Eos Energy Enterprises, a long-duration zinc-powered energy storage system company based in Pennsylvania, has announced a new $500 million program called AMAZE (American Made Zinc Energy) in a bid to build 8 GWh of annual energy storage production capacity by 2026.
The project has been awarded an up to $398.6 million conditional commitment for a loan guarantee from the U.S. Department of Energy’s (DOE) Loan Programs Office, according to Eos. If that comes through, the loan will fund 80% of the company’s planned expansion, including capital expenditure and other eligible costs, Nathan Kroeker, chief financial officer of Eos, told pv magazine USA. The company’s current semi-automated line is 540 MWh of annual production capacity, and it is currently in the process of ramping up to commercial production at this level, Kroeker said.
“The issuance of conditional commitment by the DOE was preceded by legal, technical and commercial due diligence by the LPO to evaluate the loan and the project’s potential to meet market demand and commercial and environmental benchmarks,” the company stated. However, the project will need to meet certain milestones and technical, legal and financial conditions before the agency officially funds the loan.
Eos’ zinc halide storage systems are specifically designed for long-duration energy storage, including utility-scale as well as microgrid applications, Kroeker said.
“The market needs numerous non-lithium alternatives in order to achieve the green targets that companies, utilities, and state and federal governments have set. Given Eos’ product is non-flammable, it is also suitable for urban and potentially indoor applications,” Kroeker added.
In 2018, the company relocated its production and supply chain from China back to the U.S., and the battery includes predominantly American components. Because of this, the company can take advantage of direct pay tax credits included under the Inflation Reduction Act (IRA), which was signed by President Biden into law last August.
The implementation of that legislation requires the industry to move with speed and urgency if it is to meet the demand for long-duration energy storage, said Eos CEO, Joe Mastrangelo.
“Project AMAZE should allow Eos to fully commercialize a safe American-made energy storage alternative aimed at creating a resilient, diversified lower carbon energy future,” Mastrangelo said.
Eos was founded in 2008 and says its technology presents a cost-effective and scalable alternative to other energy storage technologies on the market today. In 2020, the company signed a deal to supply 1 GWh of energy storage systems in projects in the Electric Reliability Council of Texas (ERCOT) market, and another to supply Carson Hybrid Energy Storage with 500 MWh of battery energy storage systems for the California grid.
Last November, Eos along with Invinity Energy Systems were chosen to provide their systems for a 60 MWh solar-plus-storage microgrid developed by Native American-owned Indian Energy, to provide back-up power to the Viejas Casino and Resort. Eos’ role in the project included providing a 35 MWh zinc battery.
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