Eos Energy Enterprises (Eos) on Thursday said it has secured a conditional commitment for a loan up to $398.6 million from the U.S. Department of Energy's (US DOE) Loan Program Office (LPO) to finance its Project AMAZE – American Made Zinc Energy.
Project AMAZE supports Eos' strategy to address increased long-duration energy storage (LDES) demand driven by the Inflation Reduction Act (IRA) implementation, using its Eos Z3 energy storage system, the company stated. The loan guarantee has been extended for the construction of up to four advanced production lines to produce the Eos Z3 a next-gen utility- and industrial-scale zinc-bromine battery energy storage systems (BESS) in Turle Creek, Pennsylvania.
"We are excited to formally announce Project AMAZE. The IRA implementation requires us to move with speed and urgency if the energy industry is going to meet the demand for long-duration energy storage," said Joe Mastrangelo, CEO of Eos Energy Enterprises, Inc.
"Project AMAZE should allow Eos to fully commercialize a safe American-made energy storage alternative aimed at creating a resilient, diversified lower carbon energy future."
Project AMAZE is a $500 million expansion program designed to scale the annual production to 8GWh storage capacity by 2026. The expansion will help Eos meet the growing demand for LDES. Once finalized, the US DOE LPO will fund up to 80% of the expansion in Pennsylvania.
"Eos Z3™ battery contains predominately American components and is specifically designed for mass production and meeting low-cost, long-duration, grid-scale stationary energy storage needs," Eos stated.
The domestic production will enable Eos to access the 45X advanced manufacturing direct pay tax credits available under the IRA. The Eos Z3™battery is based on over a decade of Eos' work of developing the Znyth battery technology, that uses zinc a raw materials which is abundantly available and aims to overcome several limitations in other stationary energy storage solutions.
The loan is a conditional commitment on part of DOE. Prior to its finalization, the project has meet several conditions -- technical, legal and financial set out by the DOE on satisfaction of which the two entities will enter into definitive agreement sanctioning the loan.
As of the end of June 2023, requested financing for energy storage projects from US DOE - LPO via active loan applications totaled nearly $8 billion.
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