Texas, which is scheduled to begin commercial operations in 2024. CATL will supply HGP with EnerC, its containerized liquid-cooling BESS that features high level of safety, long service life and high integration. With IP55 and C5 anti-corrosion protection, EnerC is also able to meet the requirements of various harsh climatic conditions. Adopting CATL's integrated liquid cooling system will further contribute to the long service life and safe operation of the project. 

By leveraging CATL's advanced battery technology and HGP's expertise in energy infrastructure and storage resource development, this partnership will provide a streamlined go-to-market solution that meets growing needs for clean energy in Texas and North America, demonstrating the commitment of both companies towards achieving a sustainable and greener future. 

Headquartered in Dallas, Texas, HGP is a leading energy infrastructure and storage resource developer that brings decades of market knowledge to deploy investment-grade assets to power grids, accelerating the energy transition.

In December 2020, the U.S. Department of Energy (DOE) released the Energy Storage Grand Challenge Roadmap, the Department’s first comprehensive energy storage strategy. DOE previously released a draft version of this Roadmap in July 2020 along with a Request for Information (RFI). The Department reviewed the comments from stakeholders and made updates and modifications to the Roadmap based on this feedback.

Announced in January 2020 by DOE, the Energy Storage Grand Challenge (ESGC) seeks to create and sustain American leadership in energy storage. In addition to concerted research efforts, the Roadmap’s approach includes accelerating the transition of technologies from the lab to the marketplace, focusing on ways to competitively manufacture technologies at scale in the United States, and ensuring secure supply chains to enable domestic manufacturing. The Roadmap includes an aggressive but achievable goal: to develop and domestically manufacture energy storage technologies that can meet all U.S. market demands by 2030.

The Roadmap outlines a Department-wide strategy to accelerate innovation across a range of storage technologies based on three concepts: Innovate Here, Make Here, Deploy Everywhere. Recognizing the breadth of storage technologies and the ambitious nature of the goal, DOE has identified initial aggressive cost targets focused on user-centric applications with substantial growth potential. With six use cases that identify energy storage applications, benefits, and functional requirements for 2030 and beyond, the ESGC has identified cost and performance targets, which include:

• $0.05/kWh levelized cost of storage for long-duration stationary applications, a 90% reduction from 2020 baseline costs by 2030. Achieving this levelized cost target would facilitate commercial viability for storage across a wide range of uses including: meeting load during periods of peak demand, grid preparation for fast charging of electric vehicles and applications to ensure reliability of critical services.

  • Other emerging applications for stationary storage include serving remote communities, increasing facility flexibility, increasing the resilience of interdependent networks, and facilitating the transformation of the power system.

• $80/kWh manufactured cost for a battery pack by 2030 for a 300-mile range electric vehicle, a 44% reduction from the current cost of $143 per rated kWh. Achieving this cost target would lead to cost competitive electric vehicles and could benefit the production, performance, and safety of batteries for stationary applications.

The ESGC incorporates a broad range of technologies in several categories: electrochemical, electromechanical, thermal, flexible generation, flexible buildings, and power electronics and employs a use case framework to ensure that storage technologies can cost effectively meet specific needs. 

Increased renewable energy generation and a decrease in battery storage costs have led to a stronger global focus on energy storage solutions and grid flexibility services. Energy storage offers an opportunity to identify the most cost-effective technologies for increasing grid reliability, resilience, and demand management.

DOE values stakeholder input and will continue to offer opportunities for feedback. Register to receive ESGC news to receive updates. 

Download the final Roadmap below. 

Energy Storage Grand Challenge Roadmap

SER Capital Partners Acquires Projects to Install Battery Storage in Texas 

• 30 MWs expected to be online by Summer 2021 

• Located near renewable wind projects whose output is frequently congested 

• Environmentally advantaged & low-cost investment approach 

SER Capital Partners, LLC (“SER”), a sustainable-investment focused private equity firm, has acquired three project companies from HGP (“HGP”), a Texas-based energy developer, in September 2020. As part of its investment, SER also entered into a strategic arrangement with LG Chem, Ltd. (“LG Chem”), a leading lithium-ion battery supplier to ensure the most environmentally sustainable, safest and lowest cost equipment to serve its Texas customer base. 

Sara Graziano, Partner of SER, said: “We believe that the acquisition of HGP’s provides an optimal path for SER to sustainably invest in Texas. These projects will help Texas integrate renewables and reduce fossil fueled pollutants, while improving the environment and providing economic benefits and jobs to the region. Further, our partnership with LG Chem gives us access to innovative, safe, and cost-effective equipment to deploy on these projects.” 

