Questions and Answers

Peregrine Energy Solutions, an American independent power producer with a focus on utility-scale energy storage, owns the Rogers Draw project. The company operates across 13 states with a portfolio of 53 projects. Energy storage projects must meet rigorous codes and standards to operate, and Peregrine's standards exceed requirements in multiple key aspects.

Peregrine is backed by AB CarVal, a global alternative investment manager and part of AllianceBernstein's Private Alternatives business, with approximately $20 billion in assets under management across various credit strategies. Additionally, Peregrine is supported by KKR, a leading global investment firm founded in 1976, with $553 billion in assets under management.

Peregrine analyzed 60,000 substations across the U.S. grid over a three-year period and found Harper to be one of the weakest links on the grid, with heavy congestion and the inability to move power efficiently. In alignment with Texas’ all-of-the-above approach to energy reliability, Peregrine’s findings support the state’s prioritization of energy storage development to prevent future grid outages. Texas has embraced a diverse energy strategy, that includes battery storage, to strengthen grid resilience and ensure reliability under all conditions. The proximity to the substation allows for efficient transmission, enhancing grid reliability by providing power to the grid—including the surrounding area—in the event of power loss.

Energy storage facilities consist of rows of rechargeable batteries housed in self-contained, interconnected storage units and operate by drawing surplus energy from the local power grid during periods of low usage and storing it for later distribution back into the grid during peak demand.

The Rogers Draw Energy Storage Facility is a proposed 145-megawatt (MW) battery energy storage system (BESS) located off FM 2093 in Harper, TX. Its purpose is to enhance the reliability and consistency of energy supply in a region that experiences significant fluctuations in energy demand and costs. This is achieved by storing and discharging energy as needed. The project will have the capability to power approximately 120,000 homes at full capacity.

Yes, proximity to substations allows for efficient transmission, enhancing grid reliability by providing rapid and stable power delivery directly into the grid, especially to surrounding residential and commercial areas during outages. Being close to substations also reduces transmission losses and facilitates quicker response times during emergencies. Additionally, proximity supports faster restoration of service, improved coordination with local utility operations, and streamlined communication with emergency responders, ultimately ensuring greater resilience and safety for the community.

At Peregrine, safety is our highest priority, and we understand that fire safety is a top concern for the community. That’s why we’ve gone above and beyond industry standards to ensure that our Rogers Draw facility is designed with the most advanced fire protection measures available today. We have extensively reviewed all applicable fire safety codes, participated in national fire safety committees, and studied every fire incident to date to create a best-in-class fire protection standard. This standard prioritizes early detection, real-time monitoring, predictive analytics, and multiple layers of redundant safety features to prevent and mitigate fire risks.

Our Rogers Draw facility incorporates 12 layers of fire protection focused on prevention, detection, control, and emergency response. In the rare event of an incident, our system immediately notifies emergency responders and provides them with clear, real-time information through a Fire Command Center located at the property boundary. This ensures that first responders have the data they need in an easily accessible and understandable format to act quickly and effectively.

Additionally, we plan to partner with Wärtsilä, a global leader in energy storage with an unmatched safety record. Our design goes beyond current National Fire Protection Association (NFPA) 855 and International Fire Code (IFC) standards, integrating extra layers of protection to provide peace of mind to the community. We are committed to transparency and collaboration with local emergency personnel, providing them with ongoing training and familiarization programs to ensure they are well-prepared. Our team and technology have maintained a 100% safety record, and we are dedicated to keeping it that way.

No, the Rogers Draw facility will not emit any smell, smoke, or noise pollution typically associated with industrial facilities. There will also be no discernible impacts on traffic once construction has been completed.

The facility will be equipped with redundant fire suppression systems, including (2) 30,000-gallon water supplies dedicated to fire emergencies. This system is designed to prevent any contamination of groundwater. Through the completion of the design phase of the facility, Peregrine will provide a Firefighting Water Risk Assessment and Firewater Discharge Management Plan to address any risk mitigations required for groundwater protection. Additionally, Peregrine is scheduled to offer comprehensive training to local first responders to ensure proper handling of any potential incidents. Peregrine will be providing third-party training to both the Harper Volunteer Fire Department, and the Fredericksburg Fire & EMS Department.

The equipment planned for the Rogers Draw Energy Storage facility is rated for Category 5 hurricane conditions, and the site is located outside of the 100- and 500- year flood plains. The Rogers Draw project is uniquely designed to operate during extreme environmental conditions such as extreme temperatures, high winds and water, dust and corrosion, and is built to remain operational and reliable during adverse weather events.

Peregrine will provide comprehensive training to the Harper Volunteer Fire Department and Gillespie County Emergency Services. Additionally, the facility will grant access to (2) 30,000-gallon on-site water cisterns for fire suppression, enhancing local emergency response capabilities. Peregrine will implement an Emergency Response Plan developed collaboratively with local Fire Departments and Emergency Services to ensure coordinated and efficient incident management.

> 1 SECOND

• Automatic Response Functions: Millions of data points are measured every second, allowing an instantaneous safety shutdown to be automatically triggered, cutting power and disconnecting from the grid.

