#21 Form Energy

Multi-day energy storage batteries

Read time: 5 minutes

Hi, I’m Javi Gascón.

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Today we’ll distill a company that’s pioneering low-cost, iron-air batteries for 100-hour energy storage and a greener grid: Form Energy ????

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What Problem Does Form Energy Tackle?

They deal with several interconnected problems related to grid stability and the integration of renewable energy. Here’s what I mean:

1. Grid Instability and Frequency Fluctuations: Power grids face challenges in maintaining a delicate balance between electricity generation and consumption, leading to deviations that can cause widespread outages. Without adequate buffering, minor imbalances can cascade into significant disruptions.

2. Intermittency of Renewable Energy: The integration of renewable energy sources like solar and wind poses a challenge due to their intermittent nature, causing fluctuations in power supply. This intermittency can lead to grid instability and the need for additional generation resources to compensate.

3. Seasonal and Multi-Day Energy Storage Needs: Renewable energy production varies seasonally and daily, requiring multi-day energy storage solutions to ensure a stable and reliable power supply. Current grid infrastructure often lacks the capacity to store energy for extended periods, leading to inefficiencies and potential outages.

4. Economic and Operational Challenges: Power interruptions due to grid inefficiencies cost U.S. electricity consumers approximately $80 billion annually. The grid's inability to handle increasing demand and shifts in generation sources increases these issues.

So yes, it’s a big deal. But…

Product / Service ??

Form Energy has created an iron-air battery system designed for long-duration energy storage.

It works with a process called “reversible rusting“. When discharging, the battery breathes in oxygen, converting iron to rust and generating electricity. During charging, electricity converts rust back to iron, releasing oxygen.

Why is it so awesome you ask?

High Energy Storage: While its efficiency is lower (50-60%), it excels at long-duration storage. They store energy for up to 100 hours, making them ideal for balancing the variability of renewable energy sources.

Cost-Effectiveness: Iron-air batteries are significantly cheaper than lithium-ion batteries, around $20 per kilowatt-hour, which is 90% less than lithium-ion cells.

Environmental Benefits: The batteries use abundant, low-cost materials such as iron, water, and air, reducing the environmental impact compared to batteries made with rare metals like lithium and cobalt.

Safety and Durability: The batteries use a water-based, non-flammable electrolyte, making them safer and more durable. Unlike lithium-ion batteries, these don’t explode.

Scalability: These batteries can be deployed in large installations (of different types and capacities) on the grid.

Market ??

The global Long Duration Energy Storage (LDES) market is estimated to grow from $3.64 billion in 2024 to $8.61 billion by 2030, at a CAGR of 15.4%. Some sources believe the growth will occur faster since the integration of renewable energy sources and the need for grid stability are increasing rapidly.

Other Key Players

Many companies are creating all sorts of different solutions for LDES. These are just some:

ESS, Inc. ????: Develops iron flow battery solutions for long-duration energy storage, offering up to 8 hours of continuous energy with a 20+ year operating life.

Highview Power ????: Provides liquid-air energy storage technology that can deliver electricity for up to 12 hours, utilizing air liquefaction and waste heat for efficiency.

Antora Energy ????: They make thermal battery systems that convert low-cost, intermittent renewable electricity into reliable industrial heat and power.

Founding Story ??

Form Energy was founded in 2017 by a group of energy storage veterans with a unified mission to develop low-cost, multi-day energy storage systems to transform the global electric system. The company emerged from the merger of two separate initiatives.

One group, led by Ted Wiley, who co-founded Aquion Energy, and Billy Woodford, a former student of renowned battery researcher Yet-Ming Chiang, was working on a project called Baseload Renewables. They aimed to create a bi-directional power plant that could store and release energy, enabling renewable energy to serve as baseload power.

The other initiative was led by Mateo Jaramillo, a former Tesla executive who had founded the company's energy storage program. Jaramillo was working on a multi-day energy storage solution using different chemicals. Instead of competing, Jaramillo joined forces with Wiley, Chiang, Woodford, and another colleague, Ferrara, to form Form Energy.

In just 8 years they have raised over $1.2 billion and they’ve built massive projects with large utility companies all across the US.

Top Impact Stats ??

1. Form Energy's iron-air batteries can be built at 1 tenth the cost of lithium-ion batteries.
2. Including multi-day energy storage in the UK and Ireland’s 2030 portfolios can result in energy generation cost savings of 25-40% annually.
3. Form Energy's technology has the potential to mitigate energy curtailment (deliberate limitation of power generation to maintain balance between electricity supply and demand in the grid). In 2024, California curtailed 3.2 million MWh of power generation, enough to power 500K+ homes for a year.

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