Australia backs MGA Thermal energy storage studies with A$3.25 mil

The Australian Renewable Energy Agency is providing MGA Thermal with up to A$3.25 million ($2.29 million) to conduct front-end engineering design studies for thermal energy storage technology, aiming to help industries switch from fossil fuels to renewables, ARENA said Feb. 25.

The funding will support up to five FEED studies to accelerate commercialization of MGA Thermal's proprietary technology, which converts renewable electricity into heat, stored in patented MGA Blocks before dispatching it on demand for industrial use.

"Decarbonizing industrial process heat is critical to Australia's net zero transition, but it remains one of the hardest problems to solve," ARENA CEO Darren Miller said.

"By supporting detailed FEED studies, this project could give industrial customers greater confidence in the technical and commercial viability of TES, helping move promising projects closer to investment and deployment," Miller said.

The project addresses industrial process heat, which accounts for a significant portion of Australia's industrial emissions and remains among the most challenging sectors to decarbonize, ARENA said.

Aims to accelerate project investment

The FEED studies will produce detailed technical designs, cost estimates, delivery schedules, risk assessments and commercial strategies for five commercial opportunities with strategic customers, it said.

The work aims to accelerate project investment readiness and broader thermal energy storage adoption across Australia, ARENA said.

"ARENA's backing gives industry the capacity to move forward with technical and commercial certainty enabling investment in TES projects," MGA Thermal CEO Mark Croudace said.

The project will share insights from the FEED studies more broadly to inform industry about thermal energy storage opportunities, barriers to adoption and potential solutions to enable wider uptake across Australia, ARENA said.

The project is funded under ARENA's Industrial Transformation Stream, with the third round currently open for applications, ARENA said.