Minnesota PUC approves multi-day energy storage project
Grid Scale

Minnesota PUC approves multi-day energy storage project

The Minnesota Public Utilities Commission has approved a multi-day long-duration energy storage project proposed by Xcel Energy and Form Energy.

The demonstration-scale, 10 MW/1,000 MWh iron-air battery system, developed by Form Energy, will be installed on 5 acres of land near the Sherburne County Generating Station in Becker, Minnesota. The project will be located near the 710 MW Sherco Solar site, which is currently in development.

Construction of the battery system will start in the second quarter of 2024, with the battery expected to come online as early as 2025. The project is expected to support 15 to 20 construction jobs and generate $9 million in local tax revenue.

GO DEEPER: Check out the Factor This! energy storage podcast playlist, including episodes on battery storage, long-duration energy storage, gravity storage, and more. Subscribe wherever you get your podcasts.

The project is one of two battery storage projects to be installed at the sites of retiring Xcel Energy coal plants, with the other location at the Comanche Generating Station in Pueblo, Colorado. The batteries will allow Xcel Energy to store renewable energy such as solar and wind when it is being produced and then later distribute the energy during periods of lower production.

In April, the iron-air battery projects received a $20 million contingent grant commitment for its efforts in using emerging climate technologies to reduce emissions and accelerate the clean energy transition. The grant provides $10 million each for the Minnesota and Colorado battery systems, subject to the satisfaction of certain funding conditions.

Xcel Energy has also applied for a grant from the U.S. Department of Energy to reduce the cost of the projects. The company expects a decision on the application later this summer.

In addition to grant funding, Xcel Energy plans to use provisions in the federal Inflation Reduction Act, such as renewable energy tax credits, to further lower the cost of the iron-air batteries.