Gordon Butte pumped storage project in Montana bags Dutch investment
The Gordon Butte pumped storage hydro project in Montana has attracted investment from a Dutch fund management company.
Copenhagen Infrastructure Partners (CIP), through Copenhagen Infrastructure III (CI III), has agreed to become a lead equity investor in the project.
The 400MW Gordon Butte pumped storage hydro project is currently in an advanced stage of development.
It is being developed by the Montana-based energy company Absaroka Energy.
The closed-loop pumped storage project is expected to be ready for construction start by 2020.
The project has already secured the site, water rights and permits from the Federal Energy Regulatory Commission (FERC).
The permits also include a new major hydro license for the construction and operation of the Gordon Butte facility.
The Gordon Butte pumped storage hydro project is located about 4.8km west of Martinsdale, Montana.
It is also less than 9.6km away from its interconnection to the Colstrip twin 500 kV transmission lines, which are considered to be crucial for Pacific Northwest’s electric system.
According to Absaroka Energy, the Gordon Butte facility presents a carbon-neutral alternative to the types of natural gas plants that are being considered by the region’s energy providers.
Carl Borgquist – Absaroka Energy president said: “Montana could be the epicenter of Northwest U.S. energy generation potential when linked with the world class capacity and storage technology deployed at Gordon Butte, adding jobs and a new, long-term and sustainable tax base.
“It only makes sense this project attracted a world class investor like Copenhagen Infrastructure Partners who are funding billions of dollars in renewable energy projects across the globe.”
To enable the plant to quickly switch between pumping and generating, the project will feature a quaternary configuration of pump and turbine equipment to be delivered by GE Renewable Energy.
The configuration is expected to result in a flexible, capable and low-cost capacity to meet the daily requirements of residential and commercial customers in the region.
Christian Skakkebaek – CIP senior partner said: “At CIP, we focus on teaming with leading developers and making investments in energy infrastructure assets with a high degree of stability in cash flows.
“With the long investment horizon of our funds, it enables us to participate in large projects overseeing financing, construction and operation. Pumped storage hydro is a unique and valuable asset class that will be a key resource as the global transition to renewable energy continues to accelerate in states such as Montana.”