Heliogen Concludes Capella Demonstration, Advancing Next-Generation Concentrated Solar Technology

Rhea-AI Summary

Heliogen Inc. (OTCQX: HLGN) has announced the completion of Project Capella, a pioneering demonstration project for Generation 3 Concentrated Solar Power (CSP) technology. The project, jointly funded by Woodside Energy and the US Department of Energy, aimed to develop a 5-MWe concentrated solar power plant.

While achieving several critical milestones in prototyping and design, including Front-End Engineering Design (FEED) completion and Centrec particle receiver development, the project concluded after the FEED phase due to cost escalation. Both companies decided not to proceed with construction but remain open to future collaboration.

Heliogen is now shifting its focus to meet growing demand for dispatchable, low-carbon energy solutions for data centers using their Gen 2 CSP technology, which is already commercially proven. The project successfully advanced key technological innovations and established important foundations for future developments in CSP technology.

Positive

• Completed Front-End Engineering Design (FEED) for first-of-its-kind commercial-scale CSP plant
• Successfully developed and prototyped Centrec particle receiver technology
• Secured key site approvals including Federal Aviation Administration authorization
• Established partnerships with industry leaders for supporting technologies

Negative

• Project construction cancelled due to cost escalation
• Failed to advance beyond FEED phase to actual implementation
• Shift from Gen 3 to Gen 2 CSP technology indicates challenges with advanced technology commercialization

Insights

Financial & Energy Technology Analyst

The conclusion of the Capella demonstration project reveals important insights about Heliogen's strategic direction and market positioning. While the project achieved notable technical milestones in Gen 3 CSP development, the decision to halt construction due to cost escalation signals significant challenges in the commercialization pathway.

The key strategic pivot here is Heliogen's shift toward Gen 2 CSP technology specifically targeting the data center market. This is particularly noteworthy as data center energy demand is projected to grow exponentially, with global data center electricity consumption expected to reach 8% of total worldwide usage by 2030. The company's focus on dispatchable, reliable low-carbon energy solutions aligns well with data centers' need for 24/7 renewable power.

However, investors should consider several critical factors:

• The company's ability to compete in the Gen 2 CSP market, where established players already operate at scale
• The financial implications of the project's conclusion, particularly regarding the efficient use of capital and development resources
• The market differentiation potential of Heliogen's machine-learning software enhancement to Gen 2 CSP technology
• The company's cash runway and ability to execute on its revised strategy, given its current market capitalization of about $11.5 million

While the technical achievements in particle receiver development and modeling tools demonstrate R&D capabilities, the shift from Gen 3 to Gen 2 technology represents a more conservative approach focused on near-term commercial viability. This could potentially accelerate revenue generation but may also limit the company's technological competitive advantage in the longer term.

The continuation of the relationship with Woodside Energy for potential future collaborations provides some strategic optionality, but the company's success will largely depend on its ability to rapidly commercialize its Gen 2 CSP solution in the data center market while managing its financial resources.

Through bold strides in engineering and prototyping, the Capella project propels Generation 3 CSP technology forward toward commercialization

PASADENA, Calif.--(BUSINESS WIRE)-- Heliogen Inc. (OTCQX: HLGN) (the “Company”), a leading provider of concentrating solar energy technology, today announced the conclusion of Capella, a first-of-a-kind demonstration project. Jointly funded by Woodside Energy (USA) Inc., a wholly-owned subsidiary of global energy company Woodside Energy Group Ltd (NYSE: WDS; ASX: WDS) (“Woodside”), and the US Department of Energy, the project marked a significant milestone in the journey toward realizing lower-cost lower carbon energy solutions through a novel form of concentrating solar power (CSP) technology that is commonly referred to as “Generation 3” or “Gen 3”.

Capella advanced key technological innovations, targeting the deployment of a 5-MWe concentrated solar power plant. The project concluded after the front-end engineering and design phase, at which point Heliogen and Woodside decided not to pursue construction of the project due to cost escalation. Both parties continue to evaluate opportunities for further collaboration in deploying CSP technology.

“The Capella project achieved several first-ever milestones in prototyping and design, unlocking key learnings critical to improving the techno-economics for Gen 3 CSP,” said Christie Obiaya, CEO of Heliogen.