• Emergency Response Team Notification: Immediate notifications are triggered and sent to our 24/7 remote monitoring team, a local Emergency Response Coordinator, Peregrine's operations team, and local fire communications network, which initiates mobilization for the fire department and other first responders.

> 30 SECONDS

• Plant Emergency Shutdown: The control system automatically performs an emergency shutdown of the entire site if needed and cuts power to all electric equipment to mitigate the risk of fire.

> 15 MINUTES

• Remote Operation Support: Our remote monitoring partner is engaged and coordinating with the local incident response plan with local firefighters and emergency personnel on-site.

• Manual System Shutdown: If the system fails to automatically or remotely shut down, first responders can perform a manual safety shutdown.

• Fire Hydrant Loop: The facility will have multiple fire hydrants on-site, enabling firefighters to deploy a nearby water source should they operate outside of the project site.

> 1 HOUR

• Local Operations Response: No matter the time of day, our Emergency Response Coordinator will be present on-site to support the incident response.

Peregrine will implement an Emergency Response Plan developed collaboratively with local Fire Departments and Emergency Services to ensure coordinated and efficient incident management. The facility includes systems for detection, control, and notification to the emergency response team in the event of an incident.

The project is set to contribute $30 million in local funding to Gillespie County, Texas. Peregrine prioritizes community investment, supporting local initiatives, infrastructure, and creating opportunities for local contractors.

The Rogers Draw Energy Storage project is not receiving any local Gillespie County or State of Texas tax abatements. This project is privately funded and does not rely on government subsidies or incentives. Its development is driven by market-based solutions to enhance grid stability and improve energy reliability.

The facility is designed to operate without emitting pollutants or causing noise disturbances, minimizing any potential negative impact on neighboring property values. The planning includes setbacks from neighboring properties and retaining as much native vegetation as possible to screen the facility from the roadway and neighboring properties.

In Texas, there are 95 operational energy storage projects, with an additional 40 projects, similar in size to the Rogers Draw project, coming online in 2025. These projects are being installed all over the state in varying locations between urban and rural communities.

Battery Energy Storage Systems are not new, but the technology has rapidly changed and improved.  Peregrine has partnered with a global energy storage leader that holds a 100% safety record in their BESS and uses software that was developed here in the United States. The technology, standards, and certifications have been vastly improved compared to other projects that have been operational over the last few years. BESS suppliers now also complete destructive Large Scale Fire Testing (LSFT) that show that even under extreme scenarios, fires do not spread from one container to the next. The four major differences can be categorized as battery chemistry, system design, fire suppression system, and battery supplier:

Battery Chemistry (NMC vs. LFP)

Recent battery fires have used a Nickel Manganese Cobalt (NMC) battery chemistry.  NMC batteries can pack more energy in smaller space but are a more volatile chemistry which increases the risk of thermal runaway and fires.  A large majority of thermal runaway events have occurred at facilities that use NMC chemistry. The Rogers Draw project (and most current systems) use Lithium Iron Phosphate (LFP or LiFePO4) chemistry.  LFP batteries aren’t as power dense but are far safer.  Most energy storage facilities now use an LFP chemistry.

System Design

Previous facilities consisted of exposed battery racks packed within a series of warehouse-style buildings.  Placing batteries inside a building increases risk as it creates a much larger volume of space for flammable gas to accumulate in.  It also increases the chance that thermal runaway propagates across multiple units within the same building space.  Finally, if an event occurs, it is much more difficult to determine the nature of the problem and fully control the fire without sending humans into the building.  In this case Emergency Responders used drones with cameras to enter the facility but chose to keep all personnel outside. The Rogers Draw project (and most current designs) use Outdoor-rated, non-occupiable containers.  This means no entry into the container is required to service the battery.  The Wartsila system also uses a standard (20’x10’x8’), fire-rated enclosure to further reduce the chance of heat and flame spreading in the case of a fire.

Fire Suppression System

Other facilities have used a water sprinkler system as their primary means of fire control.  Research has shown that these sprinkler systems are not very effective at preventing thermal runaway.  In fact, they tend to prolong the duration of a runaway event, prolonging the need for fire and emergency services personnel. In contrast, Rogers Draw uses redundant gas suppression and venting systems to mitigate the risk of explosion if a thermal runaway event were to occur.  This will allow the fire to consume its fuel supply (the battery) and diminish to a safe state within hours.  This reduces overall risk and also reduces the burden on responding Emergency Responders.

The Rogers Draw facility will be using industry-leading equipment from the Finnish company Wartsila, a manufacturer founded in 1834 with over 17,000 employees worldwide and 79 GW of installed engine power facility capacity in operations. Wartsila has over 3.5GW across 130 energy storage projects in operations worldwide and have 0 fire incidents to date. The design and testing of the equipment not only meets all UL, NFPA, and IFC code requirements, but go above and beyond to ensure absolute safety for anywhere their products are installed. All of the previous incidents that have occurred at energy storage facilities have been evaluated by our team and are mitigated through layers of redundant safety protection.

The Wartsila system software solution has been proudly developed, tested, and continuously monitored by the engineering team based out of Virginia, USA. The systems undergo rigorous testing and validation procedures to ensure functional safety and cybersecurity measures effectively mitigate all potential failure risks.