Dutch startup Ore Energy has secured what it describes as continental Europe’s largest iron air battery agreement, alongside a $43 million Series A funding round that will support commercialization of its long duration energy storage technology.
The financing, led by Plural and HV, brings Ore Energy’s total capital raised to more than $61 million. The company plans to use the investment to establish its first manufacturing facility, with the goal of reaching gigawatt hour scale production by 2028.
The funding follows Ore Energy’s agreement with Dutch electricity supplier Budget Thuis to deploy 1 GWh of iron air battery storage. The partnership begins with a committed 400 MWh first phase scheduled for delivery in 2028, representing the first commercial iron air storage agreement between a European utility and a technology provider.
The project reflects a broader shift in energy storage requirements. As wind and solar generation account for a larger share of electricity production, grid operators increasingly face periods where renewable generation exceeds demand, followed by multi day periods of low renewable output. Short duration batteries can effectively shift solar generation over several hours, but they are less suited to covering prolonged periods of low wind generation that are becoming more relevant in renewable dominated electricity systems.
Ore Energy’s technology is designed to address this challenge by providing storage durations ranging from 24 to 100 hours. Unlike lithium ion batteries, which rely on critical minerals including lithium, nickel, cobalt, and graphite, the system uses iron, water, and air as its primary active materials. The batteries are deployed in modular 40 foot containerized systems that can be expanded by connecting additional units.
The technology offers a different economic proposition than conventional battery systems. Iron air batteries generally have lower round trip efficiency than lithium ion batteries, meaning a greater share of stored electricity is lost during charging and discharging. They are also physically larger for the same amount of stored energy. However, for applications requiring storage over several days, capital cost often becomes more important than energy density or efficiency.
This tradeoff is attracting increasing attention as renewable penetration rises. Electricity that would otherwise be curtailed during periods of high wind or solar output can potentially be stored for release during extended periods of lower renewable generation, reducing dependence on gas fired power plants while improving utilization of renewable assets.
Budget Thuis intends to use the storage system to absorb surplus wind generation when electricity prices are low before supplying power back to the grid during periods of tighter supply and higher market prices. The strategy reflects growing interest among electricity retailers in using long duration storage to reduce exposure to volatile wholesale electricity markets while improving supply reliability.
Ore Energy’s latest agreement builds on earlier demonstration projects. In February 2026, the company announced completion of a grid connected pilot with EDF in France, which it described as Europe’s first utility connected iron air battery demonstration. Conducted between August and November 2025, the pilot demonstrated energy storage over periods of up to four days under operational grid conditions.
The company had previously deployed another grid connected installation in Delft, the Netherlands, to evaluate integration with European electricity infrastructure before advancing toward larger commercial projects.
The commercial outlook for long duration storage remains promising but uncertain. While technologies including iron air, flow batteries, compressed air, and thermal storage have attracted growing investment, few have reached commercial deployment at significant scale. Developers must demonstrate not only technical reliability but also economic competitiveness against lithium ion batteries, pumped hydro storage, flexible electricity demand, and conventional gas generation.
Manufacturing scale represents another challenge. Ore Energy’s plan to establish its first production facility ahead of gigawatt hour scale manufacturing reflects the broader reality facing many emerging storage technologies. Commercial success will depend as much on production costs and supply chain development as on technical performance.
For Europe, the appeal extends beyond storage duration. By relying on abundant materials such as iron rather than imported critical minerals, iron air batteries could strengthen regional supply chain resilience while reducing dependence on global battery material markets that remain heavily concentrated outside Europe.
