5-Stage Development Plan: Building the Future of Energy at Powerhouse

The global shift towards sustainable energy isn't a single leap but a series of deliberate, strategic steps. For any energy company, navigating this transition requires a clear and actionable roadmap—one that balances today's energy needs with the urgent goal of a carbon-neutral future. A true plan for the future of energy involves more than just adding renewables; it requires a holistic strategy to make existing systems cleaner, integrate new technologies, and build a diversified, resilient energy portfolio.

At Powerhouse Energy Services Inc., we have developed such a strategy: our comprehensive 5-Stage Development Plan. This plan is our blueprint for achieving carbon neutrality by 2030 and positioning ourselves as leaders in the energy transition. It is a methodical, multi-faceted approach that leverages our current assets, embraces cutting-edge technology, and builds a sustainable energy ecosystem from the ground up. This article will walk you through each stage of our plan, showing how we are building the future of energy, one strategic step at a time.

Stage 1: Optimizing Core Assets for Maximum Efficiency

The foundation of any successful energy transition is to make the energy we produce today as clean and efficient as possible. The journey to net-zero begins with optimizing what we already have. Stage 1 of our plan focuses on enhancing the performance and dependability of our existing cogeneration (Cogen) power plant at the Placerita oil field.

Our current operations utilize two GE LM2500 power units to supply electricity to the California grid. In a prime example of energy efficiency, the waste heat from this process is captured and converted into steam for our steam-enhanced oil recovery (EOR) operations. This Combined Heat and Power (CHP) system is already highly efficient, but we are taking it further.

We are currently implementing significant upgrades to these units, including installing air inlet chillers to boost efficiency and increase megawatt output. We are also performing a zero-hour reset on our second unit to restore it to peak performance. This focus on optimization ensures we generate the maximum amount of power from every unit of fuel, reducing overall consumption and minimizing our carbon footprint from day one.

Stage 2: Implementing Advanced Carbon Capture Solutions

With a highly efficient foundation in place, the next logical step is to directly address the emissions from our operations. Stage 2 is dedicated to the implementation of Carbon Capture, Utilization, and Storage (CCUS) solutions. CCUS technology is a critical tool for decarbonizing traditional power generation, acting as a bridge to a fully renewable future.

We are actively engaging expert firms like Cornerstone Engineering and Geosyntec to conduct detailed engineering studies for CO2 sequestration on our site. Our plan involves evaluating two primary pathways for the captured CO2:

1. Carbon Sequestration: Injecting the CO2 into deep, secure geological formations for permanent storage.

2. CO2-Enhanced Oil Recovery (EOR): Using the captured CO2 to enhance oil production while simultaneously storing it underground.

By leveraging government incentives like the Federal 45Q Tax Credit, this stage is not only environmentally responsible but also economically sound. It represents a significant step toward our carbon-neutral goal and showcases our commitment to adopting proven, impactful climate technologies.

Stage 3 & 4: Expanding Infrastructure for Future Demands

A forward-thinking energy plan must anticipate and prepare for the needs of tomorrow. Stages 3 and 4 of our development plan focus on expanding our physical and energy infrastructure to support future growth and technological integration.

Stage 3: Commercial Development: We plan to develop portions of our 1,300-acre property for commercial clients, particularly high-energy users like data centers and movie studios. We already have a letter of intent for a 10 MW Power Purchase Agreement (PPA) with an adjacent studio development. This creates new revenue streams and establishes our site as a hub for sustainable industrial growth, powered by cleaner, more reliable energy.

Stage 4: Rebuilding for a Hydrogen-Ready Future: This stage involves rebuilding a decommissioned power plant on our property. Critically, we will be installing modern GE7E turbines. These state-of-the-art turbines are "hydrogen-ready," meaning they can run on a blend of natural gas and hydrogen, and eventually on 100% green hydrogen. This strategic rebuild prepares our core infrastructure for the clean fuels of the next generation.

Stage 5: Pioneering the Green Hydrogen Economy

The final stage of our plan is the most transformative. Stage 5 involves the construction of on-site hydrogen and oxygen plants, marking our entry into the green hydrogen economy. This initiative creates a fully integrated, self-sustaining energy ecosystem.

The green hydrogen will be produced using power from an expanded solar footprint on our property, a project supported by our collaboration with Hanwha's Q Cells division. This carbon-free hydrogen will then be used in several ways:

• Blended into our turbine fuel mix to further decarbonize our power generation.

• Supplied to an on-site electric and hydrogen fueling station to support the decarbonization of the transportation sector.

By producing our own green hydrogen, we close the loop on our sustainable energy system. This final stage solidifies our transition from a traditional energy producer to a diversified, carbon-neutral energy company of the future.

Your Partner in Building a Sustainable Future

Our 5-Stage Development Plan is more than a corporate strategy; it is a clear, actionable commitment to leading the energy transition. From optimizing current assets and capturing carbon to embracing the potential of green hydrogen, each stage is a deliberate step toward a cleaner, more resilient energy future. This plan demonstrates that environmental responsibility and economic growth can, and must, go hand in hand.

At Powerhouse Energy Services, we are not just planning for the future; we are actively building it. We invite you to join us on this journey.

Are you looking for a forward-thinking partner to help you navigate the complexities of the energy transition?

Contact Powerhouse Energy Services today to learn more about our vision and how our sustainable energy solutions can help you achieve your goals.