Google shells out $1B for Form Energy's 100-hr battery - AI News Today Recency

# Google Shells Out $1B for Form Energy's 100-Hour Battery

Google has made a transformative investment in clean energy infrastructure by announcing a landmark 1.9-gigawatt renewable power deal with Xcel Energy that features a groundbreaking 300-megawatt iron-air battery system from Form Energy[1]. This unprecedented commitment represents a major milestone in powering AI-hungry data centers entirely on wind and solar energy, addressing one of the technology industry's most pressing sustainability challenges[5].

The deal, which includes contributions from Google to support clean energy generation and grid infrastructure, demonstrates the tech giant's confidence in emerging battery technologies as a solution for 24/7 renewable power[1][2]. By pairing 1,400 megawatts of wind generation and 200 megawatts of solar power with Form Energy's 30 gigawatt-hour battery system, Google is creating what experts are calling one of the most ambitious attempts yet to eliminate fossil fuel reliance from hyperscale data center operations[3][5].

The World's Largest Battery System Explained

Form Energy's iron-air battery system will be the largest battery in the world by energy capacity, capable of delivering 300 megawatts of continuous power while storing 30 gigawatt-hours of energy[1]. The system's most remarkable feature is its ability to discharge for 100 hours straight, making it a true "multi-day" energy storage solution[3][4].

Unlike traditional grid-scale lithium-ion batteries that provide short-duration storage measured in hours, Form's iron-air technology stores energy through a chemical transformation process that converts iron to rust and back again[5]. While iron-air batteries are heavier and less efficient than lithium-ion alternatives—delivering only 50% to 70% of the energy used to charge them compared to 90% for lithium-ion—they offer a massive cost advantage[3]. Form projects a fully installed system cost below $20 per kilowatt-hour by the end of the decade, at least three times cheaper than lithium-ion batteries[1][3].

The battery system will be deployed at a new Google data center in Pine Island, Minnesota, and is expected to begin operations in 2028[1][2]. The long-duration storage capability allows renewable energy sources to "firm" the power supply, enabling continuous operation during nighttime hours and periods of low wind or solar production[3].

Form Energy's Manufacturing Scale-Up and Timeline

Form Energy's West Virginia factory, known as Factory 1 (FF1), has already commenced commercial production and is on track to reach an annual production capacity of 500 megawatts by the end of 2028[1][4]. The facility received up to $150 million in support from the U.S. Department of Energy's Battery Materials Processing and Battery Manufacturing and Recycling programs in September 2024[4].

This Google deployment marks Form Energy's largest commercial project to date. The company's first operational system, developed with Great River Energy, is designed to store just 150 megawatt-hours of energy—roughly 200 times smaller than the Google project[1]. The startup has raised approximately $1.2 to $1.4 billion to date, with investors including Bill Gates's Breakthrough Energy Ventures[1][3][4].

Form expects to begin delivering batteries to the Google data center in 2028, with manufacturing occurring entirely in the United States[4]. CEO Mateo Jaramillo emphasized the significance of the deal, stating that "a new iron age for the grid is upon us," highlighting the company's commitment to scaling up production to meet surging demand from data center operators[2].

Google's Innovative Clean Energy Funding Model

Google is covering all costs associated with the clean energy generation, battery storage, and related grid infrastructure through a novel contract structure called a Clean Energy Accelerator Charge (CEAC)[1]. This funding mechanism ensures that regional ratepayers are not burdened with the costs of supporting the hyperscaler's clean energy transition[1].

The CEAC model was originally developed by Google in Nevada and is now expanding to other regions[2]. The Minnesota agreement demonstrates how this innovative tariff structure can fund an entire portfolio of emerging technologies rather than supporting a single technology type[2]. Additionally, Google has committed $50 million to support Xcel Energy's Capacity*Connect program, a first-of-a-kind distributed capacity procurement initiative that places utility-owned and operated batteries at strategic grid locations to improve reliability and avoid costly infrastructure upgrades[2][4].

This approach represents a significant evolution in how large technology companies are approaching their clean energy commitments, moving beyond simple renewable energy procurement to investing in grid infrastructure and emerging storage technologies[2].

Frequently Asked Questions

What makes Form Energy's iron-air batteries different from lithium-ion batteries?

Form Energy's iron-air batteries use abundant iron as their primary material, storing energy through a chemical transformation process that converts iron to rust and back again[5]. While they are less efficient than lithium-ion batteries—delivering 50% to 70% of stored energy compared to 90% for lithium-ion—they are significantly cheaper, with projected costs of just $20 per kilowatt-hour by the end of the decade, at least three times less expensive than lithium-ion alternatives[3].

When will the Google data center battery system become operational?

Form Energy expects to begin delivering batteries to the Google data center in Minnesota in 2028[1]. The system will be manufactured at the company's West Virginia factory, which is expected to reach an annual production capacity of 500 megawatts by the end of 2028[1].

How does a 100-hour battery system benefit renewable energy reliability?

The 100-hour duration allows the battery to store energy during periods of high wind and solar production and low demand, then release that energy during peak demand periods or when renewables aren't generating power[4]. This extended storage capability enables the data center to operate on clean energy continuously, even during nighttime hours and extended periods of low renewable generation[3].

What is Google's Clean Energy Accelerator Charge, and how does it work?

The CEAC is an innovative contract structure developed by Google that ensures regional ratepayers are not responsible for funding the company's clean energy infrastructure investments[1]. Instead, Google covers all costs of clean energy generation, battery storage, and grid infrastructure through this dedicated tariff mechanism, which was originally piloted in Nevada and is now expanding to other regions like Minnesota[2].

How much has Form Energy raised in funding, and who are its major investors?

Form Energy has raised approximately $1.2 to $1.4 billion to date[1][3]. Major investors include Bill Gates's Breakthrough Energy Ventures, which participated in the company's 2024 Series F funding round of $405 million[4]. The company also received up to $150 million in support from the U.S. Department of Energy for its West Virginia manufacturing facility[4].

Why is Google investing so heavily in long-duration battery storage?

Google is addressing a fundamental challenge in powering AI data centers on renewable energy: intermittency[5]. Traditional renewable energy sources like wind and solar are variable, and short-duration batteries cannot bridge extended periods without generation. Long-duration storage from Form Energy enables Google to run its power-hungry AI infrastructure around the clock on clean energy without fossil fuel backup, supporting the company's sustainability goals while maintaining the reliability required for mission-critical data center operations[5].