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The effort to preserve the beloved landmark from sea-level rise epitomizes an existential struggle for historic waterfronts

When San Francisco’s Ferry Plaza Farmers Market is in full Saturday swing, one way to dodge the determined foodies and casual browsers is to retreat to the plaza just 30 steps south of the Ferry Building. It sits atop three tiers of dark-veined granite, accessible by two flights of nine stairs or a ramp that ascends along the water to a trio of ferry gates that, like the plaza, were completed in 2021.
The chosen height hints at what someday might be the norm — the elevation where San Francisco’s constructed shoreline will need to be to serve as a protective buffer between the natural bay and the developed city. Here, more than any place on today’s Embarcadero, you confront the existential predicament facing the Ferry Building, nearby piers, and resurrected waterfronts in other coastal American cities: sea level rise.
According to projections that were modeled by climate scientists in 2018, San Francisco Bay faces a 66% likelihood that average daily tides will rise 40 inches by 2100, with roughly half of the increase during the next 50 years and the pace accelerating after that. The same report includes an extreme but peer-reviewed scenario where the projected increase soars to 93 inches during that same period — making grim numbers profoundly worse.
So-called king tides already arrive monthly during the winter, a natural occurrence related to the moon’s gravitational pull that can send waves washing past Pier 14 into the Embarcadero’s protected bike lane. Behind Pier 5, water swells up and over the edge of the public walkway. For now, that occasional splash of excitement is less fearsome than fun — but if current forecasts are anywhere near accurate, future generations will face a double bind.
The threat isn’t just that tides might creep upward as temperatures increase. It’s that the extreme rainfall patterns we already experience will grow more intense, those destructive storms that in recent years have introduced terms like atmospheric rivers and bomb cyclones into conversations about the weather. For instance, if daily tides are a foot higher in 2050 than they are now — the “likely” projection — a major storm could surge 36 inches beyond where it would register today.
In the case of the Embarcadero, the hypothetical one-foot rise coupled with an “intense storm” — the sort that in the past might occur every five years — would send bay waters rushing toward the roadway in a dozen locations if the storm hit when winds were brisk and the tide was high. Kick the downpour’s fervor to the scale of the bomb cyclone that hit the Bay Area in October 2021 — a day-long deluge that was the equivalent of what scientists call a 25-year storm — and the Embarcadero could be closed for nearly a mile between Folsom Street and Pier 9. Water spilling across the roadway could flow down into the BART and Muni subway beneath Market Street, potentially paralyzing both systems.
The new plaza and the elevated ferry gates might rebuke the surging tides to come, but the landmark next door would be more vulnerable than ever. The Ferry Building has ridden out many perils since opening day in 1898, from earthquakes and the onslaught of automobiles to political tumult, misguided renovations, and the wear and tear of urban life. Now it faces the implacable though seemingly far-off threat of rising waters, as if nature was determined to restore the marshes and tidal flats that long-dead San Franciscans covered and forgot.
The addition of the granite plaza is an indicator of the danger facing the icon to its north. And it’s not as if our hefty landmark with that vaulted concrete foundation can be jacked up out of harm’s way.
Or can it?

Steven Reel headed west from Philadelphia in 1992 to earn a structural engineering degree at Stanford University because, he says now, “structural engineering means ‘earthquakes’ at Stanford, and earthquakes make structural engineering a lot more interesting.” The Bay Area was a good place to live, and local governments were investing heavily in seismic upgrades after the 1989 Loma Prieta earthquake. In 2010, Reel successfully applied for a job at the Port of San Francisco and, to his surprise, grew intrigued by the historic aspects of making an urban shoreline function in the here and now.
“I’d start studying old engineering drawings for projects and then go down the rabbit hole,” recalls Reel, an easygoing bureaucrat with a beard that approached Rasputin-like proportions during the pandemic (he since has trimmed it back). He also began to notice regional planners stressing sea level rise in meetings.
His first project at the port was Brannan Street Wharf, where two ramshackle piers midway between the Bay Bridge and the ballpark were torn out and replaced by a four-hundred-foot-long triangular green. The response to climate concerns involved a slight upward incline from the Embarcadero promenade and a concrete lip along the edge (the same move since used for the plaza near the Ferry Building).
