Eos Energy Enterprises, Inc. · NASDAQ:EOSE
Eos Energy Enterprises — B. Riley Principal Merger Corp. II — SPAC Merger (October 2020)
55 slides from Eos Energy Enterprises's SPAC merger presentation, Oct 20, 2020
Slide 1: Eos Energy Storage Analyst Day Presentation October 2020
Eos Energy Storage Analyst Day Presentation October 2020
Slide 2: Disclaimer
Disclaimer 2 This presentation does not purport to contain all of the information that may be required to evaluate a possible voting or investment decision with respect to B. Riley Principal Merger Corp. II (“BRPM II”). The recipient agrees and acknowledges that this presentation is not intended to
Slide 3: Participating Management
Participating Management Dan Shribman CEO of B. Riley Principal Merger Corp. II and Chief Investment Officer of B. Riley Financial Russ Stidolph Chairman of the Board Joe Mastrangelo Chief Executive Officer Francis Richey Vice President, Research & Development Daniel Friberg Senior Vice President, T
Slide 4: Agenda
A g enda 4 + Welcome, Transaction Overview Dan Shribman + Addressable Market Russ Stidolph + Company Overview Joe Mastrangelo + Technology Evolution Francis Richey + Product Development Daniel Friberg + Supply Chain Readiness Nathan McCormick + Pipeline and Growth Strategy Joe Mastrangelo + Financia
Slide 5: Transaction Overview
Transaction Overview Dan Shribman CEO of B. Riley Principal Merger Corp. II and Chief Investment Officer of B. Riley Financial
Slide 6: Transaction Overview
Transaction Overview 1. B. Riley Principal Merger Corp. II (NYSE:BMRG, “BRPM II”) has entered into a definitive agreement to combine with Eos Energy Storage LLC (“Eos”) 2. The combined company is expected to be capitalized with $202m of new equity which will be used to support the build - out of inc
Slide 7: Investment Rationale
Investment Rationale Energy storage provides flexibility and can enhance the reliability and resiliency of energy grid operations providing customer solutions. As renewable energy generation continues to grow, storage will play a critical role in balancing the variable output of wind and solar farms
Slide 8: Addressable Market
Addressable Market Russ Stidolph Chairman
Slide 9: The World is Electrifying – Global Energy Storage Market Estimated to Attract $660 Billion
The World is Electrifying – Global Energy Storage Market Estimated to Attract $660 Billion of Investment by 2040 9 27% Additional global electricity demand by 2030 (1) ~11% of global population without electricity Source: BNEF, U.S EIA, World Bank, United Nations. (1) Represents incremental global e
Slide 10: US Energy Ecosystem at Inflection Point
US Energy Ecosystem at Inflection Point 10 Energy storage to provide essential infrastructure for renewable energy proliferation and grid congestion management $200bn+ total storage spend by 2030; Every 1% market share in 2030 = $850m in revenue Source: BNEF; International Renewable Energy Agency; S
Slide 11: Regulatory Policy Acting as a Significant Tailwind for Energy Storage Deployment
3,000 3,000 2 , 00 0 1 , 82 5 1 , 00 0 New York A r i z o n a New Jersey C a li f o r n ia Massachusetts Regulatory Policy Acting as a Significant Tailwind for Energy Storage Deployment 11 Cumulative Energy Storage Deployments Sources: HIS, BNEF. CA ▪ 13 GWH of Battery Storage by 2030 in California.
Slide 12: Renewable Energy Penetration to Drive Energy Storage Growth
Renewable Energy Penetration to Drive Energy Storage Growth Renewable Growth • Electricity generation from renewable energy sources rises from 17% in 2019 to 20% in 2020 and to 22% in 2021. • Since 2015, US solar energy production has increased 4x+ Why Now? Renewable energy contributed 76% of total
Slide 13: Company Overview
Company Overview Joe Mastrangelo Chief Executive Officer
Slide 14: Eos Energy Storage System
Eos Energy Storage System Eos is powering the clean energy renaissance with a positively ingenious energy storage solution • Global energy storage market estimated to grow 20% CAGR over 20 years • Eos technology is optimized for the 4+ hour storage market • Zinc electrolyte - based chemistry; No rar
Slide 15: Leveraging Scalable, Smart, Safe Technology for a Best-in-Class Commercial Battery Solution
Leveraging Scalable, Smart, Safe Technology for a Best - in - Class Commercial Battery Solution Eos Value Proposition Simple • Five core commodities in a simple configuration - Zinc - Bromine - Titanium - Graphite Felt - Plastic Scalable • 7 - Easy steps of manufacturing • 12 months or less set up t
Slide 16: Technology Evolution
We are committed to continuous improvement and innovation. Technology Evolution Significant milestones achieved since inception Gen. 1.0 commercial prototype Gen. 2.0 beta system released Operating Gen. 2.0 projects Gen. 2.3 program launch Gen. 3.0 program launch Gen 1.0 performance Power .5 kW Ener
Slide 17: Simple, Efficient, Modular & Scalable Manufacturing
Simple, Efficient, Modular & Scalable Manufacturing Company plans to have 7+ GWh of production capacity by 2024 • <$30m Capex required to build one GWh facility • 180 days to roll out a new production line Welded C o llec t ors Heat & Treat Titanium Glue G raphi t e Felt Welding In f r a - red Frame
