Startup bets on aluminum to replace diesel as energy backup for data centers. Voya Energy raised US$35 million to develop generators that convert aluminum waste into backup power for data centers. By Michelle Ma August 31, 2026 | 12:27 AM Bloomberg - A California startup has raised US$35 million to develop a system that transforms aluminum waste into a backup power source for data centers. The goal: to create a cleaner alternative to burning diesel. Voya Energy's funding round was led by Energy Impact Partners LP and included participation from billionaire venture capitalist John Doerr, as well as Mantis VC, StepStone (STEP), Founders Fund, Overmatch Ventures, and Seven Stars, according to a company statement emailed Wednesday. Voya plans to use the funds to build generators that use aluminum-based fuel for testing at various facilities before the end of 2027. CEO Richard Wang said the system ultimately aims to compete with diesel generators, a common backup power source in data centers that helps keep equipment running during power outages. Unlike burning diesel, which causes air pollution, Voya's system uses an electrochemical reaction to release energy from aluminum, with no carbon emissions. The company is betting that data center developers, facing increasing scrutiny over their environmental impact, will be willing to pay for an alternative to diesel that Voya says is quieter, takes up less space, and is cleaner than burning fossil fuels. "The local air pollution these generators create is one of the reasons there is currently a strong backlash against large data centers," said Shayle Kann of Energy Impact Partners, who helped conceive the idea and co-founded Voya with Wang and his co-founders. Voya's generator design involves introducing recycled aluminum into a chemical solution, triggering an electrochemical reaction that releases energy. The company has its own prototype of the technology, which has not yet been tested at commercial scale. Nearly a dozen companies, including data centers, utilities, and industrial manufacturers, have partnered with Voya to conduct short-term pilot demonstrations, the company said, though Wang declined to reveal their names. Voya's aluminum-focused system is being developed at a time when prices for the lightweight metal have soared. Prices in the U.S. have surged over the past 18 months due to import tariffs imposed by the Trump administration, reduced stockpiles, and supply disruptions caused by conflicts in the Middle East, a major producing region. This has helped boost demand and prices for recycled aluminum. Voya plans to use the lowest-grade aluminum scrap, and the company has already identified regional suppliers, Kann of EIP said in an interview. Since the generators are designed for backup power and only run a few hundred hours a year, fuel costs matter less than hardware costs, he noted. Wang sees Voya's technology as a way to obtain electricity from metals that could be produced at low cost elsewhere and then transported to regions with energy shortages. "It is, in a way, the ultimate way to store and transport energy to places where it is not available," Wang said. Read more on Bloomberg.com

Voya Energy raises $35M to power data centers with aluminum fuel. 27 August 2026 Key Takeaways * Voya Energy secured $35M led by Energy Impact Partners to develop and deploy aluminum fuel generators. * The startup converts low-grade scrap aluminum into up to 2MW per container with zero on-site combustion or emissions. * It targets data centers and industry in 2027, offering compact, quiet power where grid connections are slow. The biggest power users in America can't get power fast enough. A new data center or factory can go from dirt to building in 6-12 months. But the electricity to run it is a different story. Getting approval for a new connection from a local utility often takes 3 to 5 years. And even if the utility says yes, permits for new transmission lines and power plants are likely requested. For this reason, Voya Energy raises $35M to commercialize generators that run on metal instead of diesel or gas. Turning scrap aluminum into electricity. The California-based startup announced a $35 million Series A on August 26, 2026. The round was led by Energy Impact Partners. Big-name investors also joined, including John Doerr, Founders Fund, Mantis VC, StepStone, Overmatch, Seven Stars and other VCs. Voya's system pairs a proprietary aluminum-based metal fuel with an electrochemical generator. The fuel is made from low-grade scrap aluminum pellets. Inside the generator, a custom electrolyte drives a reaction that turns the aluminum directly into electricity. There's no combustion, no turbine, and no emissions at the point of use. How it works. Think of it like a fuel cell, but instead of hydrogen, it uses solid aluminum. First, scrap aluminum is pelletized for safe storage and transport. The pellets are loaded into a fuel module. In the generator, the aluminum reacts in a metal-air cell with the proprietary electrolyte. That electrochemical reaction produces electricity quietly, without burning anything. Because there's no combustion, there are no local air emissions. The system is also being engineered for quiet operation to address noise concerns around large backup plants. The design is modular and containerized. One standard 20-foot container delivers up to 2 MW of power. A separate 10-foot module holds about 100 MWh of fuel. At scale, Voya says you can get roughly 100 MW of generation and 10 GWh of stored energy in one acre. That's about 4 times more compact than a diesel generator fleet and 100 times more compact than grid-scale batteries. What next for Voya Energy. 2027: Pilots. Voya plans initial deployments for data centers, industrial manufacturing, emergency response, and energy infrastructure. The immediate target is large users stuck waiting on grid connections. 