Workshop DD Energy Storage Roadmap for Ohio and an Update on the - PDF document

Workshop DD Energy Storage Roadmap for Ohio and an Update on the Cleveland Microgrid Wednesday, February 20, 2019 11:15 a.m. to 12:30 p.m.

Biographical Information Andrew R. Thomas, Executive-in Residence, Energy Policy Center Cleveland State University, Maxine Goodman Levin College of Urban Affairs 2121 Euclid Avenue, UR 132, Cleveland, OH 44125 216-687-9304 a.r.thomas99@csuohio.edu Andrew Thomas is an Executive-in-Residence in the Levin College of Urban Affairs of Cleveland State University, where he leads research for the Energy Policy Center. His research focuses on electricity regulation and markets, distributed generation, transportation and oil and gas production, regulation and markets. He teaches energy law and policy in the Cleveland Marshall School of Law and in the Levin College. He also teaches oil and gas contract short courses at various venues around the world. Prior to coming to CSU in 2008, Mr. Thomas was an energy lawyer in private practice in New Orleans, Louisiana, and a geophysicist with Shell Oil Company. Mr. Thomas received his J.D. from Loyola University, where he was editor of the law review. He is currently an Ohio Oil and Gas Commissioner, and is of-counsel to the Cleveland, Ohio- based law firm of Meyers, Roman, Friedberg and Lewis. Jay Foran, Senior VP, Industry and Innovation, Team NEO 1111 Superior Ave. Ste. 1786, Cleveland, OH 44114-2500 jforan@teamneo.org Jay helps businesses discover exciting growth opportunities in the Cleveland Plus region. He works with corporate clients and site consultants and helps them navigate through the regional economic development framework, connecting them with state and local resources and emerging technologies. Prior to joining Team NEO, Jay was Vice President, Business Development for The Lake West Group LLC, a management consulting firm. Jay also served in a variety of key leadership positions with Procter & Gamble during a lengthy and distinguished career where he was responsible for a variety of business building initiatives that have been emulated throughout the consumer products industry. Mark Henning, Graduate Research Assistant Energy Policy Center in the Maxine Goodman Levin College of Urban Affairs Cleveland State University 517.648.5428 m.d.henning@vikes.csuohio.edu Mark Henning is a graduate research assistant for the Energy Policy Center in the Maxine Goodman Levin College of Urban Affairs at Cleveland State University. He recently completed his M.S. in Mathematics with Specialization in Applied Statistics at CSU and is currently in the last semester of the Master of Public Administration program at Levin College where his focus area has been public financial management.

Roadmap for a Northeast Ohio Energy Storage Cluster MEC Ohio Energy Management Conference February 2019 Jay Foran Sr. VP, Industry and Innovation TeamNEO Andrew R. Thomas and Mark Henning Energy Policy Center Cleveland State University 1

About TeamNEO • Business Development organization focused on creating jobs for Northeast Ohio. • JobsOhio affiliate for NE Ohio • 18 Counties • Created in 2003 from: • Greater Akron Chamber • Stark Economic Development Bd • Youngstown/Warren Chamber • Greater Cleveland Partnership • FirstEnergy Corporation 2

TeamNEO Innovation Clusters Why Clusters? • Geographic concentration of interconnected businesses and institutions in a particular sector • Provides strategic framework for growth • Targets entire value chain from research to final production Innovation Mission: • Nurturing innovation clusters that will generate continued growth and competitiveness TeamNEO Innovation Clusters • Additive Manufacturing • Energy Storage • Smart Manufacturing (Industrial Internet of Things) (IIoT) 3

TeamNEO Energy Storage Cluster Network of industry academic, government and non‐ government leaders in energy storage development Energy Cluster Roadmaps • 2012 Roadmap • 2019 Roadmap Core Stakeholders include: • Case Western Reserve University • NASA Glenn Research Center • FirstEnergy 4

Roadmap Outline • Define Market Segments • Identify Trends in Energy Storage • Identify Sector Assets in NE Ohio • Commercial Assets • Structural Assets • Identify NEO Competitive Position • Identify Market Opportunities • Develop Roadmap 5

Number of Commercial Customers with Demand Charges that May Exceed $15/kW/month -- 2018 Source: NREL 6

Application‐based Market Framework Grid Storage Transportation Consumer Electronics Energy Storage Technologies Thermal Electrochemical Mechanical Hydrogen Electrical 7

Trends in Energy Storage 8

Trends in Energy Storage ‐ Grid Since 2012 Roadmap U.S. Grid‐Scale Energy Capacity by Value Stream (2012 and 2017) 600 500 400 MWh 300 200 100 0 frequency arbitrage load management backup power t&d deferral storing excess regulation wind/solar generation 2012 2017 Source: Form EIA-860, Annual Electric Generator Report 9

