Eos Energy Storage has entered an agreement to supply more than 1GWh of zinc-based batteries to Hecate Energy. The deal, which was officially signed by both parties on November 4, is estimated to value around US$250 million. Headquartered in New Jersey, Eos has developed a DC battery system that is scalable for various applications and requires no rare-earth materials. Hecate Energy is based in Chicago and specializes in developing and operating renewable energy projects.
Batteries designed and manufactured by Eos have the proprietary Zynth technology. Specifically, these devices have a zinc hybrid cathode and an aqueous electrolyte. According to Eos, the chemistry composition of its batteries and the Zynth technology enable cost-efficient energy storage over the medium and long term. Eos also emphasizes that the component materials of its batteries are plentiful in supply, ethically sourced, and recyclable. The company claims that its batteries can last at least 15 years if they are required to discharge daily. However, their operational lifespan can be further extended to a maximum of 30 years with minimal capacity degradation.
Under the “broad-ranging” agreement, Eos will be providing batteries for Hecate’s upcoming projects over the next two years. These projects are standalone energy storage facilities as well as solar-plus-storage plants located in Colorado, New Mexico, and Texas.
Hecate develops large-scale solar and wind projects across three countries. Google is among its major clients. In 2018, Hecate together with Infrared Capital Partners formed Hecate Grid, a venture that focuses on developing energy storage projects. The strategy that Hecate adopts for energy storage is not much different from its strategy for renewable generation. For both businesses, Hecate will be designing, constructing, owning, and operating assets that draw revenues from the utility market.
How the batteries from Eos will perform in these projects is something that will warrant close observation going forward. Eos is one of several technology developers that are working toward the commercialization of zinc-based batteries. It remains to be seen whether the technology that they champion can become competitive with or complementary to not only lithium-ion batteries but also other emerging energy storage solutions.
Earlier in September, Eos announced that it has secured 1.5GWh worth of orders mostly from clients that are working on projects in Texas and California. Additionally, the company has partnered up with an EPC firm in Africa to build microgrids that are few megawatts in scale. Eos aims to become a publicly listed company in the future. To this end, it is pursuing a business combination transaction with blank check company B. Riley Principle Merger.
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