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 €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.
Rondo 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. The solution is based on a traditional heating of specially designed bricks by electric wires. The charging is done from dedicated renewable generation source or from the grid during the off-peak hours or hours of excess renewable production. The discharge ensures stable and reliable 24/7 heat supply in the form of steam, heated gas or cogeneration. This technology allows for decarbonization of industrial heat supply and can contribute to increased flexibility of the power system, therefore ensuring security of electricity supply, and for increasing the grid resiliency to intermittent power generation from renewable energy sources.
“The green transition requires massive investment for innovative technologies to replace industrial processes based on fossil fuels,” said EIB Vice-President Thomas Östros. “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.”
“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,” said Eric Trusiewicz, CEO of Rondo Energy. “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.”
Commission Executive Vice-President for the European Green Deal, Maroš Šefčovič, said: “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 700 billion dollars 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.”
“Rondo’s technology offers industry a unique opportunity to decarbonize with inexpensive renewable electricity,” said Mario Fernandez, Head of Breakthrough Energy Catalyst. “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.”
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 EU’s research and innovation programme Horizon Europe and the Innovation Fund within the framework of InvestEU, according to the established governance procedures. Breakthrough Energy Catalyst mobilises equivalent private capital and philanthropic grants to fund the selected projects.
Background information
The EIB is the long-term lending institution of the European Union owned by its Member States. It is active in more than 160 countries and makes long-term finance available for sound investment in order to contribute towards EU policy goals.
The EIB, as implementing partner of the Commission under InvestEU, has been tasked to deploy for the benefit of this partnership up to €420 million, made available from both Horizon Europe, which has already committed €200 million, and the Innovation Fund, which has committed €220 million. The EU-Catalyst Partnership does not exclude potential additional contributions from EU Member States or other private partners that decide to further support the projects. Interested projects can apply for support through the Breakthrough Energy Catalyst website.
Horizon Europe is the EU’s key funding programme for research and innovation with a budget of €93.5 billion (2021-2027). The Innovation Fund is one of the world’s largest funding programmes for the deployment of net-zero and innovative technologies and sources its funds from the selling of EU Emissions Trading System allowances (estimated to amount to €40 billion from 2020-2030).
Breakthrough Energy is a global network of climate leaders committed to accelerating the world’s journey to a clean energy future. The organization funds breakthrough technologies, advocates for climate-smart policies, and mobilizes partners around the world to take effective action, accelerating progress at every stage.
Breakthrough Energy Catalyst is a novel platform that funds and invests in first-of-a-kind commercial projects for emerging climate technologies. By investing in these opportunities, Catalyst seeks to accelerate the adoption of these technologies worldwide and reduce their costs.
Rondo is purpose-built for industrial facilities: its Heat Batteries are constructed from proven, durable materials and are designed for seamless integration with existing industrial equipment and processes. Whether deployed as a drop-in replacement for retiring fossil-fueled heating equipment or as a resilient complement to existing systems, Rondo requires no disruptive changes to customers’ operations. Rondo currently operates the world’s highest temperature, highest efficiency commercial energy storage system, at Calgren Renewable Fuels in Pixley, California.
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