Seattle startup EnerG2, a University of Washington spinout that is developing a longer-lasting alternative to the battery, has scored $21 million in federal funding to build a manufacturing facility in Oregon.

The grant is part of a $2.4-billion U.S. stimulus package to accelerate the next generation of U.S. batteries and electric vehicles. EnerG2 will use its funding to build a facility in Albany, Oregon, for "production of high energy density nano-carbon for ultracapacitors," according to information put out today by the U.S. Energy Department.

EnerG2 has raised $11 million from investors, who include OVP Venture Partners, Firelake Capital and others. EnerG2 CEO Rick Luebbe did not immediately return a message seeking comment.

Here's how EnerG2 describes its technology on its website:

EnerG2 is currently focused on customizing electrode materials to enhance energy and power density in ultracapacitors, one of the essential engines of the new energy economy. Ultracapacitors, which are dependent on the performance of their materials, store and release more energy faster than conventional batteries. The size and make-up of the electrodes’ surface area helps ultracapacitors store and supply large bursts of energy; the materials also effectively enable limitless cycle life.

Ultracapacitors containing EnerG2 materials will be increasingly embraced by the automotive industry for hybrid electric vehicles, by electronics manufacturers for enhancing the life and usability of consumer goods, and by a variety of industrial customers to deliver an ever-increasing breadth of new ways to improve energy efficiency.

In the future, EnerG2 materials may be used to improve natural gas, methane and hydrogen storage as well as lithium-ion batteries.

My colleague John Cook explored EnerG2's technology in a report last November.

Update: EnerG2 confirmed the $21.3 million federal grant in a press release.

Here's an excerpt:

The funds will be used to help build the first facility in the world dedicated to the commercial-scale production of nano-engineered synthetic high-performance carbon electrode material. This material is the most important ingredient in ultracapacitor energy storage devices, which are used in electric and hybrid vehicles.

EnerG2 will partner with Oregon Freeze Dry, a current manufacturing partner, in the construction of the facility in Albany, Oregon. OFD will bring deep experience and expertise to the project and will help accelerate the benefits that the plant will bring to the automotive industry.

“We appreciate the Department of Energy’s confidence in us,” said Rick Luebbe, CEO of EnerG2, “and we are eager to help the next generation of clean transportation become a reality. We are confident that our materials will improve these vehicles’ efficiency, range and affordability.”

Update: Asked why EnerG2 chose Oregon, rather than Washington state, for the plant site, company spokesman Steven Gottlieb said, "That is where EnerG2's partner is located, with expertise and the site is ready made for a plant."

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