“We are deeply appreciative of the exceptional collaboration from Woodside,” continued Obiaya. “Our core focus now is on the massive demand growth for dispatchable, reliable low-carbon energy solutions driven by data centers. We are well-positioned to help meet those needs through deployment of our solution that leverages Gen 2 CSP, which is already proven and commercially deployed at scale, further enhanced by Heliogen’s machine-learning software.”

The intent of Gen 3 CSP innovation is to generate higher temperatures than traditional concentrated solar. In contrast, Gen 2 CSP is a mature technology that is successfully operating around the world and has proven capable of providing dispatchable thermal energy at a reduced cost and timeline compared to many other lower carbon energy alternatives.

“Through the collaboration between Woodside and Heliogen on Project Capella, we have demonstrated significant advances across a number of key work scopes. We thank the Heliogen team for its innovation and technical expertise on the project,” said Jason Crusan, Vice President of Energy Solutions, Woodside Energy.

KEY ACHIEVEMENTS OF CAPELLA PROJECT

The project completed several critical milestones, including:

• Front-End Engineering Design (FEED) Completion: Delivered FEED and a Class 2 cost estimate for a commercial-scale CSP plant––the first of its kind.
• Centrec Receiver Development: Advanced the Centrec particle receiver from R&D to prototype scale, incorporating novel design improvements and demonstrating successful heated particle flow.
• Supply Chain Partner Collaboration: Partnered with industry leaders to achieve significant progress on supporting technologies, such as supercritical CO₂ turbine technology with Hanwha Power Systems, and a novel particle heat exchanger (PHX) design.
• Modeling and Simulation Tools: Developed performance and cost modeling tools for Gen 3 particle systems.
• Permitting Progress: Secured key site approvals, including authorization from the Federal Aviation Administration, helping to lay a foundation for future projects.

About Heliogen

Heliogen is a renewable energy technology company focused on decarbonizing industry and empowering a sustainable civilization. The company’s concentrating solar energy and thermal storage systems aim to deliver carbon-free heat, steam, or power at scale to support round-the-clock industrial operations. Powered by AI and computer vision, Heliogen is focused on providing robust clean energy solutions that accelerate the transition to renewable energy, without compromising reliability, availability, or cost. For more information about Heliogen, please visit heliogen.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding expectations for lower-cost lower carbon energy solutions through Gen 3 CSP technology, demand growth for dispatchable, reliable low-carbon energy solutions driven by data centers and Heliogen’s ability to meet that demand, and future collaboration opportunities in deploying CSP technology. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our financial and business performance, including risk of uncertainty in our financial projections and business metrics and any underlying assumptions thereunder; (ii) changes in our business and strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; (iii) our ability to execute our business model, including market acceptance of our planned products and services and achieving sufficient production volumes at acceptable quality levels and prices; (iv) our ability to access sources of capital to finance operations, growth and future capital requirements; (v) our ability to maintain and enhance our products and brand, and to attract and retain customers; (vi) our ability to scale in a cost effective manner; (vii) changes in applicable laws or regulations; (viii) developments and projections relating to our competitors and industry; (ix) unexpected adjustments and cancellations related to our backlog; (x) our ability to protect our intellectual property; and (xi) whether the objectives of the strategic alternative review process will be achieved. You should carefully consider the foregoing factors and the other risks and uncertainties disclosed in the “Risk Factors” section in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023, as supplemented in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, and other documents filed by Heliogen from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Heliogen assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250123510227/en/

Heliogen Investor Contact:

Phelps Morris

Chief Financial Officer

Phelps.Morris@Heliogen.com

Heliogen Media Contact:

Sam Padreddii

Manager, Corporate Communications

Sam.Padreddii@Heliogen.com

Source: Heliogen Inc.

FAQ

Why did Heliogen (HLGN) and Woodside cancel the Capella project construction?

The construction of the Capella project was cancelled due to cost escalation after the Front-End Engineering Design (FEED) phase, although both companies remain open to future collaboration.

What were the main achievements of Heliogen's Capella demonstration project?

The project achieved several milestones including FEED completion, Centrec particle receiver development, supply chain partnerships, modeling tools development, and securing key site approvals from the Federal Aviation Administration.

What is Heliogen's (HLGN) new strategic focus after Capella?

Heliogen is now focusing on meeting the growing demand for dispatchable, low-carbon energy solutions for data centers using their proven Gen 2 CSP technology rather than Gen 3.

What was the planned capacity of Heliogen's Capella CSP plant?

The Capella project was targeting the deployment of a 5-MWe concentrated solar power plant.