The U.S. Department of Energy announced this week a $303.5 million loan guarantee to a New Jersey energy company with manufacturing facilities in Turtle Creek, Pa. The funds will support the $500 million construction of two new automated manufacturing lines to scale up the company’s production of longer-lasting battery systems designed to reduce power plant reliance on fossil fuels.
Eos Energy Enterprises, whose Turtle Creek facilities are situated on the former Westinghouse Electric Corporation campus, first announced its planned expansion in August, 2023. The energy storage startup produces utility-scale, zinc-powered, long-duration energy storage systems, which could serve as a more sustainable alternative to lithium batteries.
Eos’ “Project American Made Zinc Energy” (AMAZE) is expected to manufacture 8GWh of storage capacity annually by 2026. That’s enough electricity to power more than 300,000 U.S. homes at once, according to the DOE.
“Today’s announcement will bolster the nation’s energy security while ensuring President Biden’s manufacturing boom continues to deliver for generations to come,” said U.S. Secretary of Energy Jennifer Granholm.
According to the DOE, the funds may also support two additional fully-automated production lines at a facility in Duquesne, Pa.
The announcement signals the Biden administration’s interest in Eos’ technology as a cleaner alternative to fossil fuel. The DOE said energy storage systems powered by zinc batteries could help stabilize energy during demand spikes as well as provide a backup power option during outages.
“Grid-scale storage allows utilities and industrial customers to store energy when there is a surplus and use it when energy is relatively more expensive or supply is unavailable,” The Department of Energy said in a release.
Compared to market-leading lithium batteries, zinc batteries are cheaper to make and at best can last twice as long. Zinc batteries also use a water-based electrolyte, making them less flammable than lithium products.
Eos’ zinc-bromide Z3 battery technology is designed for long-duration storage at grid scale. The Department of Energy said that could play a key role in meeting the energy grid’s ever-growing demand at a time when lithium supplies are growing scarce.
The DOE said zinc-powered storage systems are “better insulated from market volatility and supply chain risk that challenge other battery chemistries by forgoing scarce critical minerals such as lithium, which are largely imported.”
According to Eos, project AMAZE is expected to maintain and create as many as 1,000 temporary and permanent jobs and apprenticeships. The company’s Turtle Creek workforce currently has 250 full-time employees.
Eos chief financial officer Nathan Kroeker called the Department of Energy backing “a strong endorsement of Eos’ proprietary Z3 technology and our ability to manufacture in the U.S.”
Pennsylvania Sen. Bob Casey applauded the loan guarantee in a statement this week, crediting the Inflation Reduction Act. (The 2022 law earmarked $5.8 billion toward clean energy manufacturing projects.) Casey said Pennsylvania is poised to remain a top energy supplier for the U.S.
“We are making game-changing investments in energy technology manufacturing to ensure that Pennsylvania can continue to power our Nation,” Casey said. “This project is not only an investment in the technology of tomorrow, but in Pennsylvania workers.”
The Eos investment marks the latest chapter of an advanced manufacturing boom in Western Pennsylvania. The Allegheny Conference on Community Development said the support signals the federal government’s belief in the region’s ability to “shift the global energy landscape.”
“On the heels of recent project wins like Mainspring Energy’s creation of a linear generator manufacturing facility and expansion announcements by Mitsubishi Electric Power Products, Inc., and Powerex, it is evident that southwestern Pennsylvania is a hub for growth industries,” said Stefani Pashman, CEO of the Allegheny Conference.
The DOE initially announced the loan under a conditional commitment in August last year. The commitment required Eos to establish a community benefit plan and to meet certain technical, legal and financial conditions. The company has partnered with the Allegheny Conference, local schools and others to promote job training opportunities and support affordable housing development, Eos said.
“With each step, we’ve been honored to work closely with the Eos team, and through continued partnership, we envision a bright future for the company in the Mon Valley and beyond,” Pashman said.
