Sunnyside Energy Park, LLC

Sunnyside Energy Park, LLC

Executive Summary


Overview:
  Sunnyside Energy Park’s (Sunnyside) primary objective is to utilize cutting edge green technologies and PA’s vast natural gas reserves to provide economic growth and job opportunities to a depressed region.  This will be accomplished by leveraging symbiotic relationships among tenants ensuring energy independence and providing clean, sustainable, and marketable products and services to local, regional, and national markets.

 

Sunnyside is a new energy-focused industrial park, located on 376 acres of rural land in Ringgold Township, Jefferson County, PA, including a 26-acre lake and access to a large conventional natural gas field.  The initial phase is currently underway through the development of 6 core businesses expected to be operational within 1-2 years and includes an energy and utility service provider on-location via the park’s energy co-op.  Additional opportunities exist for 40+ tenant businesses, to include non-energy related operations, to set up in the remaining space.

 

Mission Statement: The Sunnyside Energy Park mission is to advance and promote innovative uses for PA indigenous natural gas in the transportation, agriculture, combined heat & power (CHP), virtual pipeline, energy, and methane derivatives markets by integrating producers with small-scale production of compressed natural gas (CNG), liquefied natural gas (LNG), gas to liquids (GTLs) production and power co-generation.  The park will focus on implementation of vertical integration from wellhead to finished products and leveraging best practices for by-products.  It will create a sustainable and profitable market for stranded natural gas supplies and provide linkages to resource-isolated markets where conventional transportation and/or utilities are not readily available.

 

Goals: Sunnyside Energy Park will provide a sustainable and replicable business model that benefits the region both economically and environmentally by demonstrating emerging technologies, promoting clean and efficient industries, capitalizing on indigenously-sourced resources, re-purposing existing bi-products, and minimizing environmental impact of various industries while creating the supporting workforce from locally sourced hiring practices (permanent jobs). The “Keystone Principals of Business” will provide the foundational building blocks for this unique undertaking.

 

Benefits:  The benefits of the Sunnyside plan include utilizing clean and efficient energy sources, enhanced profitability through vertical integration and an indigenous supply chains, and generating economic viability for stranded Upper Devonian natural gas resources while preventing obsolescence and abandonment.  Further, Sunnyside will enhance the local economy by creating jobs and promoting industry in Jefferson County.  Finally, Sunnyside will provide a replicable and scalable model that can be recreated in other geographies to further decrease US dependence on foreign energy sources and work toward energy independence as a nation.

 

Current Progress & Symbiotic Relationships: A team of seven investors wholly owns the overarching business of Sunnyside Energy Park, LLC, and is well into the process of developing the park.  The 376 acres of land has been purchased and contracts are in place for an essentially unlimited natural gas supply.  Developments such as road upgrading, gas well improvements, and site clearance are underway.  In addition, six core businesses are in varying stages of setup, with the first scheduled to be operational by summer of 2017.  This business, CH4, has secured funding for and is currently building both CNG and LNG equipment to produce alternative fuels for vehicles and numerous other applications.  The byproducts of waste heat and CO2 generated in this process will be sold to two greenhouses, one already located next to the energy park and one currently in the permitting process to be a tenant of the park.  Beatty Oil & Gas owns part of the natural gas field under and around the park and has secured agreements for contractually unlimited gas supply as the park grows.  It will supply natural gas for heat and to fuel clean, efficient micro-turbine technology to generate electricity on-site for all tenants.

 

Two more cutting edge technologies, a gas-to-liquids plant and an innovative brine water treatment plant, are also committed to operating at Sunnyside.  The gas-to-liquids plant is a smaller, less expensive, and more scalable version of a cracker plant that uses natural gas as the raw material to create a synthetic gas derivative that is then be made in to numerous marketable products.  The brine water treatment plant is also a new technology that takes brine water from oil and gas wells and rather than diluting it as old technology dictated, it treats it more efficiently by separating out the salt and heavy metals.  The result is clean distilled—not diluted—water and seven marketable products such as road salt, sodium chloride, calcium chloride, and by-products for the chemical industry.   They will be able to provide clean distilled water as one of their by-products for use by the LNG, GTL, and methanol facilities and the nearby greenhouses and will treat brine water more cleanly and efficiently than ever before.

 

Finally, in addition to the opportunity that exists for many more businesses to move into Sunnyside, there are already several other businesses interested in moving in after the first six are in place, such as a security company, a transportation company, and an aqua-culture company that uses innovative methods for fish farming.  Further details on the intricacies of the interdependencies and associated benefits of these businesses relationships can be viewed in our full presentation, if desired.

 

Key Elements for Success:  Sunnyside is strategically located in close proximity to both the raw materials needed for the core businesses (natural gas, brine water, fresh water, land, etc.) as well as the key markets and transportation infrastructure (rail and highways) needed for success.  In particular, the vast, sustainable, and affordable supply of natural gas will provide ample resources necessary for the utility company to provide both power and heat to the other tenants, as well as the raw material for the CNG, LNG, GTL’s, and H2O businesses.  In addition, the rural location of the park minimizes regulatory hurdles and, further, the State and local regulatory agencies are aware and supportive of the park.

 

The Sunnyside owners each have proven track records of success in their respective industries and also key relationships with national and regional industry partners with diverse expertise.  The park will provide opportunities for a diverse portfolio of other businesses to operate at Sunnyside to include energy, services, agriculture, and others, bringing much needed economic opportunities to the area.  Finally, the first core businesses, as well as additional future businesses, have symbiotic relationships that utilize waste products from one as raw materials for another to help eliminate waste and create a green, efficient energy-focused industrial park.