EP.204 Mateo Jaramillo, Co-founder & CEO, Form Energy
Jul 30, 2024
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Mateo Jaramillo, co-founder and CEO of Form Energy, previously oversaw Tesla's stationary energy storage program. He dives into the world of iron-air batteries and their potential to revolutionize long-duration energy storage. The conversation highlights the unique benefits of iron and air compared to lithium-ion batteries, and explores the challenges of scaling clean tech manufacturing. Jaramillo also discusses market dynamics and the critical need for diverse energy solutions to achieve a carbon-free grid.
Form Energy's innovative iron-air battery technology addresses the need for long-duration energy storage, enhancing grid reliability at a lower cost.
The current market frameworks must evolve to adequately value long-duration storage solutions like Form Energy's to ensure proper compensation and integration.
Deep dives
Form Energy's Unique Long-Duration Storage Solution
Form Energy is pioneering long-duration energy storage through its innovative iron-air battery technology. This technology addresses a critical gap in the energy storage market, specifically the need for solutions that can provide energy over multiple days, which traditional lithium-ion batteries cannot efficiently accomplish. The iron-air battery operates by rusting and unrusting iron through a reversible chemical process, making it an economically viable option due to the abundance of iron and air as active materials. In contrast to lithium-ion batteries, which are costly and more suited for short-term applications, Form Energy's product enables low-capital expenditures for grid applications, thus enhancing the grid's reliability at lower costs.
Founders' Journey and Market Insights
Mateo Jaramillo and his co-founders transitioned from their successful experiences in the energy sector, particularly at Tesla, to found Form Energy with a vision of solving unmet challenges in energy storage. They identified a significant market need for prolonged energy storage capabilities, driven by discussions with utility executives who required solutions for reliability beyond what lithium-ion offered. The assurance of a valuable market opportunity and no major technical roadblocks in their proposed solution provided the co-founders with the confidence to pursue their venture. Their collective expertise in battery technology and energy markets positions them uniquely to capitalize on this emerging space.
The Importance of Long-Duration Storage for Grid Reliability
Long-duration storage is viewed as essential for optimizing the electric grid by mitigating the intermittency associated with renewable energy sources. Without such energy storage solutions, the reliance on traditional thermal resources and the overbuilding of renewable infrastructure can inflate costs and diminish efficiency. Form Energy's iron-air batteries can help alleviate these issues by providing cost-effective energy storage that enhances overall grid reliability by serving as a backup resource for extended periods, especially during adverse weather conditions. As grids evolve towards more renewables, the ability to integrate diverse energy storage solutions like those offered by Form Energy will directly impact the future cost and reliability of electricity systems.
Market Dynamics and Future Growth Opportunities
The evolution of energy markets necessitates a reassessment of how assets are valued, particularly concerning the integration of long-duration storage technologies. Current market frameworks inadequately recognize the reliability and extended duration benefits provided by solutions like Form Energy’s offering, which necessitate adjustments in market design to ensure appropriate compensation for such resources. Form Energy is strategically aligning its deployment plans with integrated utilities, which are required to seek out solutions that enhance reliability while meeting regulatory mandates. Looking ahead, as market structures adapt to recognize the true value of multi-day storage, Form Energy is positioned to become an integral part of a diversified energy portfolio that incorporates various resource types for competitive and sustainable electricity generation.
In this episode of Energy Unplugged, we're delighted to welcome Mateo Jaramillo, co-founder and CEO of Form Energy. Mateo joins our Managing Director for North America, Oliver Kerr, and Zachary Edelen, a Senior Associate from our Austin office, to discuss long-duration battery storage.
Before co-founding and directing Form Energy, Mateo served as the Vice President of Products and Programs for Tesla's stationary energy storage program. In this role, he was responsible for defining Tesla Energy's product line and business model definition, as well as overseeing global policy and business development. Prior to working at Tesla, Mateo was the Chief Operating Officer and a founding member of Gaia Power Technologies, a pioneering distributed energy storage company. Currently, he also serves on the Board of Directors for the American Clean Power Association.
Main topics include the following:
What are iron-air batteries and how do they work?
The cost, duration, and efficiency of long-duration storage
Are there any potential major competitors or alternatives to long-duration energy storage?
