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Breakthrough Energy Catalyst, Breakthrough Energy's project financing group, has doled out a $50 million grant for a clean iron plant in Colorado.

Why it matters: Catalyst's grants fill a financing gap by deploying capital to first-of-a-kind and demonstration projects.

Driving the news: Clean iron startup Electra said on Tuesday that it's building a demonstration facility in Jefferson County, Colorado, that will make 500 tons of its low-carbon iron per year.

The grant will help Electra "de-risk the technology" and get the company on "a path to commercialization and scaling up," Breakthrough Energy Catalyst head Mario Fernandez tells Axios Pro. 

Electra also said Meta agreed to buy environmental credits from the plant, which is supposed to be operational in mid-2026. 

Zoom out: Breakthrough Energy scaled back some of its ambitions this year, cutting staff, particularly in its policy team.

Breakthrough Energy Catalyst has awarded "hundreds of millions" of dollars in grants and equity to at least 10 projects, says Fernandez.

Catalyst launched in the summer of 2021 and made its first project equity commitment for a sustainable aviation fuel project in late 2023. 

When asked if Breakthrough Energy Catalyst is planning to raise a second fund, Fernandez said "at this point in time, we're very focused on allocating the capital we have."

The intrigue: Catalyst has helped startups like Electra by guiding them on how to make projects investible and attractive to cheaper capital sources like infrastructure funds. 

Electra closed $186 million earlier this year, led by Capricorn Investment Group and Temasek Holdings.

"We've had a major impact on all the companies that we've invested in," says Fernandez. 

Companies that have received investment for projects from Breakthrough Energy Catalyst include geothermal company Fervo Energy, storage startup Rondo Energy, and sustainable aviation fuel company Infinium.

What's next: In terms of future project financing, Breakthrough Energy Catalyst is very focused on hard-to-abate sectors, says Fernandez.

Breakthrough Energy Catalyst backs clean iron plant

The grant will go toward the company's clean iron plant in Colorado.

Two workers in blue coats and helmets operate machinery labeled Step 2 Electroplating in a factory, while two others in safety vests and helmets stand nearby amid pipes and equipment.

Startup Electra makes clean iron in its pilot facility in Boulder, Colo. Photo: Courtesy of Electra

Breakthrough Energy Catalyst, Breakthrough Energy&#x27;s project financing group, has doled out a $50 million grant for a clean iron plant in Colorado.Why it matters: Catalyst&#x27;s grants fill a financing gap by deploying capital to first-of-a-kind and demonstration projects.

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Breakthrough Energy Catalyst backs clean iron plant

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