There was another natural threat to consider — the possibility that a tremor on the scale of the Great 1906 San Francisco Earthquake could strike again. Would the Ferry Building and the seawall hold, as before? Or would the three-mile-long agglomeration of boulders and concrete give way after all this time? Reel found himself with a new job title — manager of the seawall program — and responsibilities that included a $450,000 study with consultants being told to diagnose the barrier’s health and prescribe possible remedies.
The findings, released in April 2016, answered some questions and posed a host of others.
The good news is that even with a cataclysmic earthquake, “complete failure of the seawall is unlikely.” The rocks and boulders that form a dike beneath the concrete wouldn’t scatter like marbles. The Financial District wouldn’t be sucked into the bay toward Oakland. But the combination of sandy fill atop soft mud, behind an aged barrier with thousands of potentially moving parts of varying size, is a dangerous combination. The fill was “subject to liquefaction,” the report confirmed, making it likely that the seawall could slump and lurch outward.
“A repeat of the 1906 earthquake is predicted to cause as much as $1b in damage and $1.3b in disruption costs,” the report declared. Better to strengthen the entire three-mile seawall before a disaster struck — though the cost estimates to do this were “on the order of $2 to $3 billion.” The consultants also emphasized that even with an upgraded seawall, the slow-moving threat posed by sea level rise “will necessitate intervention ... over the next 100 years.” Figure that in, and the combined price tag approached $5 billion.
The city approached voters with a $425 million bond in 2018 to fund the first round of projects; smartly, the campaign emphasized seismic concerns, lightening the ominous message with such creative touches as a neighborhood brewpub’s limited-release sour beer dubbed “Seawall’s Sea Puppy.” The bond passed with 83% support. “The earthquake message resonates,” Reel says. “Without it, I don’t think all this would have moved forward as it did.”
It makes sense to tackle the easiest fixes early, given the seismic threats posed to the Bay Area by the San Andreas and other faults. Breaking a daunting future into manageable parts also allows the Port and City Hall to shift attention from the more eye-popping aspects of climate adaptation — such as how potions of the Embarcadero might need to be raised as much as seven feet to prepare for 2100’s more extreme projected water levels.
Which leads us back to the Ferry Building.
As so often has been the case during the landmark’s history, far more is at stake than one particular structure. If the Ferry Building in its heyday represented San Francisco’s prominence within the region and beyond, in the 21st century it embodies how urban waterfronts can be reinvented without sacrificing their past identities. At the same time, the building remains essentially the same as it was in 1898 — a heavy structure of concrete and steel that covers two acres and rises from a foundation atop bundled piles of tree trunks.
The assumption for the past 25 years has been that the landmark’s impressive performance in 1906 and 1989 should ensure similar resilience when the next big earthquake hits. But the most recent geotechnical exam revealed a weak link: the section of the seawall behind the Ferry Building rests in a trench filled with liquefiable sand rather than the rubble that underlies almost everything else. That detail places “the 125-year-old Ferry Building Seawall, building substructure, and surrounding piers at risk of damage in large earthquakes,” according to the most recent Port update.
This isn’t just a concern for architecture buffs. San Francisco’s disaster relief plans treat the outdoor spaces around the landmark as crucial spots for retreat and regrouping. In a worst-case scenario where the Bay Bridge is knocked out of commission, as was the case in 1989, reliable access to a functioning ferry system will be crucial for evacuating people from the downtown scene safely. The new plaza can also serve as a staging area for bringing medical aid and supplies into the city over the water. Regular people who need to connect with family and friends know there won’t be confusion if someone says “let’s find each other at the Ferry Building.”
One solution could be to erect an entirely new seawall around the edge of the Ferry Building’s foundation, in essence creating a basement beneath it. And if you’re doing that, it’s only one more step — albeit sure to be costly and complex — to raise the entire building by several feet and resolve the challenge of sea level rise for another lifetime or two.
