Rondo Energy, a prominent provider of environmentally friendly industrial heat and power solutions, has secured $60 million in new funding aimed at accelerating the global deployment of Rondo Heat Batteries (RHBs) and revolutionizing the worldwide energy storage sector.
The industrial sector is the largest consumer of energy within the global economy. The processes behind the production of numerous commodities, ranging from steel to baby food, heavily rely on high-temperature heat, which accounts for a quarter of the world’s energy consumption and carbon emissions. Over time, there has been a search for cost-effective technologies to transform this “hard to decarbonize” industry sector. The U.S. Secretary of Energy, Jennifer Granholm, outlined the Department of Energy’s goal to reduce 85% of industrial heat through its Industrial Heat Shot Initiative.
With the declining costs of wind and solar power, these sources are now becoming more economical than the traditional fuels used for heat generation. The Rondo Heat Battery converts intermittent power from renewable sources into a continuous supply of high-temperature clean heat required by industries. This breakthrough opens up the possibility of industrial decarbonization at a significantly lower cost compared to other technologies.
In 2023, Rondo successfully launched its first commercial unit, which effectively reduced the carbon intensity of biofuel produced by Calgren Renewable Fuels. This project marked the debut of the first operational electric thermal energy storage system in the U.S., boasting the highest efficiency and temperature capabilities in global energy storage.
Also in 2023, Rondo, in collaboration with Siam Cement Group (SCG), announced a current Heat Battery storage production capacity of 2.4 gigawatt-hours per year, with ambitions to scale up to 90 gigawatt-hours per year.
Remarkably, Rondo Heat Batteries store energy at half the cost of alternative technologies like green hydrogen and chemical batteries. Rondo’s innovative approach relies on long-established materials used by heavy industry for over a century: brick and iron wire. By capitalizing on materials that have been produced at a large scale for many years, Rondo has mitigated the safety, durability, and supply chain challenges faced by other storage technologies.
In light of shareholder pressure for cost-effective and reliable climate solutions, Rondo’s technology presents a proven and effective solution for rapid and extensive decarbonization in the most energy-intensive and challenging-to-decarbonize sectors worldwide.
The electrification of industrial heat is projected to become a trillion-dollar market in the near future. Recent studies indicate that the decarbonized world will demand twice as much heat battery storage as grid battery storage, with heat batteries significantly reducing energy costs for the production of key commodities in the years to come.
This funding round involves contributions from existing Rondo investors such as Breakthrough Energy Ventures, Energy Impact Partners, SCG, and TITAN, as well as major players in the industry including Microsoft’s Climate Innovation Fund, Rio Tinto, SABIC, Aramco Ventures, and climate-focused investors SDCL Energy Efficiency Income Trust (SEEIT) and John Doerr. The funds will be utilized by Rondo to expand its global operations and to initiate the development and construction of storage projects on a global scale.
Notably, Rio Tinto, Aramco Ventures, SABIC, SCG, TITAN, and SEEIT have joined Rondo’s Strategic Investor Advisory Board (SIAB).