Healey-Driscoll Administration Announces $27.2 Million in State’s First-Ever Tax Incentives to Grow Climatetech Businesses & Jobs

Mass Leads Act funding will help 18 companies expand operations, create jobs, and drive economic growth across Massachusetts

CAMBRIDGE, Mass. - The Healey-Driscoll Administration today announced $27.2 million in tax incentives through the Mass Clean Energy Center's Climatetech Tax Incentives Program (CTIP). The funding will help 18 Massachusetts-based climatetech companies grow, create jobs, and accelerate the development and deployment of technologies that strengthen the state's position as a global leader in clean energy solutions that lower costs, reduce pollution, and protect public health.

"Climatetech is creating new opportunities for workers and communities across Massachusetts," said Governor Maura Healey. "These investments will help companies expand their facilities, hire more workers and grow right here in our state. That means more good jobs, more private investment and more economic growth in communities across Massachusetts."

"Massachusetts has the talent, ideas and innovation to lead the next generation of climatetech," said Lieutenant Governor Kim Driscoll. "We're making sure companies have the support they need to take their ideas to the next level and stay here as they grow. That strengthens our economy and creates new opportunities for people and communities across Massachusetts."

The Climatetech Tax Incentives Program was launched under the Mass Leads Act and builds on MassCEC's Climatetech Economic Development Strategy and Implementation Plan, a 10-year roadmap to ensure that Massachusetts remains a global climatetech leader. The plan calls for strategic investments in testing and demonstration assets, physical and programmatic support for startups and researchers, and stronger coordination across the ecosystem.

"Massachusetts companies are developing the technologies that will shape the future of energy - from long-duration storage to geothermal and hydrogen," said Energy and Environmental Affairs Secretary Rebecca Tepper. "These incentives will help bring in those technologies to help scale and strengthen the state's energy system, lower costs, and speed up clean energy solutions."

"These companies are doing more than growing our economy. They're tackling some of our toughest climate and energy challenges and showing why Massachusetts is the best place for this type of innovation," said Economic Development Secretary Eric Paley. "These incentives help companies leading the next generation of climatetech to continue to tap into our talent ecosystem to grow and build here."

"Massachusetts is producing the solutions to the biggest challenges in climate, energy and affordability. These awardees are all proof of it," said Ben Downing, Mass Clean Energy Center CEO. "This funding helps them invest in our communities, creating the jobs and technologies that will drive our economy forward while advancing groundbreaking climate solutions."

The inaugural awards will support 18 companies working across a range of technologies, including energy storage, advanced manufacturing, geothermal energy, clean hydrogen, fusion energy, sustainable aviation fuel, building technologies, and clean transportation. These investments are expected to leverage additional private capital and support the expansion of facilities, research and development, and manufacturing capacity in Massachusetts.

Recipients are located in communities across Massachusetts, from New Bedford and Sunderland to Greater Boston and Devens, underscoring the statewide reach of the state's growing climatetech sector.

The recipients are:

• AeroShield Materials (Waltham, MA): $140,000 - Manufactures aerogel insulation to improve window energy efficiency and reduce HVAC costs.
• BT2 Energy (Roxbury, MA): $100,000 - Turnkey developer for EV charging, energy efficiency, and electrification.
• Daqus Energy (Woburn, MA): $100,000 - Develops high-energy, low-cost battery cathode materials for next-generation energy storage.
• Eden Geopower (Somerville, MA): $100,000 - Uses electric pulse drilling technology to make geothermal energy development faster and more affordable.
• Florrent (Sunderland, MA): $120,000 - Produces high-density supercapacitors from biomass waste to support clean energy storage.
• Luminous Robotics (Boston, MA): $400,000 - Designs autonomous robotic systems that accelerate solar farm construction and deployment.
• Mantel Capture (Cambridge, MA): $100,000 - Develops carbon capture technology for high-temperature industrial boilers, kilns, and furnaces.
• Orpheus Ocean (New Bedford, MA): $100,000 - Builds autonomous underwater vehicles that improve seafloor monitoring and data collection.
• Pascal Technologies (Cambridge, MA): $100,000 - Develops solid refrigerant cooling systems that reduce cooling costs and improve energy efficiency.
• Reframe Systems (Andover, MA): $800,000 - Operates technology-enabled microfactories that produce homes while reducing waste and shortening construction timelines.
• REON Technology (Chelmsford, MA): $100,000 - Optimizes the management and performance of battery and solar energy systems to extend their usable life.
• Vertical Semiconductor (Somerville, MA): $120,000 - Engineers vertical gallium nitride (GaN) transistors that enable high-efficiency power conversion for AI data centers.
• Commonwealth Fusion Systems (Devens, MA): $7,500,000 - Develops high-temperature superconducting magnets that make lower-cost tokamak fusion systems possible.
• Electric Hydrogen (Devens, MA): $7,500,000 - Manufactures electrolyzer plants designed to enable low-cost clean hydrogen production at scale.
• Electrified Thermal Solutions (Charlestown, MA): $954,000 - Delivers zero-carbon industrial heat using electrically conductive thermal storage "firebricks."
• Form Energy (Somerville, MA): $5,677,258 - Produces grid-scale iron-air batteries capable of providing up to 100 hours of cost-effective energy storage.
• Fourth Power (Bedford, MA): $1,546,830 - Creates ultra-high-temperature graphite thermal batteries that convert surplus electricity into long-duration, grid-scale energy storage.
• Lydian Labs (Charlestown, MA): $1,784,570 - Converts carbon dioxide and hydrogen into sustainable aviation fuel through a process powered by renewable electricity.

For more information on the Climatetech Tax Incentives Program, visit masscec.com/program/climatetech-tax-incentives-program.

Statements of Support

"Energy costs are hitting families hard. That's why investing in industries of the future isn't optional, it's essential," said State Senator Barry Finegold, Senate Chair of the Joint Committee on Economic Development & Emerging Technologies (D-Andover). "By making a significant commitment to Climatech companies across the Commonwealth, the Mass Leads Act continues to strengthen our state's push to diversify energy sources and address rising energy costs."

"These $27.2 million in climatetech tax incentives will help 18 companies bring cutting-edge technologies to the marketplace, all while strengthening our economy and advancing the Commonwealth's clean energy goals," said State Representative Carole Fiola, House Chair of the Joint Committee on Economic Development & Emerging Technologies (D-Fall River). "I'm proud to see the investments we made through the 2024 Mass Leads Act deliver meaningful support to companies across Massachusetts, from startups to some of our more promising large-scale clean energy innovators. By continuing to invest strategically in climatetech, we can help keep Massachusetts as a leader in a sector that is critical to our economic competitiveness and our clean energy future."

About the Mass Clean Energy Center

The Mass Clean Energy Center is a state economic development agency dedicated to accelerating the growth of the clean energy and climatetech sector across the Commonwealth to spur job creation, deliver statewide environmental benefits, increase affordability, and secure long-term economic opportunities for the people of Massachusetts. Since 2010, MassCEC has awarded $990 million in programs and investments and attracted $3 billion in private and public funds.

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