Trinity Capital Inc. Provides $50 Million in Equipment Financing to Form Energy

Rhea-AI Summary

Trinity Capital (NASDAQ: TRIN) has committed $50 million in equipment financing to Form Energy, a technology company developing innovative multi-day energy storage systems. Form Energy specializes in iron-air battery technology capable of storing electricity for 100 hours at competitive costs. The financing will support equipment purchases for Form Energy's first high-volume battery manufacturing facility in Weirton, West Virginia. This commitment follows Form Energy's recent $455 million Series F fundraise led by T. Rowe Price. The company aims to enhance energy system reliability and sustainability through its cost-effective storage solutions.

Positive

• Secured $50 million equipment financing deal with Form Energy
• Strategic expansion into clean energy technology sector
• Partnership with well-funded company (recently raised $455M Series F)

Negative

• None.

Insights

Financial Analyst

This $50 million equipment financing deal represents a significant expansion of Trinity Capital's portfolio in the clean energy sector. The commitment follows Form Energy's substantial $455 million Series F funding round, indicating strong institutional confidence in their technology. The deal structure aligns with Trinity's business model of providing growth capital while securing returns through equipment collateral, reducing risk exposure. For Trinity Capital (TRIN), this transaction could generate meaningful interest income and strengthen their position in the emerging energy storage financing market. The partnership with a well-funded, innovative company like Form Energy, backed by major institutional investors like T. Rowe Price, suggests a strategic move to capitalize on the growing clean energy transition while maintaining a secured lending position.

Tech Expert

Form Energy's iron-air battery technology represents a potential breakthrough in grid-scale energy storage. The 100-hour storage capability significantly surpasses current lithium-ion solutions, which typically offer 4-8 hours of storage. The use of iron as a primary component is particularly noteworthy for its abundance, low cost and environmental sustainability compared to rare earth materials. The Weirton manufacturing facility marks a critical step from R&D to commercial scale production. The successful implementation of this technology could revolutionize renewable energy integration by solving the intermittency challenge of wind and solar power. This equipment financing deal is important for establishing manufacturing infrastructure and validating the commercial viability of their innovative storage solution.

PHOENIX, Dec. 16, 2024 /PRNewswire/ -- Trinity Capital Inc. (NASDAQ: TRIN) ("Trinity"), a leading provider of diversified financial solutions to growth-oriented companies, today announced the commitment of $50 million in equipment financing to Form Energy, an American technology company developing and commercializing a new class of cost-effective, multi-day energy storage systems.

Form Energy aims to reform the global electricity system through the development of innovative, low-cost multi-day energy storage solutions. The company is pioneering an iron-air battery capable of storing electricity for 100 hours at system costs competitive with legacy power plants. Founded in 2017 by a group of energy storage experts, Form Energy aims to enhance the reliability and sustainability of energy systems.

"Form Energy's groundbreaking iron-air battery technology has the potential to redefine the future of energy storage," said Cory Cramer, Director, Equipment Finance at Trinity. "We're excited to partner with the company as they scale their operations and accelerate the pathway to a clean and reliable electric grid."

This financing comes on the heels of Form Energy's $455 million Series F fundraise led by T. Rowe Price. The equipment financing will be used to finance capital equipment for the company's first high volume battery manufacturing facility located in Weirton, West Virginia.

"We are thrilled to have Trinity's support as we grow our business and increase manufacturing capacity to meet the growing demand for our multi-day energy storage system," said Charlotte Beard, CFO of Form Energy.

About Trinity Capital Inc.

Trinity Capital Inc. (Nasdaq: TRIN), an internally managed business development company, is a leading provider of diversified financial solutions to growth-stage companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans and equipment financings and equity-related investments. Trinity Capital believes it is one of only a select group of specialty lenders that has the depth of knowledge, experience and track record in lending to growth stage companies. For more information, please visit the Company's website at www.trinitycap.com.

About Form Energy

Form Energy is an American technology company developing and commercializing a new class of cost-effective, multi-day energy storage systems. Form Energy's first announced commercial product is a rechargeable iron-air battery capable of delivering electricity for 100 hours at system costs competitive with conventional power plants. Made from iron, one of the safest, cheapest, and most abundant minerals on Earth, this front-of-the-meter battery can be used continuously over a multi-day period and will enable a reliable and secure grid year-round. Learn more: Form Energy and LinkedIn.

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SOURCE Trinity Capital Inc.

FAQ

What is the value of Trinity Capital's equipment financing commitment to Form Energy?

Trinity Capital (TRIN) has committed $50 million in equipment financing to Form Energy.

How will Form Energy use Trinity Capital's $50M equipment financing?

The financing will be used to purchase capital equipment for Form Energy's first high-volume battery manufacturing facility in Weirton, West Virginia.

What type of technology is Form Energy developing with Trinity's financing?

Form Energy is developing iron-air battery technology capable of storing electricity for 100 hours at costs competitive with legacy power plants.

How much did Form Energy raise in their Series F funding before Trinity's financing?

Form Energy raised $455 million in their Series F funding round led by T. Rowe Price.

Where will Form Energy's new manufacturing facility be located?

Form Energy's new high-volume battery manufacturing facility will be located in Weirton, West Virginia.