Unique Energy Storage Project Combines Anthracite Coal, Pumped Hydro

I thought I’d post an unusual conversation I had earlier today with Paul DiRenzo of Schuylkill County, Pennsylvania regarding his concept for a 300 MW pumped storage project.

Paul: Our small family group remains convinced that planned coal surface mining and reclamation can result in a pumped storage scheme. Accordingly, we are currently studying this approach at a specific site here in the heart of the anthracite coal region of eastern PA, as well as the PJM-RTO. More info available at: www.opportunityforblythe.com

Craig: Wow, I have to say that this is interesting, but I’m not a fan of coal mining.

Paul: That’s understandable. However, there’s an old saying /slogan… “It’s not just coal…it’s Anthracite!”

Craig: Huh?

Paul: A large worldwide market for anthracite coal includes water / wastewater filtration media. So anthracite is actually used to clean the environment. It’s a niche multi-use coal comprising less than 1% of the coal burned used in the world. 99% of the world thermal generation coal(s) are of lower bituminous and lignite rank.

Here are some other relevant links.

Any help sharing our project is greatly appreciated.

Craig: I see. Let me think about this.

Paul: There are other existing and planned pumped storage schemes that utilized abandoned surface / underground mines. Beside ours, we are not aware of any other that integrates substantial natural resource recovery to help subsidize pumped storage development costs. Are you aware of Eagle Crest Pumped Storage in Cal?

From a financial standpoint the project is unique because +$200M worth of high grade anthracite coal will be recovered in the process of creating the lower reservoir by and through surface mining and reclamation. What’s more, surface mining will produce sufficient earth and rock for upper ring-dam construction. The integration of mining and pumped storage would greatly reduce construction costs. With the cost of the lower reservoir and earth moving absorbed by mining and coal recovery, we anticipate a relatively low $/KW installed cost. We have not yet completed long range financial analysis. We seek partners at this early stage…essentially to take our FERC pre-permit and run with it.

Craig: Neat idea, though, obviously, I’d rather see the coal stay where it is. And yes, I had come across Eagle Crest.

Can you share some of the financial information that may serve to attract people? What’s the cost? The terms of the PPA? The IRR?

Paul: This is early stage; we’re looking for partners/investors to explore this.

Craig: Well, this sounds sketchy in the extreme, but I’ll post something on it anyway, since it’s unique; I’ve never seen another one like this.

Paul: Thanks.