Excelsior and Fluence to Deploy 2.2 GWh of Energy Storage Projects Using Domestically Manufactured Battery Systems Starting in 2025
Fluence Energy (NASDAQ: FLNC) and Excelsior Energy Capital have announced an agreement to install 2.2 GWh of battery storage projects in the United States starting in 2025. The projects will use domestically manufactured batteries, modules, and supporting systems, primarily produced in Tennessee and Utah. This partnership aims to support American manufacturing, domestic supply chains, and electricity grid resilience.
Excelsior will deploy Fluence's Gridstack Pro product line, which is expected to qualify as domestic content under the Inflation Reduction Act (IRA). The agreement is seen as a step towards fostering a domestic supply chain for critical clean tech manufacturing in the U.S., directly supporting American jobs and battery storage production capacity.
Fluence Energy (NASDAQ: FLNC) ed Excelsior Energy Capital hanno annunciato un accordo per installare 2,2 GWh di progetti di accumulo batteria negli Stati Uniti a partire dal 2025. I progetti utilizzeranno batterie, moduli e sistemi di supporto prodotti a livello nazionale, principalmente realizzati in Tennessee e Utah. Questa partnership mira a supportare la manifattura americana, le catene di approvvigionamento nazionali e la resilienza della rete elettrica.
Excelsior implementerà la linea di prodotti Gridstack Pro di Fluence, che si prevede possa qualificarsi come contenuto nazionale ai sensi dell'Inflation Reduction Act (IRA). L'accordo è considerato un passo importante per promuovere una catena di approvvigionamento nazionale per la produzione di tecnologia pulita critica negli Stati Uniti, sostenendo direttamente i posti di lavoro americani e la capacità di produzione di accumulo batteria.
Fluence Energy (NASDAQ: FLNC) y Excelsior Energy Capital han anunciado un acuerdo para instalar 2.2 GWh de proyectos de almacenamiento de baterías en Estados Unidos, comenzando en 2025. Los proyectos utilizarán baterías, módulos y sistemas de soporte fabricados a nivel nacional, producidos principalmente en Tennessee y Utah. Esta asociación tiene como objetivo apoyar la manufactura americana, las cadenas de suministro nacionales y la resiliencia de la red eléctrica.
Excelsior desplegará la línea de productos Gridstack Pro de Fluence, que se espera califique como contenido nacional bajo la Ley de Reducción de la Inflación (IRA). Se considera que el acuerdo es un paso hacia el fomento de una cadena de suministro nacional para la fabricación crítica de tecnología limpia en EE. UU., apoyando directamente los puestos de trabajo estadounidenses y la capacidad de producción de almacenamiento de baterías.
Fluence Energy (NASDAQ: FLNC)와 Excelsior Energy Capital이 2025년부터 미국에 2.2 GWh의 배터리 저장 프로젝트를 설치하는 계약을 발표했습니다. 이 프로젝트는 주로 테네시주와 유타주에서 생산된 국내 제조 배터리, 모듈 및 지원 시스템을 사용합니다. 이번 파트너십은 미국 제조업, 국내 공급망 및 전력망의 회복력을 지원하는 것을 목표로 하고 있습니다.
Excelsior는 Fluence의 Gridstack Pro 제품 라인을 배포할 계획이며, 이는 인플레이션 감소법(IRA)에 따라 국내 콘텐츠로 자격을 갖출 것으로 예상됩니다. 이 계약은 미국 내 청정 기술 제조를 위한 국내 공급망을 육성하는 중요한 단계로 간주되며, 미국의 일자리와 배터리 저장 생산 능력을 직접 지원합니다.
Fluence Energy (NASDAQ: FLNC) et Excelsior Energy Capital ont annoncé un accord pour installer 2,2 GWh de projets de stockage de batteries aux États-Unis à partir de 2025. Les projets utiliseront des batteries, des modules et des systèmes de support fabriqués localement, principalement produits dans le Tennessee et l'Utah. Ce partenariat vise à soutenir la fabrication américaine, les chaînes d'approvisionnement locales et la résilience du réseau électrique.
Excelsior déploiera la gamme de produits Gridstack Pro de Fluence, qui devrait être qualifiée comme contenu national en vertu de la loi sur la réduction de l'inflation (IRA). L'accord est considéré comme un pas vers la promotion d'une chaîne d'approvisionnement nationale pour la fabrication de technologies propres critiques aux États-Unis, soutenant directement les emplois américains et la capacité de production de stockage de batteries.