“With the Ferry Building, the one thing I know about it is that it has to be saved … it has such a strong identification with the city,” Elaine Forbes, the executive director for the Port, says. “So I talked myself into okaying this big expenditure.”

Realistically, adaptation planning in San Francisco and other waterfront cities will involve a variety of responses at a variety of scales. But the situation facing the Ferry Building, as at so many times in its history, is unique unto itself. This time around, the task is to remake a bustling civic icon so that life seemingly goes on as before. If anyone has challenged the need to invest what likely will be hundreds of millions of dollars to save a 125-year-old structure, the argument has gained no traction.
“The price would have to be really, really high before anything would think twice” about whether the Ferry Building’s salvation is more trouble than it’s worth, Reel says. He describes how during the public discussions on what to do about the Embarcadero, attendees would be asked to list priorities. What are you concerned about? What do you love?
In the latter category, Reel recalls, “the Ferry Building kept getting named. People want to see it forever.”
This still leaves an array of unanswered questions. How to decide how big of an engineering gamble to take. Whether to raise the structure, as implausible as that sounds, or build a new seawall to the east that would destroy the immediacy of the connection to the water. And what becomes of the tenants inside the building, especially the locally based merchants, if the building once again becomes a construction zone.
In a much different context, one San Franciscan offered a fatalistic take on what the future might hold: Lawrence Ferlinghetti.
Four years before his death in 2021, still living in North Beach, Ferlinghetti sat down in a neighborhood café to talk with a Washington Post writer about the beat era, the 97-year-old poet’s life, and his enduring love for the city that he embraced long ago. At one point, the writer asked Ferlinghetti about what might happen after he was gone.
“It’s all going to be underwater in 100 years or maybe even 50,” Ferlinghetti said with a half-smiled shrug. “The Embarcadero is one of the greatest esplanades in the world. On the weekends, thousands of people strut up and down like it’s the Ramblas in Barcelona. But it’ll all be underwater.”
This article was excerpted and condensed from John King’s book Portal: San Francisco’s Ferry Building and the Reinvention of American Cities, available on Nov. 7 from W. W. Norton & Company ©2023.
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With policy chaos and disappearing subsidies in the U.S., suddenly the continent is looking like a great place to build.
Europe has long outpaced the U.S. in setting ambitious climate targets. Since the late 2000s, EU member states have enacted both a continent-wide carbon pricing scheme as well as legally binding renewable energy goals — measures that have grown increasingly ambitious over time and now extend across most sectors of the economy.
So of course domestic climate tech companies facing funding and regulatory struggles are now looking to the EU to deploy some of their first projects. “This is about money,” Po Bronson, a managing director at the deep tech venture firm SOSV told me. “This is about lifelines. It’s about where you can build.” Last year, Bronson launched a new Ireland-based fund to support advanced biomanufacturing and decarbonization startups open to co-locating in the country as they scale into the European market. Thus far, the fund has invested in companies working to make emissions-free fertilizers, sustainable aviation fuel, and biofuel for heavy industry.
It’s still rare to launch a fund abroad, and yet a growing number of U.S. companies and investors are turning to Europe to pilot new technology and validate their concepts before scaling up in more capital-constrained domestic markets.
Europe’s emissions trading scheme — and the comparably stable policy environment that makes investors confident it will last — gives emergent climate tech a greater chance at being cost competitive with fossil fuels. For Bronson, this made building a climate tech portfolio somewhere in Europe somewhat of a no-brainer. “In Europe, the regulations were essentially 10 years ahead of where we wanted the Americas and the Asias to be,” Bronson told me. “There were stricter regulations with faster deadlines. And they meant it.”
Of the choice to locate in Ireland, SOSV is in many ways following a model piloted by tech giants Google, Microsoft, Apple, and Meta, all of which established an early presence in the country as a gateway to the broader European market. Given Ireland’s English-speaking population, low corporate tax rate, business-friendly regulations, and easy direct flights to the continent, it’s a sensible choice — though as Bronson acknowledged, not a move that a company successfully fundraising in the U.S. would make.
It can certainly be tricky to manage projects and teams across oceans, and U.S. founders often struggle to find overseas talent with the level of technical expertise and startup experience they’re accustomed to at home. But for the many startups struggling with the fundraising grind, pivoting to Europe can offer a pathway for survival.
