Published on May 21st, 2013 | by Zachary Shahan


Eos Energy Storage Raises $15 Million, Gets Funding From NRG Energy

May 21st, 2013 by  

Eos Energy Storage has released its second big announcement of the month, a funding boost that includes funding from NRG Energy, a major US energy company.

I just featured a long post on Eos Energy Storage less than a month ago, followed soon after by a post on its first pilot project (with Con Edison). Click that first one above for all kinds of details on the company’s energy storage technology. The essentials, however, are simply that Eos Energy Storage has developed a grid storage solution that is much cheaper than what has been on the market up until now. Of course, it has just launched its first pilot project, so we have to wait until it actually gets to market, but according to the company, that should be in 2014.

The Eos Aurora battery is projected to cost $1,000/kW or $160/kWh. The cycle life is 10,000 full cycles (30 year life). And the storage system has a 75% round-trip efficiency. As such, the LCOE is very competitive. (Click to enlarge.)

The Eos Aurora battery is projected to cost $1,000/kW or $160/kWh. The cycle life is 10,000 full cycles (30 year life). And the storage system has a 75% round-trip efficiency. As such, the LCOE is very competitive. (Click to enlarge.)

EOS Aurora battery

In the press release sent out late yesterday, Eos announced that it had raised $15 million Series B financing “with participation from a syndicate of 21 strategic and financial investors.” One very notable investor this round is NRG Energy. As the release notes, NRG Energy has “the nation’s largest independent power generation portfolio of fossil fuel, nuclear, solar and wind facilities.” Despite having its hands in some not so clean sources, it has been heavily focused on diversifying into clean energy and potentially disruptive technology solutions. This is the first time NRG has invested in an energy storage company.

“Eos’s technology is of strategic interest to NRG as we seek to enhance the value of our generation assets and evaluate novel energy storage business opportunities,” said Denise Wilson, NRG Executive Vice President and President, New Businesses. “We have confidence in Eos’s technology, its management team and the compelling value proposition the company will provide to the marketplace.”

Another investor Eos highlighted is Fisher Brothers, “a privately owned New York City-based real estate firm which also owns Plaza Construction, a contractor with experience building urban power plants and renewable energy projects.” The company is “a co-sponsor of the City Investment Fund (with Morgan Stanley), a founding member of Perella Weinberg Partners and a founding partner of Convergent Energy + Power, an energy storage asset development company with a pipeline of projects in New York, California and elsewhere.”

In addition to the Con Edison pilot project mentioned above, Eos says that it “is in advanced discussions with several states regarding the location of its pilot manufacturing facilities.” And it reaffirmed its goal of deploying Eos Aurora batteries in 2014.

Eos has now started its Series C investment round. This round is aimed at raising funds to produce and deliver, in 2014, Aurora energy storage systems for the utilities with which it has lined up partnerships. There’s no word yet on who those utility partners are, but Eos mentions that they extend beyond the US, and announcements are supposed to be coming in late spring or summer.

Eos contends that it has a relatively short path to profitability, which is based on its deals with utilities and a capital-efficient manufacturing plan. We’ll see.

To keep an eye on all the latest Eos Energy Storage news, bookmark our Eos archives.

Check out our new 93-page EV report, based on over 2,000 surveys collected from EV drivers in 49 of 50 US states, 26 European countries, and 9 Canadian provinces.

Tags: , , , , , , , , ,

About the Author

is tryin' to help society help itself (and other species) with the power of the typed word. He spends most of his time here on CleanTechnica as its director and chief editor, but he's also the president of Important Media and the director/founder of EV Obsession, Solar Love, and Bikocity. Zach is recognized globally as a solar energy, electric car, and energy storage expert. Zach has long-term investments in TSLA, FSLR, SPWR, SEDG, & ABB — after years of covering solar and EVs, he simply has a lot of faith in these particular companies and feels like they are good cleantech companies to invest in.

  • MightyDrunken

    Sounds interesting but with the current battery technologies it feels like it will always be too expensive. I like Isentropic’s idea of using a heat engine to store electricity, it seems they have funding to set up a demo plant.
    I guess we will see if the idea works in practise.

    • Bob_Wallace

      I think we’ll see cheaper storage solutions, but this one seems to be in hand.

      The encouraging thing for me is that if this is as good as it ever gets, it’s good enough. It’s easily sited storage which can give us an almost fossil-fuel free grid for an affordable price. If this battery performs as the developers claim it will then we will have the last piece we need to clean up our grids.

      Over time I expect the price of wind, solar, storage and other renewables to decrease in price. If we’ve reached the threshold of an affordable clean grid then everything past this point is gravy.

      • MightyDrunken

        The thing about this technology that jumped out at me was how easily it is to setup and move about relative to the alternatives. Maybe it would be very useful to companies that need to manage their energy supply.

        It is funny how the advances in this sort of technology and renewables are quite exciting to me. Yet on other sites the fossil fuel “supporters” only see doom and gloom with regards to alternative energy supply. Shrug.

        • Bob_Wallace

          I don’t think Zack will mind if I speak for him in saying that the major goal of this site is to help people discover how we can best move away from fossil fuels and toward a future that gives us the least reason to be ‘doomy’ and gloomy.

          Only worrying and doing nothing to prevent the worst is dumb and self-defeating. We’re all in trouble and some of us are looking for the best exit route.

  • Nathan

    I don’t agree with your figures, companies estimates pricing based upon cost effectiveness of the project, but the prices you are quoting per kilowatt sounds very low to me, I don’t think the company can deploy such technology and make a profit on such a low figure on commercially scale.

  • Great new, EOS really looks promising.

    Utilities may replace some of their peaking plants with these storage devices even if they have no intention of deploying renewables.

    • Bob_Wallace

      The cost of natural gas turbines is very low, $0.60/kW. The cost of combined cycle natural gas turbines is also very low, $0.88/kWh. (The turbine part of a CCNG plant can be used for short term peaking.)

      At $160/kWh plus the cost of electricity to charge them it would seem that battery storage has a long way to go before it can start eating significantly into the use of NG. EOS states that the LCOE of electricity coming from their batteries would be $0.12 to $0.17/kWh, depending on the price of the incoming electricity.

      Natural gas produces for $0.05 to $0.07/kWh.

      A lot of the price of peaking power probably comes from the cost of leaving capacity sitting idle most hours of the year. Those capex and financing costs have to be recovered in only a few hours of annual operation. If a plant is running only a few hours a year then fuel prices aren’t significant.

      It’s going to be cheaper to leave <$1/kWh gas generation sitting idle than to have money tied up in ~$160/kWh batteries.

      Displacing gas off the grid is going to be tough.

      • Bob, I am slightly confused about your numbers.

        $0.6/KW cannot be installed capacity price (way too low) and cannot be LCOE either (too high).

        • Bob_Wallace

          Bad number on my part. Overnight capital cost of NG turbines is $600/kW and $880 for CCGT. I failed to convert correctly. Sorry.

          The vertical axis of the graph where I got the numbers is $1,000/kWh and I failed to multiple by one thousand.

          That makes the Eos batteries cheaper in terms of overnight cost. NG turbines could still be cheaper in some circumstances because fuel storage is cheap.

          For extended periods of operation the cost of additional batteries is likely to be higher than fuel storage.

          “Natural gas produces for $0.05 to $0.07/kWh.”

          Those are the median LCOEs for NG turbines and CCGTs.

Back to Top ↑