U.S. Energy Department Closes $303.5 Million Loan Guarantee to Eos Energy Enterprises to Develop Long-Duration Batteries

The U.S. Energy Department on Dec. 3 announced the closing of a $303.5 million loan guarantee to EoS Energy Enterprises to fund the construction of two innovative and efficient production lines that will be capable of producing enough stationary batteries to fulfil the yearly electricity requirements of around 130,000 households.

The financing will help Eos produce innovative utility-scale and industrial-scale zinc bromine battery energy storage systems, named Eos Z3™ in Turtle Creek, Pennsylvania. Moreover, two additional lines in Duquesne, Pennsylvania may be included as part of the loan guarantee, depending on loan program office approvals and completion of an environmental assessment. Eos’s technology is designed for long-duration, grid-scale stationary battery storage that can assist in fulfilling the changing demand amid the growth in renewable energy penetration.

The four lines in total are projected to produce eight gigawatt hours (GWh )of storage capacity yearly by 2027, boosting the U.S.’s energy security. The funding announced reinforces the department’s pledge to encourage innovative energy solutions, while at the same time creating well paid employment opportunities.

Battery storage systems serve multiple purposes, playing a critical role in modernizing the grid. They allow energy from renewable sources such as solar and wind to be stored and released during periods of high demand, supporting the transition to cleaner energy. By storing electricity during periods of high supply and releasing it during low supply, battery storage helps utilities shift power consumption from times of high demand to low demand, reducing strain on the grid. Utilities also use battery storage to enhance grid reliability through ancillary services, which support the efficient transmission of electricity. The stored electricity not only stabilizes the grid but also reduces price volatility, benefitting consumers. As part of the arbitrage process, utilities charge batteries by purchasing power during low-cost periods and sell that electricity when prices rise, maximizing economic efficiency.

Eos Z3™ batteries provide alternate battery chemistry to lead-acid, sodium-sulfur lithium-ion, and vanadium redox chemistries for stationary battery storage applications. In the future, Eos aims to procure nearly all of the material for the battery domestically. As it stands, the product is better protected from supply chain risk and market volatility compared to the other battery chemistries.