It doesn’t hurt that natural gas — the chief rival for many clean energy technologies — is quite a bit more expensive in Europe, especially since Russia’s invasion of Ukraine in 2022. “A lot of our commercial focus today is in Europe because the policy framework is there in Europe, and the underlying economics of energy are very different there,” Raffi Garabedian, CEO of Electric Hydrogen, told me. The company builds electrolyzers that produce green hydrogen, a clean fuel that can replace natural gas in applications ranging from heavy industry to long-haul transport.
But because gas is so cheap in the U.S., the economics of the once-hyped “hydrogen economy” have gotten challenging as policy incentives have disappeared. With natural gas in Texas hovering around $3 per thousand cubic feet, clean hydrogen just can’t compete. But “you go to Spain, where renewable power prices are comparable to what they are in Texas, and yet natural gas is eight bucks — because it’s LNG and imported by pipeline — it’s a very different context,” Garabedian explained.
Two years ago, the EU adopted REDIII — the third revision of its Renewable Energy Directive — which raises the bloc’s binding renewable share target to 42.5% by 2030 and broadens its scope to cover more sectors, including emissions from industrial processes and buildings. It also sets new rules for hydrogen, stipulating that by 2030, at least 42% of the hydrogen used for industrial processes such as steel or chemical production must be green — that is, produced using renewable electricity — increasing to 60% by 2035.
Member countries are now working to transpose these continent-wide regulations into national law, a process Garabedian expects to be finalized by the end of this year or early next. Then, he told me, companies will aim to scale up their projects to ensure that they’re operational by the 2030 deadline. Considering construction timelines, that “brings you to next year or the year after for when we’re going to see offtakes signed at much larger volumes,” Garabedian explained. Most European green hydrogen projects are aiming to help decarbonize petroleum, petrochemical, and biofuel refining, of all things, by replacing hydrogen produced via natural gas.
But that timeline is certainly not a given. Despite its many incentives, Europe has not been immune to the rash of global hydrogen project cancellations driven by high costs and lower than expected demand. As of now, while there are plenty of clean hydrogen projects in the works, only a very small percent have secured binding offtake agreements, and many experts disagree with Garabedian’s view that such agreements are either practical or imminent. Either way, the next few years will be highly determinative.
The thermal battery company Rondo Energy is also looking to the continent for early deployment opportunities, the startup’s Chief Innovation Officer John O’Donnell told me, though it started off close to home. Just a few weeks ago, Rondo turned on its first major system at an oil field in Central California, where it replaced a natural gas-powered boiler with a battery that charges from an off-grid solar array and discharges heat directly to the facility.
Much of the company’s current project pipeline, however, is in Europe, where it’s planning to install its batteries at a chemical plant in Germany, an industrial park in Denmark, and a brewery in Portugal. One reason these countries are attractive is that their utilities and regulators have made it easier for Rondo’s system to secure electricity at wholesale prices, thus allowing the company to take advantage of off-peak renewable energy rates to charge when energy is cheapest. U.S. regulations don’t readily allow for that.
“Every single project there, we’re delivering energy at a lower cost,” O’Donnell told me. He too cited the high price of natural gas in Europe as a key competitive advantage, pointing to the crippling effect energy prices have had on the German chemical industry in particular. “There’s a slow motion apocalypse because of energy supply that’s underway,” he said.
Europe has certainly proven to be a more welcoming and productive policy environment than the U.S., particularly since May, when the Trump administration cut billions of dollars in grants for industrial decarbonization projects — including two that were supposed to incorporate Rondo’s tech. One $75 million grant was for the beverage company Diageo, which planned to install heat batteries to decarbonize its operations in Illinois and Kentucky. Another $375 million grant was for the chemicals company Eastman, which wanted to use Rondo’s batteries at a plastics recycling plant in Texas.
