Breakthrough Energy to Provide US$20 Million Grant to Xcel for Iron-Air Battery Projects

  • Form Energy is investing US$760 million into a plant to produce its battery technology, which oxidises metallic iron to discharge and converts it back into iron to charge.
  • This Catalyst grant will accelerate the adoption of this promising new technology.

Utility Xcel Energy has received a US$20 million grant commitment from VC firm Breakthrough Energy for projects using Form Energy’s iron-air battery, while a sodium ion battery firm has secured bridge financing. The grant from Breakthrough Energy Catalyst, part of Bill Gates-founded Breakthrough Energy, would go towards two 100-hour duration energy storage projects being deployed by Xcel Energy.

Two projects using Form Energy’s iron-air battery, totalling 10MW/1,000MWh each, will receive US$10 million, subject to satisfying certain funding conditions. The projects, announced in January, will be deployed at two retiring coal stations: Sherburne County Generating Station in Becker, Minnesota, and the Comanche Generating Station in Pueblo, Colorado. Xcel is headquartered in Minnesota.

In addition to the grant funding, Xcel intends to use the tax credit incentives from the Inflation Reduction Act to further lower the cost of the iron-air battery projects, which are expected to come online in 2025. Bob Frenzel, chairman, president and CEO of Xcel Energy, said: “Innovative long-duration energy storage technologies are crucial to achieving 100% carbon-free electricity. This Catalyst grant will accelerate the adoption of this promising new technology, which allows us to provide higher percentages of renewable energy while still providing affordable electric service to our customers.”

Source: Energy Storage News

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