- Published 2026.10.10 10:41
Secures rights to 100MW energy storage project in Illinois
State's 3,000MW deployment policy creates first-mover opportunity
Construction after 2028, focuses on easing local environmental concerns
Key Capture Energy (KCE), the US energy storage systems (ESS) subsidiary of SK Innovation E&S, is moving forward with a 100MW battery project in Illinois. Having secured the project rights with support from the state's strong clean energy policies, the company has begun local outreach to improve community acceptance, the biggest hurdle ahead of construction in 2028.
According to industry sources and local media outlet Vandalia Radio on Oct. 10, Key Capture Energy attended a briefing hosted by the Fayette County Chamber of Commerce in Illinois on Oct. 9 and presented details of the 'KCE IL 2' project to local residents and businesses. Key Capture Energy is developing a 100MW battery facility near Ramsey, Illinois, to be connected to the local 138kV transmission grid.
Illinois is considered one of the fastest-growing markets for energy storage in the United States. The state government has legislated a goal of commercially operating a cumulative 3,000MW of energy storage by 2030 to address grid instability caused by the closure of coal and natural gas power plants.
In the state's first energy storage procurement auction, Key Capture Energy won two 100MW projects, including KCE IL 2. According to local industry sources, competition was fierce in the Ameren transmission zone where the project is located, with 520MW of projects bidding against a state allocation of 450MW. Key Capture Energy beat local competitors such as McDuff Battery Storage, and the average winning bid in the zone was reported at $110.52 per megawatt-hour (MWh).
Despite winning the project rights amid intense competition, community support remains a key hurdle before commercialization. The Illinois state government has amended laws to prevent local governments from arbitrarily blocking such facilities to accelerate the energy transition, and Fayette County, where the project is located, also revised its ordinances in August 2026 to align with state standards. However, concerns among nearby residents about environmental pollution and resource monopolization from large-scale battery facilities remain high.
Key Capture Energy is seeking a breakthrough through proactive transparency. Erica Glenn, senior development manager at Key Capture Energy, who attended the local briefing on Oct. 9, and Chris Linsmeier, a Key Capture Energy representative who spoke with local media, emphasized that the facility's small footprint means it will have minimal impact on local resource use or the environment. They also appealed for community support by highlighting that the project will bring tangible cost savings to the entire county.
Construction of the project is scheduled to begin after 2028. With ample time remaining to obtain permits and pass the grid interconnection review by the local grid operator, the strategy is to minimize community complaints from the early stages of the project. Whether Key Capture Energy can demonstrate concrete economic benefits through further local engagement and pass the interconnection review without delays will be a key indicator of the KCE IL 2 project's success.
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