While nobody knew exactly what programs the Trump administration would target, John Tough, co-founder at the software-focused venture firm Energize Capital, told me he’s long understood what a second Trump presidency would mean for the sector. Even before election night, Tough noticed U.S. climate investors clamming up, and was already working to raise a $430 million fund largely backed by European limited partners. So while 90% of the capital in the firm’s first fund came from the U.S., just 40% of the capital in this latest fund does.
“The European groups — the pension funds, sovereign wealth funds, the governments — the conviction they have is so high in climate solutions that our branding message just landed better there,” Tough told me. He estimates that about a quarter to a third of the firm’s portfolio companies are based in Europe, with many generating a significant portion of their revenue from the European market.
But that doesn’t mean it was easy for Energize to convince European LPs to throw their weight behind this latest fund. Since the American market often sets the tone for the global investment atmosphere, there was understandable concern among potential participants about the performance of all climate-focused companies, Tough explained.
Ultimately however, he convinced them that “the data we’re seeing on the ground is not consistent with the rhetoric that can come from the White House.” The strong performance of Energize’s investments, he said, reveals that utility and industrial customers are very much still looking to build a more decentralized, digitized, and clean grid. “The traction of our portfolio is actually the best it’s ever been, at the exact same time that the [U.S.-based] LPs stopped focusing on the space,” Tough told me.
But Europe can’t be a panacea for all of U.S. climate tech’s woes. As many of the experts I talked to noted, while Europe provides a strong environment for trialing new tech, it often lags when it comes to scale. To be globally competitive, the companies that are turning to Europe during this period of turmoil will eventually need to bring down their costs enough to thrive in markets that lack generous incentives and mandates.
But if Europe — with its infinitely more consistent and definitively more supportive policy landscape — can serve as a test bed for demonstrating both the viability of novel climate solutions and the potential to drive down their costs, then it’s certainly time to go all in. Because for many sectors — from green hydrogen to thermal batteries and sustainable transportation fuels — the U.S. has simply given up.
Current conditions: The Philippines is facing yet another deadly cyclone as Super Typhoon Fung-wong makes landfall just days after Typhoon Kalmaegi • Northern Great Lakes states are preparing for as much as six inches of snow • Heavy rainfall is triggering flash floods in Uganda.
The United Nations’ annual climate conference officially started in Belém, Brazil, just a few hours ago. The 30th Conference of the Parties to the UN Framework Convention on Climate Change comes days after the close of the Leaders Summit, which I reported on last week, and takes place against the backdrop of the United States’ withdrawal from the Paris Agreement and a general pullback of worldwide ambitions for decarbonization. It will be the first COP in years to take place without a significant American presence, although more than 100 U.S. officials — including the governor of Wisconsin and the mayor of Phoenix — are traveling to Brazil for the event. But the Trump administration opted against sending a high-level official delegation.
“Somehow the reduction in enthusiasm of the Global North is showing that the Global South is moving,” Corrêa do Lago told reporters in Belém, according to The Guardian. “It is not just this year, it has been moving for years, but it did not have the exposure that it has now.”

New York regulators approved an underwater gas pipeline, reversing past decisions and teeing up what could be the first big policy fight between Governor Kathy Hochul and New York City Mayor-elect Zohran Mamdani. The state Department of Environmental Conservation issued what New York Focus described as crucial water permits for the Northeast Supply Enhancement project, a line connecting New York’s outer borough gas network to the fracking fields of Pennsylvania. The agency had previously rejected the project three times. The regulators also announced that the even larger Constitution pipeline between New York and New England would not go ahead. “We need to govern in reality,” Hochul said in a statement. “We are facing war against clean energy from Washington Republicans, including our New York delegation, which is why we have adopted an all-of-the-above approach that includes a continued commitment to renewables and nuclear power to ensure grid reliability and affordability.”
Mamdani stayed mostly mum on climate and energy policy during the campaign, as Heatmap’s Robinson Meyer wrote, though he did propose putting solar panels on school roofs and came out against the pipeline. While Mamdani seems unlikely to back the pipeline Hochul and President Donald Trump have championed, during a mayoral debate he expressed support for the governor’s plan to build a new nuclear plant upstate.
