KCE MI4

Fires at battery energy storage systems are extremely rare. KCE MI 4 will be monitored 24/7/365 and has multiple fail safes in place that can automatically shut off portions of the system (or the entire system) in real time. In the unlikely event a fire were to occur, the system is designed to isolate and constrain the fire to a single rack or container.

The batteries that are installed in battery energy storage systems must pass more rigorous safety and fire tests than batteries in e-bikes or other consumer electronics. These include international and national fire testing and safety codes, namely the National Fire Protection Association (NFPA) 855 and Underwriter Laboratories (UL) 9540A related to fire and thermal events. KCE only works with manufacturers and vendors that meet these codes and standards.

The rate of fires at BESS facilities is extremely low and has decreased significantly in recent years. The chart to the right can help put the extreme rarity of these events in proper context.

We recognize the idea of a fire at this facility is a scary proposition, which is why we take every precaution to prevent fires in the first place. Air quality monitoring of real-world incidents has consistently found that smoke and gases from these fires dissipate quickly and do not present a danger to the public, much like a common structural fire.

The emissions from a battery energy storage fire consist of smoke and gases similar to a standard structure fire or burning a bag of trash, which contains primarily plastics. For KCE's projects, we conduct detailed health risk assessments of such emissions including plume modeling that has shown the public health impacts of such plumes are not significant.

Additionally, recently released guidance from President Trump's Environmental Protection Agency states that after a Moss Landing event in California, "air quality monitoring and sampling occurred during and after the fire and found no risks to public health."

All BESS installed today are equipped with systems that monitor every aspect of the BESS, including voltage, temperature, and a variety of other datapoints. This monitoring occurs in real-time 24/7/365, and is further reinforced by trained human operators who are monitoring the data remotely. If at any time the system detects operating conditions outside of normal, the system automatically adjusts or shuts down all or a portion of the project if needed.

There is absolutely no need for a five-mile evacuation zone. Data demonstrates that the evacuation area for any fire event, in the extremely unlikely case one was to occur, should be 150 feet around the battery project, which would not impact any neighboring properties. Studies and scientific assessment of real- world events by the EPA and watchdog agencies have found that at this distance any smoke is not a threat to public health and is non-toxic to people, plants, and animals.

The project will use Lithium-Iron-Phosphate chemistry, or LFP for short. LFPs fall under the larger umbrella of the lithium-ion battery family. LFP batteries are industry standard and are widely used across the country in utility-scale BESS installations today. LFP batteries do not contain heavy metals.

The batteries used in KCE's systems must pass much more rigorous safety and operational standards than batteries in e-bikes, laptops and other consumer products. This includes national and international fire association testing, specifically the UL 9540A test related to fire and thermal events.

KCE contracted with ERM, a global design, engineering, and environmental consulting firm, to assess the potential risks to groundwater quality associated with the KCE MI 4 Project. A copy of this report has been included in our application for a Special Land Use Permit. The report assessed the existing soil and groundwater conditions of the area surrounding the project.

Existing Conditions: The site is made up of glacial sediments with low infiltration potential and an average groundwater depth ranging from 3.5 to 18.5 feet below the ground surface. The proposed grading and design of the Project ensures a minimum of 3-feet of separation from any groundwater, exceeding local standards for stormwater protection. Based on geotechnical site investigations and boring results, the infiltration rate at the site is low (estimated at approximately 2.6 inches per year) indicating very slow potential for surface water to reach the groundwater table.

Notably, the project is situated more than 800-feet from the nearest private well, significantly exceeding required setbacks.

Project Liquids and Containment Measures: The following table provides additional information on the compounds that will be housed within the battery containers and associated equipment. The compounds and materials used in this equipment are generally similar to those found in electric generation, transmission, and substation infrastructure nationwide - with the primary exception being the battery electrolyte. The electrolyte is a key component that allows the batteries to charge and discharge by conducting ions between the positive and negative electrodes. LFP batteries do not contain heavy metals.

Any liquid in the system capable of producing a spill will include a secondary means of containment. For example, transformers and cooling systems include secondary containment measures designed to capture and store fluids well beyond the volume of material actually stored within the transformer. Additionally, stormwater runoff will be managed through infiltration basins that remain more than 2-feet above the groundwater table.

All operations will comply with local, state, and federal regulations regarding hazardous materials management. A Spill Prevention, Control, and Countermeasure (SPCC) Plan along with a Pollution Incident Prevention Plan (PIPP) will also be developed to address spills.

Conclusion: Given the naturally low infiltration rates, depth to groundwater, and lack of proximity to groundwater wells, the project is unikely to impact the groundwater table. In addition, the compounds or substances housed within project related equipment will be hermetically sealed, have secondary containment measures in case of a spill, are commonly used in everyday modern life, and present negligible risk to the surrounding environment.

