RIVERBANK Project - Frequently Asked Questions

1. Question: Who is Riverbank Power?

Answer: Riverbank Power is a company developing a portfolio of five or more 1,000 MW underground alternative power generation facilities located in the northeastern United States. Riverbank’s vision is to become the leading independent producer of underground alternative power generation facilities in North America within five years.

2. Question: What is underground hydro-generation?

Answer: Riverbank’s Aquabank™ is an alternative energy power generation facility that produces energy from turbines located underground near a suitable water source.  Each Aquabank™ will have an installed capacity of 1,000 MW and produce enough electricity to power 300,000 homes.

The Aquabank™ system temporarily diverts water, using the force of gravity, down 2,000 foot shafts to an underground powerhouse, where it travels through four turbines, thereby creating hydro-electric power. This newly generated power is then harnessed by a transformer and sent to the power grid to help accommodate peak energy consumption periods.

Once through the turbines, the water is then temporarily stored in reservoirs at approximately the same depth as the powerhouse before being pumped back to its original source using surplus power from traditional and renewable power sources.

This new power generation will provide much needed peak capacity power at a time when demand for that power is on the rise.

To see how Aquabank™ works, visit the Riverbank web site at http://www.riverbankpower.com and watch our video demonstration.

3. Question: What is peak energy?  Why is it so important to find alternative ways to produce peak energy?  And, how does Aquabank™ provide a solution?

Answer: The use of electricity fluctuates.  Energy use is generally higher during daylight hours and spikes dramatically above normal use twice throughout the day.  Normal energy use is met by what is called base load power.  This base load power is the amount of electricity that is always needed and is typically produced by large nuclear and coal energy facilities that run all the time.  The extra energy needed during peak times is produced by facilities that run only when they are needed.  These facilities are called peakers.  There are two vital reasons why is it so important to find alternative ways to produce peak energy:

First, peakers tend to be some of the most polluting sources of electricity.  These facilities run almost exclusively on carbon emitting fossil fuels such as coal and petroleum.  Furthermore, these facilities require a significant amount of time to start-up before they can deliver electricity to the grid.  During these start-up periods the facilities produce pollution in the form of particulate matter and emit carbon in the form of greenhouse gasses without the direct payoff of useful electricity.  However, Aquabank™ starts immediately and delivers electricity to the grid without the harmful particulate matter or greenhouse gasses.

Second, new forms of green energy, such as wind, are intermittent and are rarely produced during periods of peak demand.  For example, the wind blows on its own schedule and cannot be increased or decreased based on the demand for electricity, making the system inherently inefficient.  Aquabank™, however, can act as a giant battery, using wind energy created at night to produce hydropower the next day.  By making the wind a useful on-demand product we will create additional market opportunities for clean, intermittent energy, which will lead to the creation of new renewable energy sources.

Please view our video for more information on this topic:

http://www.riverbankpower.com/page.asp?id=6&name=AquabankOverview 

4. Question: How much energy will each of your facilities produce?

Answer:  Each new facility will consist of 1,000 MW of installed capacity that will generate daytime peaking capacity for six to eight hours – enough to power 300,000 homes.

5. Question: How does Aquabank™ produce alternative energy?

Answer: Aquabank™ produces alternative energy that can replace or supplement traditional peak energy producers that rely on fossil-fuel sources such as coal, oil and natural gas. The energy produced when the plant is operating during peak hours will reduce the reliance on these polluting and carbon emitting sources.

During off-peak hours Riverbank will make every effort to make the project 100 percent green by procuring power from renewable energy sources, such as wind energy, to pump the water back up.

Even if Riverbank has to use traditional base-load generation in the off-peak hours, our Aquabank facilities will likely be carbon-neutral and create tremendous environmental benefits.  These environmental benefits include the following:

• A reduced reliance on fossil fuel plants that emit carbon – some of which rank as the most polluting energy producers

• A reduced need for the construction of new fossil generation as energy demand during peak hours grows. Aquabank™ will help states reduce existing carbon footprints

• A vehicle enabling the development of new renewable resources that otherwise would not be developed by procuring energy from renewable sources for off-peak pumping. Aquabank™ effectively becomes a battery for wind power under this scenario.

• A new class of “green collar’ jobs and new tax revenues for the host communities

6. Question: Does Riverbank’s underground pump storage use more energy than it produces?

Answer: Like all pump storage applications, Aquabank™ represents a net load on the system. The major benefit of this technology is that it can convert unwanted energy at night [off-peak] into a needed product for delivery the next day. This conversion has tremendous benefits to the system operators who are dealing with high prices due to transmission congestion and will enable new clean energy sources to be developed.

