Making the Case for Alternatives to Lithium-ion Batteries Hugh - - PowerPoint PPT Presentation

Hugh McDermott Senior Vice President Business Development September 2018

Go With the Flow Making the Case for Alternatives to Lithium-ion Batteries

Compa Company ny Ov Over erview view

Company Technology Product Manufacturing

 Founded in 2011  HQ in Wilsonville, OR  Key Investors: ‒BASF ‒Presidio Partners, ‒Pangaea ‒Cycle Capital  Worldwide sales through multiple sales channels  Iron flow battery technology  ARPA-E and US DOE heritage  IP protected (30+ patent filings)  5+ years of research, product development and field testing  100,000 ft2 facility in Wilsonville, OR  Scaling to 1 GWh/year  Efficient & scalable manufacturing  Low automation capital costs allows for a flexible, distributed manufacturing model  25 year design life  Second generation technology – no maintenance module design.  Unlimited cycling duty- does not degrade with use  Safest, cleanest battery available on the market

2 ESS Tech, Inc.

Energy CenterTM Platform

Highlights

 Custom engineered design to meet specific power and storage requirements  250kW modular power train scalable design  Operating Range: Up to 125F ambient with no AC required  Low aux load requirements: ~ 2%  Energy Density: 70 MWh / acre  Capex: mid $200s / kWh (2020 delivery)  LCOS: < $0.05/kWh

3

Scalable Design from 5MW to 1GW

ESS Tech, Inc.

En Ener ergy y War areh ehou

• use

seTM

TM Pla

Platf tfor

• rm

Energy Warehouse TM

 Ship anywhere, fully containerized battery with 400kWh storage  50 and 100 kW power configurations provide up to 8 hrs discharge (AC or DC)  Turnkey design includes inverter, power electronics, and BMS  Modbus interface integrates with 3rd party controls  No hazmat, toxicity or flammability issues  Easy to operate and maintain

Stackable Modular Design

4

Easy to permit, install and commission

ESS Tech, Inc.

Product Fit

Energy Warehouse Energy Warehouse Energy Center (> 5MW) Energy Warehouse Energy Center

Advantages

 Modularity for scale  Stackable for density  Flexibility – add or redeploy units as needs change  Easy to permit  No hidden liabilities  Flexible cycling capability to meet evolving market conditions  Flexibility to support distributed

• r centralized

storage siting  Multi-cycling capability for revenue stacking  Modularity for scale  Flexibility – add or redeploy units as needs change  No limits multi-gen flexibility  40+ year asset life (with mid-life refurbish)  Scalable from 5MW to GW scale  Up to 50C

• peration

 No AC or cooling water required  Ultra low aux loads  No fire risk  No toxicity

Off-Grid / Microgrid Utility Scale / Grid Support Renewables Integration

C&I / Behind-the- Meter

Key Applications

ESS Tech, Inc. Confidential 5 ESS Tech, Inc. 5

Low-Cost Abundant Electrolyte Materials

Key Adva ey Advanta ntage ge: : Elec Electr trol

• lyte

yte

Features

 pH similar to soda and wine, no toxic materials  Inherently safe, no fire risk  Environmentally friendly, 100% recyclable  Enables standard, off-the-shelf BOP components for system – lowers costs, easy to support and maintain  Sealed, no maintenance electrolyte system

• design. No additives, no augmentation for life
• f equipment.

Iron Salt

6 ESS Tech, Inc.

Key ey Adva Advanta ntage ge: : Unlimit Unlimited ed Cy Cycli ling ng

50% 60% 70% 80% 90% 100% 110% 2,000 4,000 6,000 8,000 10,000

Capacity (%) Cycles

ESS IFB Cycle Performance

Deep Cycling (100% <--> 25%) ESS Data Li-Ion Cells

50% 60% 70% 80% 90% 100% 110% 2,000 4,000 6,000 8,000 10,000

Capacity (%) Cycles

ESS IFB Cycle Performance

Shallow Cycling (100% <--> 75%)

ESS Data Li-Ion Cells

7

Multi-cycle test results conducted under ARPA-E program

No degradation in power output regardless of duty cycle or depth of discharge

40+ years simulated operation of electrolyte and power module

ESS Tech, Inc.

Key Advantage: Performance

Performance

• Fast response (<1ms
• n DC bus)
• Constant Power

Output to 80% DOD

• Full discharge output

to 100% DOD

ESS Tech, Inc.

LTO NMC Zn Flow VRB NaS Pb-Acid More Safe

3 2 2 W 3 2 1

COR

3 2 W 2

cor

3 2

cor

2

cor

Less Safe

Safety

3 2 2 W

ESS

Key Advantage: Safety Profile

9

No hidden liabilities No hidden soft costs for compliance or incidence response No fire risk, no electrolyte safety risk to personnel

ESS Tech, Inc.

$0.23 $0.22 $0.22 $0.18 $0.12 $0.12 $0.10 $0.10 $0.09 $0.05

$0.00 $0.05 $0.10 $0.15 $0.20 $0.25 Aquion Primus Redflow EOS ViZn LTO NMC (Tesla) LFP (BYD) VRB ESS

Levelized Cost Analysis - 2020 CapEx Cost

10

Competitive Comparison

LCOS calculated for renewable integration:

 200MWh energy storage facility  6 hours of usable storage, 1 cycle per day  25 years of operation

Li-ion Systems

$0.037 $0.03  2 cycles / day @ 4 hrs  2 cycles /day @ 5 hrs

Increased Cycles and Longer Duration Increases Value

LCOS ($/kWh)

ESS Tech, Inc.

Sp Spotli

• tligh

ght t Insta Install llations tions

UCSD Microgrid

400 kWh Microgrid Operational 2017

DNV-GL Windfarm

400 kWh Renewable Integration Operational 2017

US Army Corps Diesel Microgrid Optimization

225 kWh Off-grid/Renewables Operational 2016

Stone Edge Microgrid Zero Net Energy System

60 kWh Microgrid/Renewables Operational 2015

ESS Tech, Inc.

Summary

2/5/2018 ESS Tech, Inc. Confidential 12

Thank you

𝑀𝐷𝑃𝑇 = σ 𝐷𝑏𝑞𝐹𝑦 + σ 𝑃&𝑁 σ 𝑙𝑋ℎ

Purchases for the System  Equipment (i.e. batteries)  Site preparation (foundation)  Transportation (new material and old material)  End of life disposal Operation & Maintenance  Labor to service system  Services used (i.e. Internet)  Materials used Useable Energy

• Accounts for capacity fade
• Usable State of Charge
• Downtime for required

maintenance

• Round trip efficiency

ESS Tech, Inc. 13