Heron Power Builds US Grid Solution Manufacturing Hub

Heron Power, a key player in advanced power electronics, is establishing its inaugural large-scale manufacturing operation in Morgan Hill, California. This strategic move signals a significant investment of over $100 million to transform a substantial 286,000-square-foot former distribution center into a cutting-edge production facility. The project is poised to generate more than 600 new jobs, bolstering the region's manufacturing and clean energy sectors.

At the heart of Heron Power's mission is the production of its innovative Heron Link system. This 5-megawatt medium voltage power conversion technology is specifically engineered to alleviate a critical bottleneck in the expansion of U.S. grid infrastructure: the persistent shortage of transformers. Once operating at full capacity, the Morgan Hill plant aims to churn out up to 10,000 Heron Links annually, directly addressing this pressing national need.

The ambitious expansion follows a robust $140 million Series B funding round earlier this year, which propelled the company's total capital raised to an impressive $183 million. This substantial financial backing, including support from investors like Crusoe, underscores the market's confidence in Heron Power's technology and its potential to reshape grid modernization efforts.

California's commitment to fostering clean energy innovation is evident in its support for this venture. Heron Power has secured a significant $26.4 million award through the California Competes (CalCOMPETES) program, administered by the Governor's Office of Business and Economic Development (CA GO-Biz). This substantial grant highlights the state's recognition of the facility's critical role in enhancing California's clean energy manufacturing capabilities and its contribution to the broader national energy transition.

The U.S. power electronics market is experiencing dynamic growth, driven by the accelerating deployment of renewable energy sources, the electrification of transportation, and the urgent need to upgrade aging grid infrastructure. Companies like Heron Power are strategically positioned to capitalize on this trend, offering solutions that enhance grid stability and facilitate the integration of distributed energy resources. The transformer market alone is projected for significant expansion, making Heron Power's focus particularly timely.

Site preparation activities are commencing immediately, with the facility slated to begin mass production by the end of 2027. This timeline positions Heron Power to make a tangible impact on the transformer supply chain in the coming years, contributing to the resilience and expansion of the nation's electrical grid. The successful execution of this manufacturing scale-up could serve as a blueprint for other cleantech manufacturers seeking to establish domestic production capabilities.