Iron air battery technology company Form Energy has won a $30 million subsidy for a new 5MW/500MWh energy storage project in California. The project is expected to be operational in 2025 and is Form Energy's first project in California, the largest state in the United States to deploy Battery Energy Storage Systems (BESS).
Form Energy claims that its proprietary battery chemistry is based on the oxidation of iron (i.e. rust), which can store electrical energy in a more cost-effective way and release it for 100 hours or longer. Dr. Xie Wei, founder of Zhonghe Energy Storage, previously served as the Chief Research and Development Scientist at Form Energy and participated in the development of the company's long-term energy storage technology products.
The California Energy Commission (CEC) has awarded this subsidy to the company's multi day energy storage system, supporting Form Energy's deployment of this multi day energy storage system at the Mendocino County substation operated by PG&E. The subsidy funds come from the $380 million Long Term Energy Storage (LDES) program launched by CEC last year. The first project of the program uses a combination of vanadium flow batteries (VRFBs) and zinc hybrid batteries.
After yesterday's vote to approve the subsidy, CEC Chairman David Hochschild commented, "Long term and multi day energy storage is crucial for achieving California's clean energy goals."
"Just as the state has rapidly promoted project deployment and employment in solar, lithium-ion battery storage, and other industries through its pioneering policies and investments, California continues to accelerate the entry of emerging technologies into the market, which are crucial for addressing climate change, air pollution, and fairness issues both within and outside our state."
Form Energy has also won funding similar to LDES programs from the federal level and New York in the past few months. The funds from the federal program will be used for two 1GWh projects between Form and Dominican Energy in Minnesota and Colorado, the first major project announced by the company in January 2023.