7. Question: How will Aquabank™ promote the development of new, renewable energy sources such as wind?

Answer: Electricity is the only commodity that has to be used when it’s produced.  The wind, however, blows on its own schedule and can not be increased or decreased based on the demand for electricity, making the system inherently inefficient and limiting the number of wind parks that can be added to the grid. 

Aquabank™ can take wind power created while the demand is low and use it to pump water back to the surface – allowing for new clean energy to be produced when it’s actually needed. By creating power at peak time, we can replace our current carbon based peak power producers with clean, emission free energy.  In essence, Aquabank™ can act as a giant battery, using wind energy created at night to produce hydropower the next day.  More market opportunities will lead to the creation of new renewable energy sources.

8. Question: Does underground alternative power generation negatively impact the temporarily diverted water?

Answer: We believe there will be minimal effects on the quality and temperature of the diverted water. Of course you won't have to take our word on it, we will have extensive studies completed to confirm our beliefs.

9. Question: How much water will be diverted?

Answer: We estimate about 215 m3 per second.

10. Question: Does underground alternative power generation have a negative impact on fish or fish habitats?

Answer: We believe there will be minimal effects on the fish and fish habitats during the operation of the facility. Again, extensive studies will be completed to confirm our beliefs.

11. Question: Does Aquabank™ produce Green Energy?

Answer: Aquabank™ produces alternative energy that can replace or supplement traditional fossil-fuel sources such as coal, oil and natural gas. A portion, or all of the energy output of an Aquabank™, can be considered green if green energy such as wind can be procured for use during off-peak hours.

12. Question: If Riverbank uses electricity from traditional sources, can its output be considered green?

Answer: Aquabank™ is an alternative energy facility that promotes the development of intermittent renewable energy like wind and displaces carbon emitting peak energy generators.  The greenness or carbon footprint of an Aquabank™ facility depends on the type of energy purchased during off-peak hours.

If we purchase green forms of energy during off-peak hours, the Aquabank™ facility will be 100% green. 

If we purchase from a portfolio of traditionally generated energy and new renewable sources during off-peak hours, the Aquabank facility will either be carbon-neutral or carbon-negative.  This will depend on the type of electricity available during off-peak hours. 

We will seek to procure green power whenever possible.

13. Question: Has a system like this been constructed and operated elsewhere?

Answer: Pumped storage hydro facilities have been in use for over a century.  However, our Aquabank™ projects are a unique adaptation of two proven technologies: the pumped storage concept and deep mining. Our projects will be the first of their kind to be constructed completely underground.

14. Question: What are the environmental benefits to these projects?

Answer: Environmentalists and the development community should both embrace these projects. These projects will:

• Be an alternative to current polluting peak energy producers

• Promote the reliable development of additional renewable resources such as wind energy by acting as a giant battery for these intermittent sources of power

• Minimize impact on the view shed and surrounding environment by existing almost entirely underground.

• Create a new class of green-collar jobs

15. Question: Will these projects be financed with taxpayer dollars?

Answer: These are privately funded projects.  Our lead investor is Blackrock®, which is a premier provider of global investment management, risk management and advisory services to institutional and retail clients around the world. As of December 30, 2008, Blackrock’s assets under management totaled $1.31 trillion.

16. Question: When do you expect to commission your first underground alternative power generation facility?

Answer: We expect to commission our first facility in 2014. The construction period is estimated to be four years.

17. Question: How does Aquabank™ connect to the grid?

Answer: Riverbank will be working with transmission owners, system operators, and the surrounding communities to investigate the best alternative to connecting to the grid in an effective and safe manner.

18. Question: Does Aquabank™ have any effects to the local aquifer?

Answer: We believe there will be minimal impact to the local aquifer. Sections of the facility that pass through the aquifer will be lined and grouted to isolate it from the underground aquifer. Also, the underground reservoirs are approximately 2000ft below the surface, well below the bottom edge of the aquifer. Studies will be conducted to confirm our beliefs for minimal impact to the aquifer.

19. Question: Is the excavation process similar to a quarry blasting operation?

Answer: No! Excavation of Aquabank™ is a precision operation and very different from tradition open pit quarry blasting. Once below the surface of the ground almost no sound will be heard and no vibrations will be felt.

20. Question: Will the operation of Aquabank™ cause a lot of noise?

Answer: No! The intakes are designed to have a gentle flow into the penstocks. No sucking or turbulent noise will be heard. Also, the noise of the water traveling down the penstocks and into the reservoirs will be attenuated by the surrounding rock and nothing will be heard at the surface.