Following the passage of OBBB, the onsite power company shows increased engagement and investment.

Mainspring Energy, a company specialising in low-emission, fuel-flexible power generation technologies, is making strides in the US market. Shannon Miller, the CEO of Mainspring Energy, is leading the charge, leveraging tax incentives such as those provided by the Inflation Reduction Act (IRA) to expand the deployment of linear generators.

One of Mainspring's key customer segments is data center developers, who have been crucial in the company's growth over the past few years. A new development sees a municipal utility building a 36 megawatt generator project just outside a town where a new data center is planned. The generator, powered by propane in the near term but with plans to transition to hydrogen, will serve as a power source to replace diesel generators, offering a lower-emissions alternative that can run on various fuels.

The municipal utility's concern is to have a power source close to the town to avoid transmission and distribution issues. Mainspring's generators, which can switch between fuel types using software alone, present a potential solution for such concerns. The municipal utility expects the Mainspring generators to be running between 10% and 30% of the time to support the local grid as the new data center comes online.

The One Big Beautiful Bill (OBBB) has been instrumental in this development. The bill extends the tech-neutral investment tax credit for linear generators, allowing projects to qualify for the credit if they start construction by the end of 2033. This extension, according to Miller, has "changed things overnight" for Mainspring.

The extension of the ITC under OBBB has also led to a surge in interest from consumer-owned utilities, who are struggling with transmission constraints. Historically, these utilities, including municipal utilities and electric cooperatives, haven't had the financial capacity or scale to develop their own generation projects. However, the extension of the ITC under OBBB has provided a longer runway for linear generator projects than initially under the IRA.

Moreover, the hydrogen industry's coordinated effort paid off in extending the 45V hydrogen credit, which could impact Mainspring's growth. The credit has been extended to the end of 2027.

Looking ahead, Mainspring is focusing on building a domestic supply chain to avoid tariff uncertainty. The company is largely discussing utility projects that wouldn't start building until 2027 or 2028. In the AI load growth era, consumer-owned utilities are finding themselves in a somewhat vulnerable position. Mainspring's linear generators, with their ability to ramp up and down quickly and switch between fuel types, could provide a valuable solution for these utilities.

In the face of growing demand for clean and reliable energy sources, Mainspring Energy is poised to play a significant role in powering the US's future.