Fluence Energy (NASDAQ: FLNC) und Excelsior Energy Capital haben eine Vereinbarung bekannt gegeben, um 2,2 GWh an Batteriespeicherprojekten in den Vereinigten Staaten ab 2025 zu installieren. Die Projekte werden im Inland hergestellte Batterien, Module und unterstützende Systeme nutzen, die hauptsächlich in Tennessee und Utah produziert werden. Diese Partnerschaft zielt darauf ab, die amerikanische Fertigung, nationale Lieferketten und die Resilienz des Stromnetzes zu unterstützen.
Excelsior wird die Produktlinie Gridstack Pro von Fluence einsetzen, die voraussichtlich als Inlandsinhalt gemäß dem Inflation Reduction Act (IRA) qualifiziert. Die Vereinbarung wird als Schritt zur Förderung einer nationalen Lieferkette für die kritische Herstellung sauberer Technologien in den USA angesehen, die direkt Arbeitsplätze in Amerika und die Produktionskapazität für Batteriespeicher unterstützt.
- Agreement to install 2.2 GWh of battery storage projects in the U.S.
- Use of domestically manufactured batteries and components
- Potential qualification for IRA domestic content benefits
- Support for American jobs and local economic activity
- Reduction of battery supply risks for Excelsior's projects
- None.
Insights
The agreement between Excelsior Energy Capital and Fluence to deploy 2.2 GWh of battery storage projects in the United States is a significant development in the energy storage sector. This collaboration aligns with the growing trend of localizing supply chains and boosting domestic manufacturing in the clean energy industry.
Key points to consider:
- The use of Fluence's Gridstack Pro product line, which is expected to qualify as domestic content under the Inflation Reduction Act (IRA), could potentially unlock additional tax incentives for these projects.
- The commitment to U.S. manufacturing, with battery cells produced in Tennessee and modules in Utah, supports the development of a robust domestic supply chain for energy storage components.
- This deal may serve as a blueprint for other energy storage projects, potentially accelerating the adoption of U.S.-made battery systems in the industry.
From an investor's perspective, this agreement demonstrates the growing market for grid-scale energy storage solutions and the increasing importance of domestic manufacturing in the sector. It could potentially lead to reduced supply chain risks and increased project bankability, which are important factors for long-term investment in energy storage infrastructure.
This partnership between Excelsior and Fluence is a prime example of how recent policy initiatives, particularly the Inflation Reduction Act (IRA), are reshaping the U.S. clean energy landscape. The focus on domestic manufacturing aligns perfectly with the IRA's goals of strengthening American supply chains and reducing dependence on foreign-made components.
Several policy implications stand out:
- The deal showcases the effectiveness of the IRA in incentivizing domestic production of clean energy technologies.
- It supports the Biden administration's goals of creating American jobs in the clean energy sector and enhancing energy security.
- The emphasis on grid resilience through energy storage deployment aligns with federal efforts to modernize and strengthen the U.S. electricity infrastructure.
For investors, this agreement signals a shift in the market dynamics of the energy storage sector. Projects utilizing domestically manufactured components may become more attractive due to potential tax benefits and reduced geopolitical risks. However, it's important to monitor how this trend might affect overall project costs and competitiveness in the short term.
The agreement between Excelsior Energy Capital and Fluence represents a substantial business opportunity for both companies and reflects broader trends in the energy storage market. From a financial perspective, several aspects are noteworthy:
- The 2.2 GWh deployment is a significant volume, likely translating to a contract value in the hundreds of millions of dollars, though exact figures aren't provided.
- For Fluence (NASDAQ: FLNC), this deal could potentially boost revenue and market share in the coming years, starting from 2025.
- The focus on domestic manufacturing may lead to higher upfront costs but could be offset by IRA incentives and reduced supply chain risks.
Investors should consider the following financial implications:
- Potential for improved profit margins due to domestic production efficiencies and tax incentives.
- Increased predictability in project timelines and costs due to a more secure supply chain.
- Possible competitive advantage for Fluence in the U.S. market, which could lead to further large-scale contracts.
While the long-term outlook appears positive, investors should also be aware of potential short-term challenges such as scaling up domestic manufacturing capacity and managing any associated costs. The success of this partnership could serve as a bellwether for the financial viability of domestically produced energy storage systems in the U.S. market.
