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BFD Expert Voices - Climate Deals

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A deal between a Utah utility agency and an electricity upstart highlights a new model for how to locally manage increased energy demand.

Why it matters: Utilities, like hyperscalers, are increasingly looking to local and onsite power sources that can avoid transmission lines. 

Driving the news: Mainspring Energy, which makes a novel generator, is supplying its gear to the Utah Municipal Power Agency for a 48 MW project that is planned to be built relatively close to communities in central Utah, CEO Shannon Miller tells Axios Pro. 

The deal —which would use close to 200 of Mainspring's generators running on natural gas — is an "example of this rising requirement that utilities install local power, because transmission takes decades to build out. It's really stalled," says Miller. 

Public utilities are looking for an electricity resource that can be turned on and off quickly, has low emissions, and is reliable, says Miller. 

Public utilities can move more quickly than investor-owned utilities when it comes to adding local power that uses distribution lines, says Miller. 

These customers are also looking for low-cost electricity, and partly thanks to the extension of the tax credit that covers linear generators, Mainspring's generators are "very cost competitive," says Miller. 

Catch up quick: Mainspring makes a "linear generator" that produces electricity using various types of gas without combustion.

The Menlo Park, Calif.-based company previously raised close to $800 million, including a $258 million Series F last year, led by General Catalyst. 

Investors across rounds include Khosla Ventures, Amazon's Climate Pledge Fund, Temasek, DCVC, Lightrock, and Shell Ventures.

Last year, Mainspring faced a delay at its planned Pittsburgh factory due to uncertainty over its DOE grant. Miller says the company has "started having conversations again with the DOE."

Mainspring's facility in Monterrey, Mexico, is scaling to produce 300 MW of its generators per year.

Yes, but: The type of fuel that powers the generators can change the emissions of the projects. 

Follow the money: Miller said Mainspring is having conversations with partners that would provide financing support, potentially in the form of power purchase agreements, to customers doing large projects. 

"We're talking to a lot of the same folks that have been doing solar and wind," said Miller.

What's next: Miller says Mainspring plans to scale its production to gigawatts over the next five years.

Exclusive: Mainspring tapped for Utah utility project

The well-funded startup is also in conversations with financing partners.

Conceptual rendering of a large energy storage facility with multiple battery units and electrical equipment, set in a valley with green and brown fields and mountains under a clear blue sky.

A rendering of a 48 MW power plant using Mainspring Energy's linear generators built in Utah for the Utah Municipal Power Agency. Image courtesy of Mainspring Energy.

A deal between a Utah utility agency and an electricity upstart highlights a new model for how to locally manage increased energy demand.Why it matters: Utilities, like hyperscalers, are increasingly looking to local and onsite power sources that can avoid transmission lines.

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Exclusive: Mainspring tapped for Utah utility project

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