Late last week, Pine Gate Renewables became the largest clean energy developer yet to declare bankruptcy since Trump and Congress overhauled federal policy to quickly phase out tax credits for wind and solar projects. In its Chapter 11 filings, the North Carolina-based company blamed provisions in Trump’s One Big Beautiful Bill Act that put strict limits on the use of equipment from “foreign entities of concern,” such as China. “During the [Inflation Reduction Act] days, pretty much anyone was willing to lend capital against anyone building projects,” Pol Lezcano, director of energy and renewables at the real estate services and investment firm CBRE, told the Financial Times. “That results in developer pipelines that may or may not be realistic.”
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The Southwest Power Pool’s board of directors approved an $8.6 billion slate of 50 transmission projects across the grid system’s 14 states. The improvements are set to help the grid meet what it expects to be doubled demand in the next 10 years. The investments are meant to harden the “backbone” of the grid, which the operator said “is at capacity and forecasted load growth will only exacerbate the existing strain,” Utility Dive reported. The grid operator also warned that “simply adding new generation will not resolve the challenges.”
Oil giant Shell and the industrial behemoth Mitsubishi agreed to provide up to $17 million to a startup that plans to build a pilot plant capable of pulling both carbon dioxide and water from the atmosphere. The funding would cover the direct air capture startup Avnos’ Project Cedar. The project could remove 3,000 metric tons of carbon from the atmosphere every year, along with 6,000 tons of clean freshwater. “What you’re seeing in Shell and Mitsubishi investing here is the opportunity to grow with us, to sort of come on this commercialization journey with us, to ultimately get to a place where we’re offering highly cost competitive CO2 removal credits in the market,” Will Kain, CEO of Avnos, told E&E News.
The private capital helps make up for some of the federal funding the Trump administration is expected to cut as part of broad slashes to climate-tech investments. But as Heatmap’s Emily Pontecorvo reported last month from north of the border, Canada is developing into a hot zone of DAC development.
The future of remote sensing will belong to China. At least, that’s what the research suggests. This broad category involves the use of technologies such as lasers, imagery, and hyperspectral imagery, and is key to everything from autonomous driving to climate monitoring. At least 47% of studies in peer-reviewed publications on remote sensing now originate in China, while just 9% come from the United States, according to the New York University paper. That research clout is turning into an economic advantage. China now accounts for the majority of remote sensing patents filed worldwide. “This represents one of the most significant shifts in global technological leadership in recent history,” Debra Laefer, a professor in the NYU Tandon Civil and Urban Engineering program and the lead author, said in a statement.
The company is betting its unique vanadium-free electrolyte will make it cost-competitive with lithium-ion.
In a year marked by the rise and fall of battery companies in the U.S., one Bay Area startup thinks it can break through with a twist on a well-established technology: flow batteries. Unlike lithium-ion cells, flow batteries store liquid electrolytes in external tanks. While the system is bulkier and traditionally costlier than lithium-ion, it also offers significantly longer cycle life, the ability for long-duration energy storage, and a virtually impeccable safety profile.
Now this startup, Quino Energy, says it’s developed an electrolyte chemistry that will allow it to compete with lithium-ion on cost while retaining all the typical benefits of flow batteries. While flow batteries have already achieved relatively widespread adoption in the Chinese market, Quino is looking to India for its initial deployments. Today, the company announced that it’s raised $10 million from the Hyderabad-based sustainable energy company Atri Energy Transitions to demonstrate and scale its tech in the country.
“Obviously some Trump administration policies have weakened the business case for renewables and therefore also storage,” Eugene Beh, Quino’s founder and CEO, told me when I asked what it was like to fundraise in this environment. “But it’s actually outside the U.S., where the appetite still remains very strong.”
The deployment of battery energy storage in India lags far behind the pace of renewables adoption, presenting both a challenge and an opportunity for the sector. “India does have an opportunity to leapfrog into a more flexible, resilient, and sustainable power system,” Shreyas Shende, a senior research associate at Johns Hopkins’ Net Zero Industrial Policy Lab, told me. The government appears eager to make it happen, setting ambitious targets and offering ample incentives for tech-neutral battery storage deployments, as it looks to lean into novel technologies.
