Solutions

Advising an Energy Corporation: From Iron Mine to Energy Storage Plant

Our Client

Brock Capital Group’s client, a single-purpose California corporation, was formed in 1992 to develop and construct a pumped storage power plant. Pumped storage hydroelectricity is a versatile, cost-effective method of energy storage and reclamation: excess off-peak power is used to pump water to an elevated reservoir, which during peak demand supplies water to hydroelectric generators. This allows for more efficient and economical use of existing power supply, replacing the need for extra high-pollution plants.

Our client perceived a developmental opportunity in an abandoned iron mine 45 miles east of Palm Springs, CA, and has secured a permit from the FERC for exclusive development rights. Existing reservoir excavations, a local aquifer, and proximity to a major intra-state power transmission corridor all considerably reduce the cost per kilowatt relative to similar projects. The site will initially provide 1,300 megawatts (with the potential to expand up to 4,000 megawatts) of electricity, standby capacity, and ancillary services to both the Southern California and Arizona power markets – while transforming a bare mine into a significant green energy initiative.

Engagement

Securing a location and capital are two common challenges of developing pumped storage facilities. Having formed explicitly to develop an identified prime location, our client engaged Brock Capital Group for its financial needs. As an initial service, we advised and managed a private placement.