USA, California: Heron Power plans to invest $100 M in a new California manufacturing facility for advanced transformer technology serving the US power grid, data centres and large-scale energy projects.
The company will convert a former 25,670 m2 (286,000 sq ft) distribution warehouse south of San Jose into a production facility for Heron Link, a 5 MW medium-voltage power conversion system. Mass production is expected to begin in late 2027.
Heron is developing software-controlled, semiconductor-based transformer technology as an alternative to conventional transformers relying on steel cores and insulating oil. CEO Drew Baglino, a former Tesla executive, said the technology is intended for electricity networks undergoing rapid changes in generation and demand.
The investment comes amid continuing concerns over transformer availability in the US. Baglino said lead times for conventional transformers can reach up to four years, while many critical grid components continue to be imported.
Demand is being driven by the expansion of data centres, electric vehicles, heat pumps, renewable generation, battery infrastructure and transmission networks, placing additional pressure on existing grid capacity and equipment supply chains.
Heron raised $140 M in Series B funding in February, with investors including Andreessen Horowitz and Breakthrough Energy Ventures. The company has not disclosed customers for Heron Link but said it has received interest from electric utilities and data centre developers.
Source: Reuters