Trends in Energy Storage – Transportation Since 2012 Roadmap Regular Gasoline $4.50 250,000 Dollars per Gallon $4.00 200,000 $3.50 $3.00 150,000 $2.50 $2.00 100,000 $1.50 $1.00 50,000 U.S. Annual Plug‐in EV Sales $0.50 $0.00 0 2011 2012 2013 2014 2015 2016 2017 Source: U.S. DOE 10

NE Ohio Energy Storage Commercial Assets Core Industry Employment ‐ 2018 Employment for Core Energy Storage in NE Ohio 500 450 400 350 Employment 300 250 200 150 100 50 0 thermal electrical mechanical hydrogen electrochemical Technology Type 11

NE Ohio Energy Storage Commercial Assets Balance of Plant Employment ‐‐ 2018 Employment for Combined Energy Storage Balance of Plant & Power Conversion Systems in NE Ohio 3000 2500 2000 Employment 1500 1000 500 0 consumer electronics transportation grid Application 12

NE Ohio Structural Assets in Energy Storage Universities and Research Labs Scientific Utilities and Infrastructure Grid Operator and Startup Assistance Commercial Assets Manufacturing Expertise and Innovation Production Funding Process Improvement 13

NE Ohio Competitive Position Location Quotients for Engineering Occupations Area Name Occupation LQ Area Name Occupation LQ Cleveland, OH Chemical Engineers 1.64 Detroit, MI Electrical Engineers 2.69 Akron, OH Chemical Engineers 1.31 Akron, OH Electrical Engineers 1.95 San Francisco, CA Chemical Engineers 0.96 Grand Rapids, MI Electrical Engineers 1.30 Detroit, MI Chemical Engineers 0.62 San Francisco, CA Electrical Engineers 1.21 Grand Rapids, MI Chemical Engineers 0.62 Charlotte, NC Electrical Engineers 0.93 Charlotte, NC Chemical Engineers 0.52 Cleveland, OH Electrical Engineers 0.93 Reno, NV Chemical Engineers N/A Reno, NV Electrical Engineers 0.55 Area Name Occupation LQ Area Name Occupation LQ Akron, OH Materials Engineers 2.36 Detroit, MI Mechanical Engineers 7.42 Cleveland, OH Materials Engineers 1.48 Grand Rapids, MI Mechanical Engineers 3.32 Detroit, MI Materials Engineers 1.32 Akron, OH Mechanical Engineers 1.29 Grand Rapids, MI Materials Engineers 1.18 Cleveland, OH Mechanical Engineers 1.16 San Francisco, CA Materials Scientist 1.05 Charlotte, NC Mechanical Engineers 0.99 Charlotte, NC Materials Engineers 0.53 Reno, NV Mechanical Engineers 0.70 Reno, NV Materials Engineers N/A San Francisco, CA Mechanical Engineers 0.45 Source: Bureau of Labor Statistics 14

NE Ohio Competitive Position Cost of Living by Metro Area Price of Goods, Services, and Area Name Housing Compared to National Average Akron, OH 10% lower Cleveland, OH 9.8% lower Charlotte, NC 6.5% lower Grand Rapids, MI 1 6.5% lower Detroit, MI 4.1% lower Reno, NV 1.3% lower San Francisco, CA 24.7% higher Source: Bureau of Economic Analysis 15

Potentially Disruptive Energy Storage Technologies Represented in Northeast Ohio Energy Storage CAGR Forecast Market Size Forecast Northeast Ohio Assets Technology (through 2026) (in billions by 2026) University of Akron; Akron Solid State Batteries 63.1% 1.5 PolyEnergy Graphene 36.9% 0.6 NeoGraf Solutions Supercapacitors 21.0% 5.0 Gotion; PoymerPlus LLC Silicon-based Batteries 29.4% 0.9 NASA; Case Western Case Western Reserve University; Fuel Cell (hydrogen) 19.6 14.3 Kent State University; Yanhai Power LLC Flow Battery 30.5% 1.0 Case Western; Coventya, Inc. Flexible, Printed, & Thin 34.8% 1.6 Blue Spark Film Batteries Lithium-ion Batteries 16.3% 99.3 --- 16

Conclusions • The assets exist in NE Ohio to accelerate cluster development • Universities, NASA provide cutting edge technology research and development at the forefront of the industry • Around 70 businesses in various stages of development are established in Northeast Ohio in the energy storage sector • Commercial strength is in balance of system, storage system applications. • Incubators, shared labs, and seed/pre-seed capital programming is available to support commercial companies. • A number of companies in NE Ohio are positioned to make adjustments to enter into emerging markets, such as wearable electronics. • NE Ohio enjoys advantages in work force skills and cost of living compared to many competing regions. • NE Ohio is not likely to be competitive in battery manufacturing. Its cluster focus should be on components, material development, balance of plant and applications. 17