Houston-based energy-storage company Quidnet Energy is deploying its technology in a new project with San Antonio-based utility provider CPS Energy.
On March 7, Quidnet and CPS Energy announced a 15-year commercial agreement for an energy-storage project using Quidnet's proprietary pumped-storage technology. The project will help support CPS Energy's goals to reduce carbon emissions by 80% by 2040.
Quidnet Energy will begin the project by developing an initial 1 megawatt, 10-hour storage facility for CPS Energy. As the collaboration matures, CPS Energy will have the option to expand the project up to a capacity of 15 megawatts of emission-free storage.
CPS Energy, which serves more than 884,000 electric and 366,000 natural gas customers in San Antonio and portions of seven surrounding counties, plans to increase its usage of renewables by 127% and decrease gas- and coal-fired generation by 72% and 61%, respectively, by 2040.
"New technologies like Quidnet’s GPS energy storage can enhance reliability and enable us to expand our renewable power resources and explore new technologies as we build our path for the future," said Rudy Garza, interim president and CEO at CPS Energy. "Incorporating Quidnet’s homegrown Texan energy-storage solution allows us to create a cleaner electric supply while supporting our local energy industry workforce and lowering costs for our customers."
Quidnet, led by CEO Joe Zhou, uses conventional drilling and construction technologies to pump water into subsurface rock reservoirs, where it is held under pressure. When electricity supply is needed, the pressurized water is released to power a hydroelectric turbine. In Texas, the Houston-based startup has developed energy-storage sites in Medina and San Saba Counties. Quidnet is also developing pilot projects in Ohio, New York and Alberta, Canada.
Quidnet can develop projects of between 1 and 10 megawatts deployable on small footprints to provide extra support to the electric grid as needed. A Quidnet project uses only a few acres of land to house a holding pond, a wellhead site, and pumping and generation equipment.
"Just a few years ago, almost no one was talking about long-duration energy storage. Today, it’s one of the fastest-growing areas of the energy sector," said Zhou. "CPS Energy is leading the way with this breakthrough project."
In 2020, Quidnet raised a $10 million Series B funding round, which included investments from Evok Innovations and Breakthrough Energy Ventures, the venture arm of Bill Gates's Breakthrough Energy. The company has also received support from commodity trading and logistics firm Trafigura, the U.S. Department of Energy, the New York State Energy Research and Development Authority, and Emissions Reduction Alberta.
