Episode 148 | Brick Batteries | Rondo Energy
The biggest issue with more renewable energy is that there will be greater concentrations of energy supply when those resources are available. My guest in Episode 136 brought up a novel idea—build energy-consuming infrastructure (in this case, data centers) that can operate when there is a surplus of renewable energy.
Oakland-based Rondo Energy has a similar solution. Their “heat batteries” can take excess electrical energy off the grid and store it as heat (1500°C/2700°F). This heat could then be used to run boilers, kilns, and cement production.
The technology is comprised of a heat source, similar to a toaster, that heats bricks in a so-called “radiation echo chamber.” Bricks have been used a heat intermediary since the invention of the “blast stove” for steel production in the 1820s.
My guest, CEO John O’Donnell, says the need for industrial heat is huge. Industry uses the more energy than any other part of the world’s economy, and heat makes up ¾ of that demand.
“We’re talking about one of the greatest business opportunities for renewable development in the world of serving this new class of load with renewable energy for the first time,” he says.
A Rondo heat battery could, for instance, “charge” over four hours and provide heat for the rest of the day. John says this opens up the possibility of electrical heating being far more economical (we also discussed the potential of electric crackers for oil and gas in Episode 146).
For instance, consider that in some cases renewable energy surpluses on the grid can result in negative energy prices. If a factory is only consuming this surplus renewable energy (i.e. average price $4 per MWh) electrical heating becomes more cost-effective than gas ($15 per MWh-equivalent).
“We are creating a new kind of load on an electricity system that does not require continuous energy. This is dispatchable generation following load,” says John. “The grid operator can control it in exactly the same precise way as they control generators on the grid. We can exactly time-match when energy is being taken to either moment-to-moment energy prices or moment to moment energy supply.”
John points out that not all intermittent energy sinks like his heat battery could be economic. While Soluna Computing’s infrastructure is more expensive, it is making money despite its intermittent nature. John says some business propositions like an expensive hydrolyzer to make hydrogen from renewable energy, might not be cost-effective like the Rondo or Soluna examples.
At the time of this recording, Rondo is about to install their first commercial units. In 2021 they raised money through Bill Gates’ Breakthrough Energy Ventures and Energy Impact Partners.
“Sometimes it takes decades for a new technology to be proven,” says John, “We were fortunate to find a foundation that was already fully proven so that we can go to scale rapidly.”
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