Agreement supports American manufacturing, domestic supply chains, and electricity grid resilience
ARLINGTON, Va., July 30, 2024 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (“Fluence”) (NASDAQ: FLNC), a leading global provider of energy storage solutions, services, and optimization software for renewables and storage, and Excelsior Energy Capital, a leading renewable energy infrastructure investor, announced an agreement to install 2.2 GWh of battery storage projects in the United States beginning in 2025. These U.S. projects will utilize domestically manufactured batteries, modules, and supporting systems.
Under the agreement, Excelsior will deploy Fluence’s Gridstack Pro product line to deliver firm capacity and flexible power to support a more resilient U.S. electricity grid. These projects are anticipated to help foster a domestic supply chain for critical clean tech manufacturing in the U.S. and directly support American jobs and battery storage production capacity. Battery cells for the 2+ GWh of projects will primarily be manufactured in Tennessee and battery modules will be manufactured by Fluence in Utah.
Anne Marie Denman, Co-Founder and Partner of Excelsior Energy Capital, expressed her enthusiasm about the partnership, stating, “We try to identify and work with partners who think about the world similarly to us – prioritizing long term fundamentals and stability and committing to that future through decisive investments. We found a natural alignment with Fluence, impressed by their early and material commitment to domestically sourcing battery cells and their focus on siting supply chains near to the demand. With this partnership we have collectively stepped forward with Fluence as an early mover in domestic supply of BESS, which in turn serves as stabilizing force for our BESS investments in the United States.”
”We are excited to support Excelsior on the deployment of 2.2 GWh of Gridstack Pro. This deal is a testament to the competitiveness of U.S.-manufactured battery storage systems,” said John Zahurancik, Fluence President, Americas. “Excelsior and other customers see U.S. manufactured products as a valuable way to mitigate uncertainties in their projects while supporting American jobs and local economic activity.”
Announced in October, Gridstack Pro is one of the first energy storage solutions expected to qualify as domestic content under the Inflation Reduction Act (IRA). Recent guidance updates from the U.S. Department of Treasury have helped accelerate commercial activity in support of these U.S.-manufactured products.
Chris Frantz, Partner of Excelsior Energy Capital, added, “The Excelsior team is excited about this new agreement with Fluence. It reduces battery supply risks for our projects and fosters a strong partnership with an industry leader. Together, we will leverage our strengths to drive sustainable growth and innovation in the industry.”
Fluence, one of the largest suppliers of energy storage systems, began creating a diversified supply chain several years ago in an effort to support the aggressive volume of demand for large-scale, high performance, and highly financeable systems. Disruptions in the supply chain from war, terrorism, weather, trade barriers, and geopolitical uncertainties have created large impacts across the renewable sector. Energy storage is one of the key enabling technologies for a reliable power grid, requiring more options for safe, high quality, and low risk system supply to support leading power developers and utilities. By working with Fluence, Excelsior is showing its ongoing commitment to using U.S.-manufactured technologies as the company grows its clean energy portfolio, having recently announced a 2 GW supply agreement for domestically produced solar panels.
About Fluence
Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader in energy storage solutions, services, and optimization software for renewables and storage. With a presence in 47 markets globally, Fluence provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and AI-enabled optimization software for managing and optimizing renewables and storage from any provider. The company is transforming the way we power our world by helping customers create more resilient and sustainable electric grids. For more information, visit our website, or follow us on LinkedIn or X. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.
About Excelsior Energy Capital
Excelsior Energy Capital is a renewable energy infrastructure fund focused on middle-market investments in wind, solar and battery storage plants, and businesses across North America. The highly specialized team brings over 100 years of combined experience and a comprehensive set of strategic, financial, legal and operational expertise; making Excelsior Energy Capital a valuable partner for developers and operators, and a trusted manager for investors. Based in Minneapolis, Minnesota, the firm was founded in 2017 with two active funds totaling over
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Fluence Contacts
Media Contact
Shayla Ebsen, Director of Communications
Email: media.na@fluenceenergy.com
Phone: +1 (605) 645-7486
Analyst Contact
Lexington May, Vice President, Finance & Investor Relations
Email: investorrelations@fluenceenergy.com
Phone: +1 (713) 909-5629
Excelsior Contacts
Excelsior Energy Capital – excelsior@backbaycommunications.com
FAQ
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