Australian clean energy company MGA Thermal, has secured $8.25 million in funding as it prepares to scale its long-duration energy storage (LDES) solution.

The fundraising effort attracted strong support from existing investors, including Main Sequence, Varley Holdings, Melt Ventures and New Zealand’s Climate Venture Capital Fund, MGA Thermal said in a statement on Thursday.

MGA Thermal also welcomes Pollination Group and Understorey Ventures as new investors whose involvement validates MGA Thermal’s role in unlocking zero-carbon renewable energy storage for grid and industrial applications.

According to the statement, the investment provides a foundation for the next phase of the company’s growth, facilitating the commissioning of its on-site production line and accelerating operations well into 2024.

As the company looks ahead, it remains dedicated to strengthening its team with exceptional talent.

The new funding injection allows MGA Thermal to strategically expand its commercial division and invest in engineering and implementation to propel MGA Thermal’s position as a market leader in developing TES materials.

“It’s a combination of our purpose-built MGA thermal blocks and thermal energy storage (TES) systems that unlocks the transition to clean energy by making it reliable, cost-effective and scalable,

“With the imminent completion of our production line, we’re on track to produce 1,000 blocks per day which can then be assembled into 24/7 renewable energy storage,” said Erich Kisi, Chief Executive Officer of MGA Thermal.

With the latest round of investment, MGA Thermal is gearing up for commercial scale as it nears the final stages of commissioning its demonstration unit — the world’s first of its kind which will provide a tangible example of the TES system in action and substantiate the scalability of the solution for potential customers and partners.

The modular blocks will be stacked into large assemblies within MGA-designed TES systems.

These TES systems are able to store millions of kilowatt hours of energy in a cheaper, safer and longer-lasting way compared to other dispatchable solutions.

A stack of 3,700 blocks in its demonstration unit about the size of a shipping container — stores enough energy to power more than 135 homes for 24 hours.

MGA Thermal Deputy Chief Executive Officer and Chief Commercial Officer Mark Croudace said that the backing of new supporters is instrumental in propelling the firm’s groundbreaking solution and driving us closer to its goal of revolutionizing the renewable energy storage landscape.

According to him, renewable energy sources come with their limitations, and the firm is plugging this gap.

“MGA Technology is perfectly aligned to generate 24/7 clean steam for harder-to-abate industrial sectors, a rapidly growing very large market domestically and globally,

“There’s no shortage of demand and we’re on track to abate 30 million tonnes of carbon dioxide by 2030 — the equivalent of more than 23 years of commercial flights from Sydney to LA,” he said.

The company’s purpose-designed miscibility gaps alloy (MGA) blocks work by absorbing and storing thermal energy made from renewably generated electricity, surplus energy from the grid or behind the meter solar farms.

This enables long-term enable long-term energy storage across solar and wind, generating 24/7 clean steam for hard-to-abate industries and retrofitted power plants.

“As energy markets continue to transition to renewables and traditional generation sources are shuttered, the long duration energy storage that MGA Thermal delivers is a key enabler to a reliable and stable grid,” said Martin Duursma, Partner of Main Sequence.

Meanwhile, Melt Ventures Managing Partner Trent Bagnall said that MGA Thermal’s unique technology has enormous potential to support the uptake and transition to clean energy.

“The transition for hard-to-abate industries is a huge challenge and one that requires us to rethink the way we capture and store energy. The adoption of MGA Thermal will be critical to plug this gap,” he said.

Varley Holdings Chief Executive Officer and MGA Director Jeff Phillips, on the other hand, said that MGA’s Thermal technology is the key to unlocking the potential of renewable energy by providing long-duration energy storage to global markets.

“MGA has the ability to cost-effectively meet large industrial scale requirements and to meet the storage demands of renewables generation expansion worldwide,” he said.

New Zealand’s Climate Venture Capital Fund Director Jez Weston also said that the firm sees thermal storage as critical to a rapid transition to a clean energy system.

Pollination Group Chief Executive Officer Martijn Wilder said that MGA Thermal’s unique technology has enormous potential to support the uptake of clean energy in Australia.

“The energy transition for the country’s heavy industry to clean energy is a huge challenge and one that requires us to rethink the way we store energy,” he said.

He opined that MGA Thermal provides on-demand zero carbon heat which can decarbonize many industrial uses as well as provide clean electricity generation.

Understorey Ventures Director Jordan Soriot also noted that MGA Thermal works to complete the build of its demonstration unit and scale operations, and he looks forward to seeing their progress and supporting them on their mission of making 24/7 renewables a reality.

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