MGA Thermal raises $5.7 million to scale industrial capabilities

Tuesday, 16 April, 2024

MGA Thermal raises $5.7 million to scale industrial capabilities

Australian clean energy company MGA Thermal has announced it has closed an additional $5.7 million in funding, taking its recent round total to approximately $14 million, to prove the scale and industrial capabilities of its thermal energy storage systems. This round was supported by investors including Main Sequence, Melt Ventures and JEKARA. It brings the total funds and grants raised to date to approximately $28.8 million.

MGA Thermal’s fundraising extension generated strong support from existing investors, validating the company’s cutting-edge Miscibility Gaps Alloy (MGA) Thermal Blocks and Thermal Energy Storage (TES) system for industrial applications. The round further reinforces the critical need for easily executed industrial decarbonisation applications for hard-to-abate industries including mining, mineral processes and manufacturing.

Towards the end of 2023, MGA Thermal initiated the commissioning process for its demonstration unit to evaluate the capabilities and boundaries of the technology. During this phase, areas for improvement were identified, leading the company to temporarily pause operations to address this.

“This was a valuable learning opportunity that will ultimately strengthen our TES system development. We’ve gained insights that will help accelerate our progress as we prepare to resume commissioning of our demonstration unit,” said Mark Croudace, CEO of MGA. “MGA Thermal remains at the forefront of clean energy innovation and large-scale energy storage. Our mission and intention of revolutionising the renewable energy landscape has never been stronger and, with the continued support of our investors and partners, we remain on track to reach our next business milestone of commercial-scale operations and energy output.”

The market need for industrial decarbonisation solutions and long-term energy storage solutions for solar, wind and other renewable energy sources remains evident and significant. MGA Thermal says its technology is a crucial piece of that puzzle.

Investment from this latest raise will support MGA Thermal’s next phase of testing to reinstate and prove the scale of its TES system and produce sufficient high-pressure, high-temperature clean steam for rising industrial demand. Steam power, the catalyst for the Industrial Revolution and a cornerstone of modern manufacturing, has seen minimal evolution in over 150 years — yet steam continues to underpin nearly every major industrial process, constituting 23% of Australia’s total energy demand.

Pressure on carbon-intensive industries has continued to accelerate, now reaching a point of critical urgency for internal stakeholders managing legislated decarbonisation requirements and targets. Shifting consumer attitudes are also placing upward pressure on companies to actively decarbonise and share verified progress. This pressure has generated a steady stream of demand from industries ranging from manufacturing to mining for MGA Thermal’s 24/7 clean steam generation.

Following its completion, the demonstration unit will be a world-first example of MGA Thermal’s TES technology in operation. The closed-loop system will showcase the future of renewable thermal energy, commencing with the charging of renewable electricity into MGA Thermal’s storage blocks before discharging clean steam production.

“We have continued working with numerous industrial partners and clients over the last six months which cannot solely rely on solar, wind and renewable energy sources to meet their decarbonisation goals,” Croudace said. “We’re excited to realise the next phase of our partnerships through the implementation of an onsite MGA Thermal TES system to supply ongoing clean steam and energy storage capabilities.”

Image caption: MGA Thermal’s Erich Kisi (Executive Chair and Chief Scientist) and Mark Croudace (CEO).

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