More climate-friendly production of foods, clean fuels, and chemicals in Europe is receiving a boost from the EU-Catalyst partnership, a joint initiative by the European Investment Bank (EIB), the European Commission, and Breakthrough Energy Catalyst.
Energy equipment manufacturer Rondo Energy is receiving EUR 75 million through grants and venture debt, subject to the satisfaction of funding conditions, so it can deploy in Europe a technology for turning intermittent renewable electricity into the continuous, high-temperature heat and power required by food, clean-fuel and chemical producers.
The green transition requires massive investment in innovative technologies to replace industrial processes based on fossil fuels. With today’s announcement, we are writing the next chapter of the EU-Catalyst partnership. We are delighted to support Rondo’s first-of-a-kind energy storage units. As the climate bank, we aim to finance many more net-zero technologies that will provide clean and affordable energy to power our industry and homes, while strengthening Europe’s competitiveness, said Thomas Östros, VP of EIB.
Rondo Energy operates the world’s highest temperature, highest efficiency commercial energy storage system, at Calgren Renewable Fuels in Pixley, California (CA).
First-of-a-kind utility-scale project in Europe
Rondo Energy will use the funding to expand its European presence and build projects delivering low-cost, continuous, high-pressure, zero-carbon steam and power as a service.
This involves the construction of first-of-a-kind utility-scale long-duration energy storage units with power-to-heat technology.
It is vital that Europe’s future green economy is built here. The EU-Catalyst Partnership is therefore an excellent blueprint for public-private support for large-scale green tech projects based in Europe. Thanks to the support provided by the Innovation Fund and Horizon Europe, this can help us step up funding levels, as the average investment needed for the EU to reach its 2030 climate target – to reduce greenhouse gas emissions – is equivalent to some US$700 billion per year. We also need to frontload this financing and ease access to it to ensure a level playing field for smaller companies. These are make-it-or break-it conditions for the green transition, commented Maroš Šefčovič, Commission EVP for the European Green Deal.
Decarbonize industrial heat supply
The solution is based on the traditional heating of specially designed bricks by electric wires.
The charging is done from a dedicated renewable generation source or the grid during the off-peak hours or hours of excess renewable production.
The discharge ensures a stable and reliable 24/7 heat supply through steam, heated gas, or cogeneration.
This technology allows for the decarbonization of industrial heat supply and can contribute to increased flexibility of the power system, therefore ensuring the security of electricity supply, and increasing the grid resiliency to intermittent power generation from renewable energy sources.
This project funding is a strong addition to our long-term relationship with Breakthrough and puts Rondo firmly on the path to help eliminate the green premium for industrial heat electrification and to become a fully bankable technology which can be deployed at scale. The grant from Breakthrough Energy Catalyst and the loan from the European Investment Bank together underpin Rondo’s development throughout Europe, where we see very strong tailwinds to the adoption of our technology, said Eric Trusiewicz, CEO of Rondo Energy.
Blueprint for public-private support
The EU-Catalyst Partnership creates a blueprint for public-private support for clean tech innovative technologies.
It aims to accelerate the deployment of innovative low-carbon technologies while also reducing their green premiums, that is, bringing their costs to a level competitive with fossil fuels.
EU funding for the partnership comes from the EU’s research and innovation program Horizon Europe and the Innovation Fund within the framework of InvestEU, according to the established governance procedures.
Breakthrough Energy Catalyst mobilizes equivalent private capital and philanthropic grants to fund the selected projects.
Rondo’s technology offers industry a unique opportunity to decarbonize with inexpensive renewable electricity. Rondo’s deployment is crucial at a time when European manufacturers are urgently looking for ways to eliminate their dependence on natural gas. We’re proud to support these important projects across Europe and to work with such great partners in Rondo, the European Investment Bank, and the European Commission who bring the commitment and vision to commercialize this critical technology, said Mario Fernandez, Head of Breakthrough Energy Catalyst.
