It's always cool to stumble upon companies that come up with a fairly simple solution to a difficult problem. Ice Energy Inc. has developed technology that stores electricity during the night when rates are cheaper and the energy is more plentiful, then uses the energy during the day to power air conditioners. The technology could help cities avoid summer blackouts and also spare utility companies from building power plants to handle times of peak demand.
Ice Energy on on Tuesday announced it has completed a $33 million first tranche of preferred Series B financing led by private equity firm Energy Capital Partners, with existing investor Second Avenue Partners also participating in the round. The investment also provides for up to $150 million in additional project capital to fund deployment of multiple utility-scale energy storage projects using Ice Energy's technology.
"Electricity is the only marketplace where the only way to deal with high peaks in demand has been to build resources that lay fallow the majority of the time, waiting to be called into service when there's huge demand," said Frank Ramirez, CEO of Ice Energy. "We help to normalize demand by better balancing through storage the supply-demand imbalances that occur that are driven by thermal events, like heat."
Ice Energy uses large storage tanks to freeze water during the night, when electricity rates are cheaper and supplies more plentiful. It then delivers cold air to air conditioning systems during the day, when rates are more expensive and delivery is less efficient. The company claims its system also has environmental benefits because it can use energy from sources such as wind power that typically are more active in the evening, while also reducing the need for power plants that are only used during peak usage. -- David Shabelman
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