"We have been working in the power markets for over 20 years and have seen firsthand the disruption that renewables and intermittent resources have had," said Greg Forero, HGP Co-founder and President. "As we move to a truly clean energy future and progress through the lifecycle of energy transition, our work alongside that of Perfect Power, a portfolio company of SER, will continue to focus on identifying the best in class assets that improve grid resiliency and achieve meaningful economic returns while accelerating the decarbonization of our energy grids.” 

Rahul Advani, Managing Partner of SER added: “In closing on its second investment within the past three months and committing approximately $70 million of equity capital, SER has distinguished itself as a credible partner to talented management teams and to limited partner investors seeking PE investment opportunities tied to sustainability.” 

Metric Point Capital acted as the exclusive placement agent for the fundraise. 

About SER Capital Partners 

SER Capital Partners is an independent, middle-market private equity firm dedicated to investing in North America’s sustainable industrial, environmental and renewable businesses. Over the past two decades, its team members have amassed successful experience in its targeted sectors as private equity investors and senior executives at both private and public businesses. The firm’s strategy is to create attractive investments while also authentically measuring and improving sustainability. SER team members are also committed to aligning interests across its investors, team members, portfolio companies, and communities. More is available at www.sercapitalpartners.com. 

About LG Chem 

LG Chem is one of the world's largest lithium-ion battery manufacturers with a market-leading position in advanced batteries for grid-scale, residential storage and automotive applications. Our advanced lithium ion battery technology is the product of 26 years of experience in the development and production of mobile batteries and large format batteries for automotive and energy storage systems (ESS). LG Chem's commitment to technology leadership coupled with efficient and high-quality manufacturing processes 

produces batteries that exhibit the highest levels of safety, performance and reliability. For more information about LG Chem's ESS Battery, please visit www.lgessbattery.com. 

About HGP 

HGP storage is a development and investment company focusing on building decentralized and distributed storage resources to achieve a decarbonized energy future. HGP storage was founded by a veteran team of energy and commodity executives, power system specialists and engineers to provide Energy As A Service (EAAS) assets and storage solutions. 

Metric Point Capital (Member FINRA and SIPC) 

Metric Point Capital (“Metric Point”) is a capital advisory and placement firm specializing in raising institutional capital for alternative investment managers. Fund and co-investment assignments include leveraged buyouts, energy, real estate, infrastructure, royalties, mining, credit, and distressed debt, among others. Metric Point advises on all aspects of the fundraising process, including competitive positioning, preparation of marketing materials, comprehensive strategic fundraising planning, and distribution. The firm has professionals located in New York, Stamford, Chicago, Los Angeles, and Austin. Rahul Advani 

SER Managing Partner 

radvani@sercapitalpartners.com 

(415) 873-1015 

Sara Graziano 

SER Partner 

sgraziano@sercapitalpartners.com 

(212) 482-2118 

FERC clears path for DERs in wholesale markets

On Sept 17, FERC approved Order 2222 enabling distributed energy resource (DER) aggregators to compete and participate in regional organized wholesale electricity markets. FERC expressed that Order 2222 will increase competition and enhance grid flexibility and resiliency attributes by allowing DER participation, also expressing that DERs have already proven ability to regulate grid frequencies and deliver localized capacity across the country. Specifically, FERC intends Order 2222 to remove barriers to entry for DERs to expand the ability ‘to harness the full potential of these flexible resources’. Under Order 2222, RTO/ISOs must revise tariffs to establish DER aggregators as a type of market participant to allow them to register resources under one or more participation models to accommodate the physical and operational characteristics of DERs and prohibits them from broadly excluding DERs from participation. FERC highlighted DERs including but not limited to, BTM solar, storage, demand response, energy efficiency, EVs and EV chargers, and other controllable loads (grid-responsive water heaters and HVAC systems for instance). New markets structures are to be created by RTO/ISOs in compliance with Order 2222. PJM as a potential opportunity market for DERs with Order 2222. HGP is focused on aggregating commercial/ residential solar+storage grid services increasing utilization of these resources, decreasing congestion on the system and lowering costs for all.

HGP is unlocking additional revenue streams that will benefit individual DERs as well as a greater sum of the parts multi-node aggregation Virtual Power Plant (VPP.)