SEOUL, May 27 (Korea Bizwire) — LG Chem, South Korea’s leading chemicals and battery maker, will team up with U.S. energy giant Duke Energy to build a battery-based energy storage system at a retired coal power plant in Ohio, the companies said Wednesday.
LG Chem said it will provide the operating system and batteries for the 2-megawatt project at the site of Duke’s closed coal plant in New Richmond by the end of the year. Detailed terms were not disclosed.
PJM Interconnection LLC, which runs the biggest U.S. power market, will use the batteries to help manage the electricity grid in the northeastern region.
The systems “can instantaneously absorb excess energy from the grid or release energy,” Phil Grigsby, Duke’s vice president of commercial transmission, said in the statement. “Delivering that power in seconds, as opposed to a power plant that could take 10 minutes or more to ramp up, is the unique value the battery system provides.”
LG Chem has vowed to tap deeper into the U.S. grid-connected storage market, which has grown rapidly on the back of government subsidies.
Duke Energy, the largest U.S. utility owner by market value, owns about 15 percent of the nation’s battery-based energy storage market.