Michigan's 100MW Battery Storage Project Set to Transform Pennfield Township

Tonight, Tuesday, December 2, 2025, at 6:00 PM, Pennfield Charter Township could become the focal point of Michigan’s energy transition. The Planning Commission will host a presentation by Key Capture Energy (KCE), the U.S.-based battery storage developer, unveiling plans for a utility-scale 100-MW, 4-hour Battery Energy Storage System (BESS). The session will include a company introduction, an “Energy Storage 101” briefing, and a public Q&A, offering residents and local officials a first look at a project poised to reshape the township’s landscape—and the state’s approach to grid reliability.

Founded in 2016 and registered in Delaware, KCE specializes in developing and operating utility-scale Battery Energy Storage Systems (BESS). The company, acquired in 2021 by South Korea’s SK Energy, currently operates 14 projects primarily in Texas and New York and is regarded as one of the most experienced BESS owner-operators in the United States.

The Pennfield Proposal: KCE MI 2

The proposed Pennfield facility, referred to as KCE MI 2, is planned for approximately 8 acres of farmland along East Avenue North, adjacent to an existing Consumers Energy substation. KCE representatives, including Rashay Khripunova and Ben Gorman, have been actively engaged with Township officials and requested the December meeting to provide information to the public.

The BESS is designed to stabilize the electric grid in Michigan, a state uniquely classified as an “electrical peninsula.” The system stores electricity during periods of low demand, such as midday or overnight, and discharges energy during short-duration demand spikes, such as morning and evening peaks. KCE employs Lithium-Iron-Phosphate (LFP) chemistry, widely recognized for safety and environmental advantages, including the absence of heavy metals.

The proposed project is planned at 100 MW capacity with a 4-hour duration, consistent with typical utility-scale installations. Construction is anticipated to begin in early 2027, with commercial operations expected by winter 2028.

Local Context and Safety Measures

The proposal has drawn scrutiny from residents and officials. Pennfield Supervisor Kevin Leiter described the development as a “big black blob” on farmland. He also noted that the Township has limited authority to reject the project outright, as KCE could appeal directly to the state for a permit. Environmental concerns have also been raised, particularly given the site’s proximity to aquifers serving Battle Creek.

To address these issues, the Township adopted Resolution 24-72 on November 12, 2024, establishing comprehensive local standards for BESS projects:

• Dwelling Setback: A minimum of 300 feet from the nearest point on the outer wall of occupied buildings on non-participating properties.

• Aesthetics: Limits on facility size, dark-sky-compliant lighting, and mandatory tree plantings to screen the facility from view. The Planning Commission may require additional measures to minimize visual impact.

• Noise: Maximum sound levels of 55 average hourly decibels at neighboring dwellings.

• Decommissioning: Financial assurance, such as a bond or irrevocable letter of credit, to cover removal at end-of-life or abandonment, reviewed and updated every five years.

• Water Management: Minimal impermeable surfaces and effective on-site stormwater management, with stricter requirements in wellhead protection areas.

Project Size, Technology, and Business Model

The KCE MI 2 project is a standalone battery storage facility, covering roughly 8 acres without attached solar or wind generation. It is designed as a 100-MW, 4-hour BESS, the industry-standard scale for utility applications aimed at grid stabilization.

Core Functions:

1. Charging: Draws power from the grid during periods of low demand, typically midday or overnight, when electricity is cheaper.

2. Discharging: Supplies energy during peak demand windows, such as morning and evening spikes.

3. Grid Stabilization: Helps utilities balance supply and demand, reducing reliance on expensive peaking generation.

4. Economic Efficiency: Maximizes use of lower-cost electricity, contributing to overall energy cost reduction.

Revenue Model: KCE plans to enter into a long-term agreement with a utility, such as Consumers Energy or DTE, providing revenue certainty through fixed payments over the project’s operational life.

Economic and Community Impact

The Pennfield BESS project is expected to generate meaningful local economic benefits:

• Property Taxes: Approximately $15–20 million over 20 years.

• Host Community Agreement: $200,000 to the Township, consistent with the ordinance requiring at least $2,000 per megawatt.

• Construction Jobs: 30–50 jobs during the build phase.

• State Grants: Eligibility for up to $500,000 in additional funding.

As Michigan continues to expand its energy storage capacity to support renewable integration and grid reliability, projects like KCE MI 2 highlight the intersection of advanced technology, regulatory oversight, and local economic development, providing a model for utility-scale BESS deployment nationwide.