Why two SpaceX alumni are betting on solar and batteries to power the AI craze

Two former SpaceX engineers are making waves in the energy sector with an innovative approach to power generation that has nothing to do with rockets. Their startup, Ambrosia Energy, aims to revolutionize the way power plants are built and operated on Earth, offering a faster and more cost-effective alternative to traditional natural gas facilities. Ambrosia Energy is not introducing a groundbreaking technology but is instead combining solar energy with lithium-ion batteries to ensure a continuous power supply at a competitive rate of $100 per megawatt-hour. "We believe a power plant should be operational within 12 months from contract signing to activation," said Sara Spangelo, co-founder and president of the company. "Our goal is to scale up to gigawatt levels." To reduce costs, Ambrosia has streamlined its battery systems. While typical grid-scale batteries operate on a two to four-hour cycle—which can be taxing on the infrastructure—Ambrosia's approach involves trickle charging during the day and discharging slowly at night. This method, along with various engineering improvements, has lowered the overall cost to just 1.5 times the price of the battery cells, making it more affordable than industry standards. If successful, Ambrosia could significantly disrupt the energy market, as constructing a new combined cycle gas turbine currently averages around $107 per megawatt-hour, often facing a backlog of five to seven years. "We are also more reliable than gas options," added Spangelo. Spangelo and her co-founder, CEO Ben Longmier, previously collaborated on the Starlink project at SpaceX after their startup, Swarm, was acquired. Their experience includes tenures at major tech firms like Google and Apple. Initially funded by their personal finances, the startup has recently garnered investment from DFJ Growth, although Spangelo opted not to disclose the amount. Drawing parallels between their experiences at SpaceX and Ambrosia, Spangelo remarked, "Many challenges—regulatory, technical, and market-related—are similar. By leveraging our past experiences, we hope to make a significant impact in this field." Ambrosia Energy has already begun constructing a power plant in West Texas, starting just one month after its official incorporation. According to Longmier, the project is nearly halfway finished, with operational sections already achieving 100% capacity. With plans for scalability, Ambrosia is exploring projects that could potentially harness up to 30 gigawatts of power, contingent on land availability. Initially, they will focus on smaller plants of 20 to 30 megawatts. While many components are currently off-the-shelf, the company aims to develop custom solutions and establish a factory in Austin, Texas, to expedite larger projects. Spangelo emphasized their ambition: "We aspire to deliver gigawatts by the end of the decade. We're aiming high!"