After an initial collaboration to verify the mine storage solution with electricity storage and production based on pumped storage in closed mines, Mine Storage and Mälarenergi are now proceeding with in-depth feasibility studies regarding several possible facilities in Bergslagen. Mine Storages can provide opportunities for both ancillary services and for electricity trading.
On 10th of November the parties signed a letter of intent on strengthening their collaboration. The intention is to jointly investigate the technical and commercial conditions for developing up to three facilities in Bergslagen, which are in the vicinity of Mälarenergi. The respective plant is estimated to be able to produce an electrical output of approximately 15 MW and with an energy quantity of 30-75 MWh per cycle.
Mine Storage will lead project development in areas such as land rights, environmental and permitting processes, technical design, and preparation of investment documents. Mälarenergi will participate in the project development and add competence and resources mainly in electricity trading, production, and operation-related services.
“Through the initial collaboration with Mine Storage and their innovative solution in the energy field, we see great potential in them and their large-scale energy storage concept that is based on mature power technology but used in a completely new and innovative way. Our assessment is that our companies complement each other well in competence in power production, energy storage and trade in electricity. We look forward to deepening the collaboration at this stage,” says Niklas Gunnar, CEO of Mälarenergi.
Mine storage, in short, consists of using decommissioned mines, where equipment is installed to pump up water at low electricity prices and then release the water through a turbine connected to a generator at times when the market needs it to support the electricity system or when prices are high. This then contributes to the stability of the electricity system and more electricity production during peak price hours, which in case of large-scale expansion can have a price dampening effect. By using state-of-the-art hydropower technology that reacts quickly enough to help balance the grid, mine storage facilities can enable the green energy transition.
“Mälarenergi is an innovative energy company that is at the forefront of securing a green energy transition, and their agile business approach make them an ideal partner for us. We have a common view of the energy system’s challenges and possible solutions, so we look forward to continued cooperation that leads to the realization of mine storage facilities”, says Thomas Johansson, co-founder and CEO of Mine Storage.
The letter of intent was signed on November 10 during the HUB2022 energy conference in Västerås.
Mine Storage AB, Thomas Johansson, CEO, +4670-69 67 800, firstname.lastname@example.org
Mälarenergi AB, Jan Andhagen, CEO, +4621-39 50 30, email@example.com