Xcel Energy receives $20 million grant commitment from Breakthrough Energy Catalyst for iron-air multi-day battery storage

MINNEAPOLIS (May 1, 2023) – Xcel Energy announced today that Breakthrough Energy Catalyst has agreed to commit $20 million in grant funding to support two multi-day energy storage projects designed to maximize the use of renewable energy while maintaining the reliability of the grid.

The grant would provide $10 million each for two 10 MW/1,000 MWh iron-air battery systems, subject to the satisfaction of certain funding conditions. Xcel Energy and Massachusetts-based Form Energy announced in January an agreement to construct the batteries at the sites of retiring coal plants: the Sherburne County Generating Station in Becker, Minnesota, and the Comanche Generating Station in Pueblo, Colorado. The batteries will allow Xcel Energy to store renewable energy such as solar and wind when it is being produced and then later distribute the energy during periods of lower production.

“Innovative long-duration energy storage technologies are crucial to achieving 100% carbon-free electricity,” said Bob Frenzel, chairman, president and CEO of Xcel Energy. “This Catalyst grant will accelerate 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.”

Breakthrough Energy Catalyst funds and invests in projects that use emerging climate technologies to reduce emissions and accelerate the clean energy transition. The grant represents Catalyst’s first partnership with a utility, demonstrating the strong alignment between the mission of Catalyst and Xcel Energy’s innovative approach to demonstrating new clean technologies at utility scale to enhance commercialization and adoption. 

“Long-duration storage will be a critical part of creating a clean, affordable and reliable grid, so we’re proud to play a role making these groundbreaking, first-of-a-kind utility-scale projects possible,” said Mario Fernandez, head of Breakthrough Energy Catalyst. “By investing in clean energy storage solutions, Xcel Energy is laying the groundwork for a net-zero future that’s affordable and keeps the lights on regardless of the weather, and these projects will help accelerate our journey there.”

While most existing battery technologies provide less than eight hours of energy storage, Form Energy’s iron-air batteries could deliver electricity for 100 hours at costs competitive with conventional power plants. The batteries will allow Xcel Energy to integrate more low-cost, renewable energy into its system and maintain the reliability of the grid as it retires all of its coal plants by 2030. The multi-day energy storage systems will strengthen the grid against normal day-to-day, week-to-week, and season-to-season weather variability, as well as to extreme weather events such as severe winter storms and polar vortex events.

In addition to the grant funding, Xcel Energy plans to use provisions in the federal Inflation Reduction Act, such as renewable energy tax credits, to further lower the cost of the iron-air batteries. The projects are expected to come online as early as 2025 and are subject to regulatory approvals in their respective states.

Learn more about Xcel Energy’s clean energy plans.

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About Xcel Energy

Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.

About Breakthrough Energy & Catalyst

Breakthrough Energy was founded in 2015 to accelerate the clean energy transition and help the world reach net-zero emissions by 2050. Through investment vehicles, philanthropic programs, policy advocacy and other activities, Breakthrough Energy is committed to scaling the technologies the world needs to meet its climate goals. Breakthrough Energy Catalyst is a first-of-its-kind model to finance the new solutions that will underpin a zero-carbon economy, focused on five technology areas: long-duration energy storage, sustainable aviation fuel, clean hydrogen, direct air capture, and manufacturing to decarbonize cement, steel, and plastics. Learn more about Breakthrough Energy and Catalyst at breakthroughenergy.org.