“Indian policymakers have been trying to double down on the R&D and innovation landscape because they’re trying to figure out, how do you reduce dependence on these lithium ion batteries?” Shende said. China dominates the global lithium-ion market, and also has a fractious geopolitical relationship with India, So much like the U.S., India is eager to reduce its dependence on Chinese imports. “Anything that helps you move away from that would only be welcome as long as there’s cost compatibility,” he added
Beh told me that India also presents a natural market for Quino’s expansion, in large part because the key raw material for its proprietary electrolyte chemistry — a clothing dye derived from coal tar — is primarily produced in China and India. But with tariffs and other trade barriers, China poses a much more challenging environment to work in or sell from these days, making the Indian market a simpler choice.
Quino’s dye-based electrolyte is designed to be significantly cheaper than the industry standard, which relies on the element vanadium dissolved in an acidic solution. In vanadium flow batteries, the electrolyte alone can account for roughly 70% of the product’s total cost, Beh said. “We’re using exactly the same hardware as what the vanadium flow battery manufacturers are doing,” he told me minus the most expensive part. “Instead, we use our organic electrolyte in place of vanadium, which will be about one quarter of the cost.”
Like many other companies these days, Beh views data centers as a key market for Quino’s tech — not just because that’s where the money’s at, but also due to one of flow batteries’ core advantages: their extremely long cycle lives. While lithium-ion energy storage systems can only complete from 3,000 to 5,000 cycles before losing 20% or more of their capacity, with flow batteries, the number of cycles doesn’t correlate with longevity at all. That’s because their liquid-based chemistry allows them to charge and discharge without physically stressing the electrodes.
That’s a key advantage for AI data centers, which tend to have spiky usage patterns determined by the time of day and events that trigger surges in web traffic. Many baseload power sources can’t ramp quickly enough to meet spikes in demand, and gas peaker plants are expensive. That makes batteries a great option — especially those that can respond to fluctuations by cycling multiple times per day without degrading their performance.
The company hasn’t announced any partnerships with data center operators to date — though hyperscalers are certainly investing in the Indian market. First up will be getting the company’s demonstration plants online in both California and India. Quino already operates a 100-kilowatt-hour pilot facility near Buffalo, New York, and was awarded a $10 million grant from the California Energy Commission and a $5 million grant from the Department of Energy this year to deploy a larger, 5-megawatt-hour battery at a regional health care center in Southern California. Beh expects that to be operational by the end of 2027.
But its plans in India are both more ambitious and nearer-term. In partnership with Atri, the company plans to build a 150- to 200-megawatt-hour electrolyte production facility, which Beh says should come online next year. With less government funding in the mix, there’s simply less bureaucracy to navigate, he explained. Further streamlining the process is the fact that Atri owns the site where the plant will be built. “Obviously if you have a motivated site owner who’s also an investor in you, then things will go a lot faster,” Beh told me.
The goal for this facility is to enable production of a battery that’s cost-competitive with vanadium flow batteries. “That ought to enable us to enter into a virtuous cycle, where we make something cheaper than vanadium, people doing vanadium will switch to us, that drives more demand, and the cost goes down further,” Beh told me. Then, once the company scales to roughly a gigawatt-hour of annual production, he expects it will be able to offer batteries with a capital cost roughly 30% lower than lithium-ion energy storage systems.
If it achieves that target, in theory at least, the Indian market will be ready. A recent analysis estimates that the country will need 61 gigawatts of energy storage capacity by 2030 to support its goal of 500 gigawatts of clean power, rising to 97 gigawatts by 2032. “If battery prices don’t fall, I think the focus will be towards pumped hydro,” Shende told me. That’s where the vast majority of India’s energy storage comes from today. “But in case they do fall, I think battery storage will lead the way.”
The hope is that by the time Quino is producing at scale overseas, demand and investor interest will be strong enough to support a large domestic manufacturing plant as well. “In the U.S., it feels like a lot of investment attention just turned to AI,” Beh told me, explaining that investors are taking a “wait and see” approach to energy infrastructure such as Quino. But he doesn’t see that lasting. “I think this mega-trend of how we generate and use electricity is just not going away.”