KCE MI 4 will be monitored 24/7/365 and has multiple fail safes in place that can automatically shut a component of the system off if needed. Each individual cell is monitored every second and the battery management system (BMS) collects thousands of data points in real time. The system includes thermal and gas detection equipment that atomically turn the system off if something isn't operating correctly. There is also a human monitoring the system remotely reviewing this information, which allows KCE to turn portions of the system (or the entire system) off in real time if something isn't operating correctly. In the extremely unlikely event a fire were to occur, the system is designed to isolate and contain the fire to a single rack or container.

KCE has met with Blendon Township Fire Department and Ottawa County Emergency Management Agency. KCE will continue to meet with and share information about the project throughout the development and construction of the project.

Additionally, KCE will conduct a training with the fire department prior to the project coming online and will offer an annual training - or as requested by the fire department - once the facility has commenced operations. KCE's number one priority is safety, and we are proud of our safety record.

The purpose of our July 29 Open House was to provide early information and gather input before filing the application. To encourage meaningful dialogue with immediate project neighbors, invitations were mailed to property owners within a half-mile radius of the project site. The Township additionally posted notice of the Open House on its Facebook page.

We recognize there is interest from across the community and appreciate the feedback we've received to date. As the project moves forward, we are committed to continued transparency, like this Q&A document.

This project will comply with Blendon Township's Energy Storage Ordinance, including noise standards which limit noise levels to 50dBA at the nearest outer wall of the nearest dwelling located on adjacent nonparticipating property. The closest building to the project is more than 900 feet south of the project. A copy of a Noise Impact Assessment prepared by a licensed third-party acoustician is included with our application for Special Land Use approval.

In its first year the Project is projected to contribute more than $600,000 to Zeeland and Ottawa County school districts through personal property tax payments. Over the life of the Project, current estimates anticipate the project will contribute more than $6.4 million in tax payments toward local education related categories. Additionally, KCE will make a $200,000 Host Community Agreement to the Township, which can be used to support local infrastructure priorities.

KCE is an American company founded in 2016 and legally registered in Delaware, as is common for many U.S.-based businesses. In 2021, the company was acquired by SK, a well-established energy firm headquartered in South Korea. SK has invested in - or partnered with many American companies including Ford Motor Company.

SK's partnership with KCE provides the capital and expertise necessary to develop and operate projects like this one. KCE is an American company, with employees in over 25 states, operating under U.S. laws and regulations.

KCE currently operates 14 battery energy storage projects-11 in Texas and 3 in New York-making it one of the most experienced owner-operators of battery energy storage systems in the U.S. Although KCE does not have operational projects in the Midwest today, our team is actively developing several in Michigan, as well as in Illinois, Indiana, and Minnesota.

For this Project, KCE plans to enter into an agreement with a utility such as Consumers Energy. An agreement with a utility guarantees a fixed payment structure over the life of the project. These types of financial arrangements provides revenue certainty and supports the upfront investment needed to build and maintain the facility.

The status of tariffs on battery components continues to evolve, and their impact can vary depending on specific policy changes. However, regardless of tariffs or federal trade policy, KCE remains committed to the development of this project based on regional utility needs and expected growth in demand for electricity.

Battery energy storage systems are energy-agnostic, meaning they store electricity regardless of its generation source. These systems draw power from the electric grid during periods of low demand - typically midday or overnight - and discharge it during periods of high demand, such as in the morning or evening. This can help keep electricity prices lower. The dispatchability or nimbleness of the facility is unmatched by other thermal forms of generation.

The energy stored by the system is drawn directly from the electric grid. In Michigan, the grid's energy mix typically includes natural gas, nuclear, coal, solar, and wind, with the exact blend varying by time of day. This project will help balance that mix by making energy available when it's needed most to help keep the lights on for nearby residents and across the entire electric grid.

Battery energy storage is primarily intended to meet short-duration spikes in electricity demand, especially during the early morning and evening hours when most people are home operating appliances like air conditioners or heating systems. While wind and solar are intermittent by nature, the need for quick response, peak-power capacity exists regardless of generation type. A battery storage system can respond within seconds to provide electricity, which greatly improves overall grid reliability and resilience.

No. This Project involves only standalone battery energy storage with an approximate footprint of 12 acres. There will be no solar panels or wind turbines installed. Once construction is complete, the project will have minimal visual impacts on the surrounding area.

The battery system will charge and discharge based on grid conditions and in coordination with the utility offtake / customer who purchases the power generated by the project. Typically, the system will discharge energy during peak demand hours and recharge during off-peak periods.

The project is expected to support 30 to 50 construction jobs. Additionally, KCE will make a $200,000 community benefit payment to Blendon Township, and the Township may also qualify for up to $500,000 in additional state grant funding.