Natural gas is playing an indirect, but clear role for the nation’s two largest wind power project developer/operators. They not only draw on some of the wholesale gas market’s volatility, but also on the location-scouting demands of underground gas storage facility development to find wind buyers and sites. One of the two companies is combining its wind and gas storage operations in one energy development business unit.

Florida-based FPL Energy is the nation’s largest wind project developer and its partner in some of those projects is the second biggest, ScottishPower’s Portland, OR-based PPM Energy, the UK-based holding company’s North American merchant energy development unit. PPM’s two major focuses are on developing both new wind projects and underground gas storage facilities.

“The two businesses — wind and gas storage — make a lot of sense together,” said PPM’s Jean Wilson, vice president of development. “They are both location oriented, and they both are kind of niche businesses. The number of players in gas storage is relatively small, and there are not a lot of players who know the business. Wind has some of the same elements.”

Meanwhile FPL’s Florida-based spokesperson indicated that volatility in the wholesale gas markets is sparking more interest in wind power. While it may not result in more projects if there is not an extension of the current federal Production Tax Credit (PTC) now buried in the energy bill being debated by a Congressional conference committee, the price volatility is causing more potential customers to “kick the tires,” the FPL spokesperson said.

PPM Energy’s Wilson suggested that now that her company owns all or parts of natural gas storage projects in Alberta Canada and Texas, having bought Aquila Katy Storage facility, PPM is actively looking for new greenfield underground storage facilities in the Rockies and elsewhere. PPM currently is looking at four possible locations and may have something to announce in the new future, Wilson said.

In contrast, Wilson said her firm is not looking at any new natural gas-fired power plants to invest in currently, preferring to focus on wind power exclusively.

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