• Ore Energy raised $43 million in Series A funding to scale iron-air batteries designed to store renewable electricity for up to 100 hours.
• Europe already wastes about 72 TWh of renewable power annually because of grid bottlenecks, with losses projected to reach as much as 410 TWh by 2040.
• The company says its technology can provide long-duration storage at one-tenth the energy-capacity cost of lithium-ion, using iron, water and air instead of lithium or cobalt.

Ore Energy has raised $43 million to scale iron-air batteries designed to tackle a growing problem for Europe’s power system.

The technology can store renewable electricity for up to 100 hours. That could help grids manage periods when wind and solar generation exceed demand.

Plural and HV led the Series A round, with participation from Positron Ventures. The investment brings Ore Energy’s total funding to more than $61 million.

The Dutch company plans to use the capital to establish its first manufacturing facility. It is targeting gigawatt-hour-scale production in 2028.

Storage moves to the centre of Europe’s power challenge

Electricity demand is rising as AI, data centres, manufacturing and electrification expand.

Global electricity demand from data centres is expected to more than double to around 945 TWh by 2030. Demand from AI-optimised facilities could more than quadruple during the same period.

Those facilities can create sharp changes in electricity consumption. That places additional pressure on grids already managing variable renewable generation.

At the same time, Europe is producing renewable electricity that its grids cannot always absorb.

Around 72 TWh of renewable power is wasted across Europe each year because of grid bottlenecks. That is roughly equivalent to Austria’s annual electricity demand.

The European Commission’s Joint Research Centre estimates that losses could rise to as much as 410 TWh annually by 2040.

The financial cost is already significant.

The UK has spent almost $8 billion since 2011 paying renewable generators to reduce output. Wasted wind power could cost the country about $10.7 billion annually by 2030 without sufficient grid investment.

Across Europe, curtailed renewable electricity has an estimated wholesale value of about $8 billion each year.

Iron-air batteries target multi-day storage

Ore Energy was founded by Aytac Yilmaz, Rutil Özdemir and Yaiza Gonzalez Garcia.

Its batteries store and release electricity through the reversible oxidation of iron electrodes. In simple terms, the process involves rusting and “unrusting” iron.

The systems use widely available materials including iron, water and air. They therefore avoid dependence on critical minerals such as lithium and cobalt.

Ore also plans to manufacture the batteries through a European supply chain.

The company says its modular system can provide long-duration storage at one-tenth the energy-capacity cost of lithium-ion technology.

Its batteries can be installed alongside wind and solar projects. They capture electricity that grids cannot immediately absorb and release it when demand rises.

This can reduce renewable curtailment while making better use of existing grid infrastructure.

It could also provide more consistent renewable power for industrial sites and data centres. Those users increasingly need reliable electricity around the clock.

Ore has already signed a 1 GWh agreement with Dutch energy and telecoms supplier Budget Thuis. Pilot projects with French utility EDF have also tested the technology in utility settings.

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$43 million backs European manufacturing

The new capital will support Ore Energy’s first manufacturing facility. It will also fund hiring across manufacturing, commercial and operational roles.

The facility will help the company validate production at larger scale before its planned expansion in 2028.

Aytac Yilmaz, Co-founder and CEO of Ore Energy, said: “Expensive energy is the biggest barrier to growth, something European businesses and politicians know only too well. Affordable, renewable baseload power is the foundation for the next generation of manufacturing, AI infrastructure and industrial growth globally. Ore Energy’s long-duration storage is an essential part of that future. This funding will help us build our first manufacturing facility and put us on the path to gigawatt hour-scale production, making renewable electricity available whenever and wherever needed.”

Ian Hogarth, partner at Plural, said: “Long-duration energy storage is one of the biggest unsolved challenges in the energy transition, and unlocking it will transform how we power industry, scale AI data centres and drive economic growth. Aytac, Rutil and the team have combined world-class science with exceptional execution to make iron-air batteries commercially viable, whilst providing a critical technology, not just for Europe but as an important export technology too. By getting so much more out of every unit of wind we already have, Ore Energy has the potential to become one of the world’s most important energy companies.”

Maxi Pethö-Schramm, principal at HV, said: “If we want to meet the future energy demands of AI data centres while providing European industry with affordable, reliable baseload power, then we need long-duration storage. Only then will Europe have the means to compete in the complex, energy-intensive sectors that will define the continent’s future. Ore has developed a practical, scalable solution that combines breakthrough technology with a clear path to manufacturing at scale and we’re excited to back a team with the ambition to bring this critical infrastructure to market.”

What executives and investors should watch

Long-duration storage is becoming an industrial policy issue as well as an energy challenge.

Europe is expanding renewable generation while trying to strengthen energy security and industrial competitiveness. More generation alone will not solve grid congestion.

Storage can help capture electricity that would otherwise be wasted. It can also improve the economics of renewable assets and reduce pressure on transmission networks.

For investors, the opportunity extends beyond battery manufacturing. Long-duration storage could support data centres, advanced manufacturing and other power-intensive industries seeking reliable low-carbon electricity.

Ore now faces the challenge of moving from pilots to large-scale manufacturing. That will require capital, customers and reliable production capacity.

If it succeeds, iron-air storage could become part of the infrastructure linking Europe’s renewable expansion with its ambitions in AI and industrial growth.