The U.S. Department of Energy (DOE) has unveiled a significant investment of $325 million to support nine pioneering proposals in the field of long-duration energy storage. This substantial funding, largely facilitated by the Bipartisan Infrastructure Law, is earmarked exclusively for projects capable of delivering stored electricity for durations exceeding 10 hours. Long-duration energy storage is considered a crucial element in the quest to transform intermittent renewable energy sources like wind and solar into a consistent, round-the-clock power supply. The DOE's objective is to witness a 90% reduction in the cost of long-duration storage throughout this decade, rendering it a cost-effective tool for a sustainable, low-carbon energy grid.
This funding initiative signifies a crucial step toward achieving that ambitious goal. While many of the technologies have been in development for extended periods, they have faced hesitancy from both utilities and private investors due to the need for scalable, real-world testing. The DOE's selection of these projects underscores the agency's confidence in their potential, earning them what Under Secretary for Infrastructure David Crane likened to a “Good DOE Housekeeping seal of approval” for novel storage solutions.
David Crane, who oversees the Office of Clean Energy Demonstrations, emphasized the rigorous evaluation process that led to the selection of these projects. He stated, “These projects were picked after an extensive — and I mean extensive — internal review process. If we're backing it, that's a good sign.”
Among the winning projects, two aim to repurpose used electric-car batteries, namely ReJoule and Smartville, for enhancing resilient power supply in low-income communities. Others explore electrochemical methods, offering potential advantages over conventional lithium-ion batteries. Urban Electric Power will assess its zinc manganese dioxide batteries in New York, while Invinity's vanadium flow batteries will be put to the test by five rural electric cooperatives. Zinc bromide batteries are slated to provide backup power to a children's hospital in disadvantaged Madera, California, and NextEra Energy Resources will evaluate zinc bromide batteries in Wisconsin and Oregon, supplied by Eos Energy Storage, which recently secured a $400 million loan guarantee from the DOE.
Energy Dome, a dynamic Italian cleantech startup, secured funding for its inaugural U.S. project in collaboration with three major Wisconsin utilities. The company employs a unique approach to energy storage, compressing and expanding carbon dioxide within large bubble structures. Energy Dome has already demonstrated its technology through a 2.5-megawatt project in Sardinia.
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In an environmentally significant development, the remote community of Healy, Alaska, is set to transition from coal power to renewable energy with the assistance of a “pumped thermal energy storage” system, developed by legacy company Westinghouse and Echogen.
Lastly, Form Energy clinched the sole award for storage capable of discharging power for multiple consecutive days. This well-funded startup will install its iron-air batteries at retiring coal plants owned by utility Xcel Energy in Colorado and Minnesota. The partnership with Xcel, announced earlier this year, now benefits from financial support, along with research contributions from Argonne National Lab to assess the technical and social implications of the project. Form Energy also recently secured a contract with Virginia utility Dominion Energy.
While the statute initially called for a 50-50 cost-sharing arrangement on these projects, the DOE managed to stretch taxpayer dollars further. Following the DOE's contribution of $325 million, the remaining investment of approximately $800 million will come from private capital to fund the construction of these projects.
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When asked about his preferences among the technologies, David Crane remained impartial, stating, “I'm an ecumenical guy. I love all nine projects, and we will be zealous in pursuit of all.”
The ultimate success of these initiatives, Crane asserted, will be their replicability. The government's funding is designed to elevate technologies that have not yet achieved widespread commercial adoption, convincing both private investors and utility regulatory bodies of their reliability and effectiveness. If this endeavor proves successful, it could pave the way for a wave of similar projects in the near future.
However, before these projects can commence, applicants must finalize their negotiations with the DOE and navigate the complex processes of permitting, design, and construction. This phase is estimated to take four to five years, but Crane expressed a strong desire to expedite the process whenever possible.
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“My personal mission at the DOE is to move into a fast-track posture,” Crane stated. “If a company says they can move faster, we're going to spend a lot of time making sure we don't slow them down.” The hope is that, given the rigorous vetting from national laboratories, a second wave of projects can begin development even before the initial wave is completed, accelerating progress toward a more sustainable and reliable energy future.
