Orsted and Mission Clean Energy (MCE) announced a strategic partnership to advance four standalone battery energy storage systems (BESS) across the Midwest United States.
According to the agreement, MCE, a developer of utility-scale renewable energy and storage, will continue to own and lead development of the projects, while leveraging Orsted's operational experience and resources to bring the battery projects to fruition.
Orsted will utilize its capital to secure and maintain interconnection queue positions for the projects and have the option to acquire an ownership stake as the projects mature, the companies disclosed in their press release.
The partners have submitted interconnection applications for the projects, totaling 1 GW, in the Mid-Continent Independent System Operator (MISO) Central and North, the release noted.
James Giamarino, Chief Commercial Officer at Orsted, said of the development: "We look forward to working with Mission Clean Energy under this unique partnership to accelerate the expansion of storage projects across the Midwest [US] and broaden our portfolio of renewable energy technologies and services for customers."
Max Bakker, CEO of Mission Clean Energy, commented: "Orsted is an ideal partner to complement our development capabilities with their balance sheet strength and sponsorship support. Our combined expertise and resources will accelerate these projects and deliver impactful clean energy solutions in the MISO region."
The agreement marks Orsted's first standalone battery storage partnership whether in the US or worldwide. The company has a portfolio of nearly 6 GW of renewable energy projects in operation or under construction across the US.
This includes the 40 MW storage project at Permian Solar Center in West Texas and the 300 MW / 1,200 MWh storage project at Eleven Mile Solar Center in Arizona.
In the release, the companies noted that "MISO's robust, long-term demand for new storage capacity necessitates a strong understanding of key market drivers. The region is experiencing a transformative shift in its supply mix, driven by a significant increase in non-emitting generation resources. The four projects are strategically sited to meet capacity requirements and manage increasing grid volatility, with a strong emphasis on the locational benefits that they will provide."