photo by: Craig Howell
Form Energy will receive approximately $389 million for a project to develop at a multi-day electrical storage system for New England at its factory under construction in Weirton.
CHARLESTON — Weirton-made Form Energy batteries will be put to the test in a new energy storage project announced for New England.
West Virginia state and federal officials praised an announcement made Tuesday by the U.S. Department of Energy for more than $2.2 billion in funding for electrical grid resiliency projects across the nation through the $1.2 trillion Infrastructure Investment and Jobs Act passed in 2021.
“The Biden-Harris Administration is investing in the most crucial component of the nation’s infrastructure, expanding and hardening the grid to allow more resilient, clean power to reach more households, and support the ongoing manufacturing boom–all while creating thousands of local jobs,” said Department of Energy Secretary Jennifer Granholm in a statement.
According to a press release Tuesday by the Department of Energy and Form Energy, approximately $389 million from the Grid Innovation Program will go for the Power Up New England project which involves the building of a multi-day battery energy storage system in northern Maine. The multi-state project includes Connecticut, Maine, Rhode Island, New Hampshire, Vermont and Massachusetts.
The goal of the project is to store energy generated through onshore transmission and new offshore wind power generation. According to the DOE, the project would reduce wholesale energy supply costs by approximately $1.6 billion and allow for up to 4,800 megawatts of clean energy generated from offshore wind.
According to Form, the 85 megawatt/8,500 megawatt-hour, multi-day battery energy storage system will be capable of providing up to 100 hours of electricity generated by the offshore wind turbines, creating a more reliable source of electricity for the Northeast, especially during the winter months.
Form also claims that the energy storage system will help lower electric bills for residential consumers.
Mateo Jaramillo, co-founder and CEO of Form Energy, said in a statement Thursday that the batteries for the Maine multi-day battery energy storage system will be manufactured at the new Form Factory 1 in Weirton.
“This is the largest energy storage project by energy capacity announced yet in the world,” Jaramillo said. “Just as we are revitalizing the historic Weirton Steel Mill site, we are committed to bringing new industry and revitalization to the Lincoln community. Through Form Factory 1 in Weirton and our project deployments across the country, we aim to invest in local communities and create jobs, fostering sustainable development and long-term prosperity.”
Ground was broken at the Form facility on the site of the former Weirton Steel in May 2023. Jaramillo said Form Factory 1 is mostly finished, with worker training ongoing, as well as tests of the production lines for its innovative iron-air batteries. Full manufacturing is scheduled to begin later this year.
The Form project and the Power Up New England project are beneficiaries of the Infrastructure Investment and Jobs Act. Initial negotiations on the bill began in March 2021 between U.S. Sen. Shelley Moore Capito, R-W.Va., and President Joe Biden. Further negotiations continued later that year with a bipartisan group of senators, including Sen. Joe Manchin, I-W.Va.
“This investment is great news for Weirton and signals that West Virginia will continue our proud tradition of helping power America,” said Capito, the ranking Republican member of the Senate Environment and Public Works Committee. “I’m thrilled about the progress of Form Energy’s plant and looking forward to seeing how the resources we provided in the Infrastructure Investment and Jobs Act will once again directly benefit our local economies and communities, specifically in the Northern Panhandle, for years to come.”
“For generations, West Virginia has done the heavy lifting, doing everything asked of it to create a legacy as America’s energy and manufacturing powerhouse,” said Manchin, I-W.Va., the chairman of the Senate Energy and Natural Resources Committee. “With this federal investment, Form Energy and the Mountain State are continuing this tradition, providing energy security and reliability to the entire nation.”
“I am proud to see the Bipartisan Infrastructure Law continue to strengthen America’s supply chains and create new jobs right here in West Virginia,” Manchin continued. “The Mountain State is now at the forefront of innovation as we lead the charge of bringing battery manufacturing back to the United States.”
Form also benefits from a $215 million forgivable loan approved by the West Virginia Economic Development Authority Board of Directors on June 23, 2023, through the EDA’s High Impact Development Project Fund. Senate Bill 729, passed in 2022, allows the EDA to use monies in the Economic Development Project Fund for projects with investments of more than $50 million and expected creation of at least 200 permanent jobs.
“West Virginians have always been willing to sacrifice for the energy, steel and work ethic needed by our great nation. With this federal investment, our state’s interest in continuing our energy heritage with Form Energy is showing dividends,” said Mitch Carmichael, cabinet secretary of the state Department of Economic Development. “Form Energy’s early achievements and their decision to choose West Virginia will exhibit what we already know, that the Mountain State is the best place to live, work and raise a family.”
Form’s loan term is three years with 0% interest unless job creation requirements are not achieved. Headcount for Form Factory 1 began at 380 and is expected to grow to 750 full-time jobs by 2028. The facility represents a $760 million investment in the state. The state is using an asset-based lending approach for the project as the Weirton Steel buildings are improved and renovated. The state will retain ownership of the land and buildings as a backstop to guarantee the state’s investment.
