Partnership will allow industries and other energy-intensive clients in Europe to use renewable energy to generate heat. EDP aims to develop up to 400 MW of wind and solar projects in the medium-term to power up to 2 GWh of Heat Battery installations from Rondo.
ALAMEDA, Calif., March 7, 2024 /PRNewswire/ -- EDP, a global energy company and world leader in renewable energy, has established a partnership with Rondo Energy to open a new market: the supply of clean industrial heat, at a large-scale and with an affordable cost, powered by wind and sun.
The companies are targeting Rondo heat battery installations powered by renewable electricity from decentralized solar projects and long-term contracts (Power Purchase Agreements) of wind and solar EDP assets, serving EDP's commercial and industrial customers with a complete zero-carbon heat & electricity solution.
EDP will be responsible for the development of wind and solar parks - large-scale and distributed projects. The distributed projects will be co-located with the Rondo Heat Battery, which is a zero-combustion, low-cost, and safe solution to decarbonize industries that use heat, from food and beverage industries to large chemical complexes and factories. Rondo Heat Batteries capture intermittent electric power and convert this into continuous high-temperature heat, with an option to also deliver continuous power through a combined heat and power (CHP) configuration.
Working together, the two companies are offering to EDP's core markets a pioneer solution: 24/7 renewable heat and power supply contracts that will deliver deep decarbonization and major energy savings, powered by competitive renewable electricity from EDP and made possible with the Rondo Heat Battery.
Rondo is a leading provider of zero-carbon industrial heat and power, making deep industrial decarbonization both possible and profitable. Rondo not only helps replace fossil fuels for some of the most challenging sectors to decarbonize, but its technology can also help stabilize the grid by adding a highly flexible electricity demand that can soak up renewable power when there is an abundance on the grid. Rondo Heat Batteries are proven at scale to enable low-cost heat and electricity for customers, all from intermittent renewable electricity.
EDP is a global leader in renewable energy development in large-scale and distributed generation projects, with around 16 GWs of wind and solar deployed around the world and have pledged to be 100% green by 2030. The company is also a global supplier of energy and renewable solutions from SMEs to large industrial clients. This expertise will accelerate the deployment of Rondo Heat Batteries as a simple drop-in replacement for traditional gas-fired boilers for EDP's customers who aim to lower costs and achieve deep decarbonization. Project deliveries with EDP are expected to begin in 2025.
Cooperation between EDP and Rondo started in 2023 through Free Electrons, one of EDP's flagship cleantech engagement programs that source solutions from cutting-edge cleantech companies from around the globe.
"Rondo's technology opens a major business opportunity for the decarbonization of our clients that have high energy needs and that use heat in their industrial facilities. By working with Rondo, we can meet their energy needs for renewable energy and heat in a cleaner, affordable, and reliable way. This partnership opens another decarbonization avenue that EDP wants to lead in Europe", says Vera Pinto Pereira, EDP's board member.
"The cost of solar has come down so much in the past decade that it's becoming cost-competitive with gas as a source of energy," says John O'Donnell, CEO of Rondo Energy. "We are proud to partner with EDP, whose drive, expertise, and excellence in execution have made them a world leader in delivering low-cost wind and solar power to their industrial customers. I hear again and again from major industrials, 'The factory team always hates it when the decarbonization team shows up: costs are going to go up and productivity is going to drop as we decarbonize.' We're changing that. Working together, Rondo and EDP will deliver 24-hour clean heat to industrial customers at prices competitive with gas, and without any factory facility changes. This is a game-changer for Rondo, a game-changer for EDP, and a game-changer for their customers worldwide."
This partnership unlocks a massive new market, by progressively replacing the fossil fuel burned for industrial heat, which currently releases 15% of world CO2. Repowering industrial heat with renewable energy worldwide is a 7TW opportunity and is one of the greatest opportunities of our time to combat climate change with speed and scale. The recent SystemIQ study on industrial heat found that heat battery deployment can cut world greenhouse gas emissions by 20%, which includes the benefits heat batteries bring to the electricity system and eliminate combustion of fossil gas by up to 40%.
More about EDP
EDP is a global utility with a presence in four world regions - Europe, North America, South America, and Asia. The company produces, distributes, and supplies electricity and aims to be 100% renewable by 2030. So far, the company has surpassed 85% of renewable production.
Besides being a leader in energy supply in Iberia, EDP already has a global leading position in solar Distributed Generation projects and is a leader among European-based players. With more than a decade of experience, the group has installed to date around 1.7 GWp of solar DG capacity with business and residential clients worldwide, of which 1.3 GWp through the As-a-Service model (in which EDP secures 100% of the initial investment and contracts a long-term PPA with the client).
Operating solar DG in 17 markets worldwide, the group has a strong track record and dedicated teams that have already deployed more than 130 thousand installations in residential houses (in Europe) and in small businesses to large-size corporate companies, across Europe, Asia Pacific, North America, and Brazil. This achievement showcases EDP's solid ability to secure clients globally while contributing to a more sustainable planet for all.
More about Rondo's solution
Rondo is purpose-built for industrial facilities: its Heat Batteries are constructed from proven, durable materials and are designed for seamless integration with existing industrial equipment and processes. Whether deployed as a drop-in replacement for retiring fossil-fueled heating equipment or as a resilient complement to existing systems, Rondo requires no disruptive changes to customers' operations.
Rondo currently operates the world's highest temperature, highest efficiency commercial energy storage system, at Calgren Renewable Fuels in Pixley, California. Working with its partner Siam Cement Group (SCG), Rondo is expanding the production capacity of its storage media from its current 2 GWh/yr to an industry-leading 90 GWh per year.
This clean, source of low-cost heat creates and maintains local jobs, making local industries more competitive and improving air quality. Rondo Heat Batteries are a zero-combustion technology that, unlike a gas-fired boiler, emits zero NOx, SOx, or Particulate Matter (PM) that worsens local air quality and harms community health.
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