Exciting Developments in Memphis: New Energy Storage Project on the Horizon!

Exciting Developments in Memphis: New Energy Storage Project on the Horizon!

Memphis is buzzing with excitement as news breaks about a potential energy storage project that could bring significant economic benefits to the city. The buzz is centered around a parcel of land near Presidents Island, where an energy storage company is looking to lease 40 acres owned by the Economic Development Growth Engine for Memphis and Shelby County (EDGE). This could be a game-changer for the local power landscape!

Who’s Behind the Project?

The LLC behind this ambitious project, known as Cardinal Energy Storage East LLC, is associated with Nebraska-based Tenaska Capital Management, a company renowned for its extensive portfolio of power generation and infrastructure assets. The first step for Cardinal Energy Storage is to obtain a right-of-entry permit from the Memphis and Shelby County Port Commission, which is part of the EDGE oversight.

What’s the Plan?

Over the next four years, Cardinal Energy Storage will explore whether it is feasible to build a battery power storage facility on the property. This facility would not only help stabilize the local power grid but also contribute to broader clean energy goals across the nation. If they proceed, they can enter into a 20-year lease with options to extend for an additional five years.

The financial aspects are quite interesting too. Initially, the rent for the lease would be just over $609,000 a year, with increases based on the usage of the land. The annual rent will also see a base increase of 3% each year. Plus, the LLC retains the option to sell the lease to a company valued at over $100 million that specializes in operating battery facilities.

What Does This Mean for Memphis?

If the project moves forward, it could mean serious financial benefits for EDGE and Memphis as a whole. The right-of-entry permit and potential lease are scheduled for consideration at a special meeting on Friday, Oct. 4—mark your calendars! If approved, the combined new rent proceeds could generate millions of dollars for EDGE to allocate as they see fit.

Joann Massey, the president and CEO of EDGE, shared her vision with the Memphis business community. She emphasized how the funds generated from this project would be reinvested into infrastructure improvements at the Port of Memphis and various EDGE initiatives that benefit the community. “We plan to reinvest the funds into Port infrastructure improvements and EDGE programming to benefit the community,” Massey said.

A Growing Trend in Energy Storage

Battery storage facilities have gained traction nationwide, as power companies seek to enhance grid stability while meeting their clean energy commitments. This push toward renewable energy and storage solutions is not just a trend; it’s become a necessity in modern power management.

Collaboration in the Pigeon Industrial Park

Interestingly, the Pigeon Industrial Park, where this project is proposed, is already home to several notable companies, including xAI and Nucor Steel. In fact, xAI is also seeking its lease within the industrial park and will be discussed during the upcoming EDGE meeting. This creates an electrifying atmosphere of growth and collaboration in the area!

Looking Ahead

As we await the outcome of the upcoming EDGE meeting, it’s clear that Memphis stands on the cusp of exciting developments in the energy sector. With potential new jobs, financial boosts, and cleaner energy resources on the horizon, there’s much to look forward to!

Stay tuned for updates on this promising project that could greatly enhance Memphis’ energy landscape and economy!