Vistra battery storage facility catches fire, triggers evacuation order

(Reuters) – One of the world’s largest battery storage facilities was engulfed in flames near San Francisco on Friday, and officials said the best solution was to let the plant continue to burn even as it released toxic smoke into the air.

A fire broke out at Vistra Corp’s 3,000-megawatt Moss Landing energy storage facility on Thursday, but the fire inside the building is expected to remain under control. The company’s shares fell about 6% in premarket trading.

This fire is a far cry from wildfires in the Los Angeles area.

The fire destroyed about 40% of the building, and the cause is still under investigation.

“There are no aggressive firefighting measures being taken and according to fire personnel the best option is to let the structure and battery burn,” Sheriff Monterey said.

Both Vistra and county officials said everyone at the scene was evacuated and no injuries were reported. The fire also prompted evacuations in nearby areas.

Vistra has not made any statement on the potential financial impact of the fire or the timeline for recovery efforts.

Lithium-ion batteries have solidified their position as the technology of choice for the electric vehicle market, and the market for these batteries is expected to grow at around 30% annually.

Vistra and other power companies were among the top performers on the S&P 500 last year as demand for clean and sustainable energy supplies grew among data centers, manufacturers and electric vehicle makers.

The impact of ongoing fires on the energy storage industry and supply chain remains unclear.

The official added that the nearby Tesla battery factory was not affected by the fire.

California has been on alert since the Los Angeles fire broke out about 10 days ago, killing at least 27 people.

(Reporting by Mrinalika Roy, Shubham Kalia, Kanjyik Ghosh and Gursimran Kaur in Bengaluru; Editing by Clarence Fernandez, Sharon Singleton and Leroy Leo)