2028: Scale-up. The new funding will pay for manufacturing capacity so the company can produce more units. Long-term: Metal fuels as a standard. The goal is to position aluminum fuel as a drop-in replacement for fossil-based on-site critical power. The founding team has deep battery experience. Richard Wang previously built Cuberg, a lithium-metal battery startup acquired by Northvolt. Co-founders Matt Horton and Steven Kaye come from Rivian, Proterra, and Apple's Special Projects Group. For manufacturers and industrial plants, it means energy independence. They can keep running during outages or grid constraints without relying on diesel. For climate goals, it's a way to decarbonize backup and critical power. Since the fuel comes from scrap aluminum, it also creates a use case for waste metal. Investors see metal fuels as a practical bridge. As John Doerr and Energy Impact Partners put it, this is about turning an abundant, globally traded material into electricity wherever it's needed, without combustion. I'm a crypto writer with 4+ years of experience passionate about turning big, technical ideas into content anyone can understand. From blockchain to stablecoins to everything in between, I enjoy helping readers stay informed in a space that never stops moving. Disclaimer VentureBurn is a media platform covering the latest in cryptocurrency, artificial intelligence, venture capital, and the startup ecosystem. Opinions expressed on VentureBurn are for informational purposes only and do not constitute investment advice. Before making any high-risk investments in digital assets or emerging technologies, readers should conduct their own due diligence. All transactions and financial decisions are made at your own risk, and any losses incurred are solely your responsibility. VentureBurn does not endorse or recommend the buying or selling of any digital assets and is not a licensed investment advisor. Please note that VentureBurn may participate in affiliate marketing programs.

Aluminium scrap gets a new life as Voya Energy unveils 2 MW power system. The image used in this article is generated with an AI tool and does not depict any real-time moment Voya Energy has unveiled an aluminium-based power system that converts low-grade aluminium scrap into electricity through a low-temperature electrochemical process, offering a potential new route for aluminium recycling, energy storage and off-grid power generation. The Hayward, California-based company is targeting data centres, industrial facilities and other large energy users facing constraints around grid access, permitting and fuel logistics. Scrap aluminium finds a new energy application Voya's system combines a proprietary aluminium-based fuel with a purpose-built electrochemical generator. Rather than burning the metal, the technology converts aluminium directly into electricity without combustion or air emissions at the point of use, according to the company. The fuel is produced from low-grade scrap aluminium, potentially creating an additional use for material that may otherwise have limited applications. Voya is positioning the technology as both a power-generation and energy-storage solution, allowing aluminium fuel to be stored and converted into electricity when required. At industrial scale, the system is designed to generate up to 2 MW from a standard 20-foot container. Voya says a larger-scale configuration could eventually provide around 100 MW of generation capacity and 10 GWh of stored energy per acre. The company estimates that its footprint could be about four times smaller than diesel generator fleets and 100 times smaller than grid-scale battery installations. The compact design is particularly aimed at power-intensive sites where securing additional grid capacity can be a bottleneck. To explore trade opportunities of secondary aluminium, visit AL Biz Data centres and industry emerge as target markets Voya is developing the system for data centres, industrial operators and other large electricity consumers that require reliable power but may face delays in grid connections or limitations related to conventional backup-fuel infrastructure. Nearly a dozen companies across data centres, industry, transportation, utilities and infrastructure are already working with Voya on pilot demonstrations, according to the company. Initial deployments are planned for 2027, followed by manufacturing scale-up in 2028. The approach could also give aluminium a role beyond its conventional applications in transport, construction, packaging and electrical systems, thereby positioning scrap metal as an energy carrier that can be converted into electricity on demand. "Meeting that demand requires new technologies that can deliver clean, firm power at speed and scale," mentioned John Doerr, Founder at Doerr Capital and Chair at Kleiner Perkins. He added that Voya is "turning abundant aluminium into a practical source of 24/7 power wherever it is needed." Voya raises USD 35 million for commercial deployment Alongside the technology launch, Voya Energy announced a USD 35 million Series A funding round led by Energy Impact Partners, with participation from John Doerr, Mantis VC, StepStone, Founders Fund, Overmatch, Seven Stars and other investors. The company plans to use the funding for further technology development, with its initial 2027 deployments and manufacturing expansion planned for 2028. The development places aluminium at an unusual intersection of recycling, energy storage and distributed power generation. If Voya's technology progresses from pilot deployments to commercial scale, low-grade aluminium scrap could become not only a recycling feedstock but also a source of dispatchable electricity. Unlock key insights from industry experts on aluminium's applications in end-use with its magazine - Sustainability & Recycling: Aluminium's Dual Commitment