Slide 18: Lower Customer Risk, Increased ROI, Added Safety
Lower Customer Risk, Increased ROI, Added Safety Improved performance resulting in ~30% reduction in levelized cost of storage 18 Depth of Discharge $52/kWh CapEx Savings Eos: Designed for 100% utilization, no additional upsizing required Li - ion: 80% DoD requires 20% more batteries to deliver the
Slide 19: Robust Long-Term Value Proposition to Customer
Drivers • Lower initial capital expenditure • Lower lifetime operating cost • Improved charging costs • Minimal Auxiliary load losses Robust Long - Term Value Proposition to Customer 19 Eos Li - Ion Flow Competing Technologies Lower lifetime cost & lower risk Customer Value Proposition E os Lithium
Slide 20: Eos Technology Uses & Applications
Eos Technology Uses & Applications Storage solution optimized for the critical 4+ hour global storage market; ideal for renewable plus storage and grid congestion applications 20 Market Segments Application Value Proposition Market Size Pipeline Clients Renewables ▪ Co - location of battery storage
Slide 21: Technology Evolution
Technology Evolution Francis Richey Vice President, Research & Development
Slide 22: Key Characteristics of a Battery Storage System
What are the Key Characteristics of a Battery Storage System? Self Discharge Occurs when the stored charge (or energy) of the battery is reduced through internal chemical reactions, or without being discharged to perform work for the grid or a customer. State of Charge Expressed as a percentage, rep
Slide 23: Eos Chemistry Overview
Eos Chemistry Overview x Reversible zinc plating and halide redox with large aqueous electrolyte pool in a sealed bipolar battery x Zn and Zn2+ accumulate at the anode Ti current collector x Ha and Ha - accumulate at the cathode current collector Top of Charge Chemical Inspiration: Zinc Plating Bath
Slide 24: Superior Technology Delivers Competitive Advantages Over Li-ion
Superior Technology Delivers Competitive Advantages Over Li - ion Safer, environmentally friendly and cheaper energy storage solution VS SCALABLE ✓ Low cost aqueous zinc ✓ Unrestricted depth of discharge ✓ Flexible modular configurations, AC or DC coupled, outdoor or indoor ✓ Plug & play design with
Slide 25: Battery Testing Facility in Edison, NJ
Battery Testing Facility in Edison, NJ Eos Edison HQ Battery Test Lab Capabilities • 60 programmable battery module channels • 1,200 programmable lab cell channels • 3 high temperature chambers • 1 programmable environmental chamber • 4 Energy Block System - ready Test Bays • 960,000 cycles achieved
Slide 26: Eos Delivers Customer Operating Flexibility
Eos Delivers Customer Operating Flexibility Multiple use cases...same efficiency, discharge energy and cycle life 85 80 75 70 65 60 55 50 45 40 0 2 4 6 Time (hours) 8 10 12 Voltage (V) 1200W/750W Voltage 1050W/500W Voltage 750W/750W Voltage 26 1200 W / 750 W Fast - Charge / discharge Power • 4 hours
Slide 27: Technology Evolution
Technology Evolution ~10 years of testing that delivers improved performance with long cycle life 9.5 27 12.5 17 Time on test Gen 1 6 years Gen 2 3 years Gen 2.3 0.5 years RTE: 65% - 70% 70 - 75% 75% - 80% Energy: 1.5kWh 2kWh 3.5kWh Cell Design: Bolted Glued Welded Average Cell Discharge Energy (Wh)
Slide 28: Safe Operation in Aggressive Environments – Elevated Temperature Testing
Safe Operation in Aggressive Environments – Elevated Temperature Testing Battery is extremely resilient to aggressive environments and recovers after extreme temperature abuse testing, without the need for HVAC En e rg y : Improved consistency and efficiency in elevated 50ºC testing. A marked differ
Slide 29: Eos Battery Outperforms Li-Ion in Extreme Temperatures
Improved levelized cost of storage, safety and reliability Flat operating curve across a wide temperature range L i - Ion T emp R a n ge 85 80 75 70 65 60 55 50 45 40 35 15 20 25 30 35 40 45 Average Battery Temperature ( ƒ C) 50 55 Total Energy Efficiency (%) 29 Eos Battery Outperforms Li - Ion in E
Slide 30: Clear Roadmap for Eos Battery Incremental Improvements
Clear Roadmap for Eos Battery Incremental Improvements 30 2018 2019 2020 2022 Gen 1.0 Gen 2.0 Gen 2.3 Gen 3.0 Gen 4.0 Power kW 0.375 Power kW 0.5 Power kW 0.75 Power kW 1.25 Power kW 1.5 Energy kW/H 1.5 Energy kW/H 2.0 Energy kW/H 3.5 Energy kW/H 5.0 Energy kW/H 6.0 RTE % 65 - 70 RTE % 70 - 75 RTE %
Slide 31: Product Development
Product Development 31 Daniel Friberg Senior Vice President, Technology
Slide 32: Typical DC System Configuration & Layout Options
Typical DC System Configuration & Layout Options 40 Cells 1kW | 4.2kWh 12 Modules 12kW | 50kWh 12 Strings 150kW | 600kWh Up to 20 connected Energy Blocks to single inverter 1 Cell Flexible Storage Configurations to Fit Customer Needs Containerized (10MW = 0.5 acres) • Outdoor rated configuration • C
Slide 33: Global Deployments with Industry Leaders
Global Deployments with Industry Leaders Kurnool, India Houston, TX Charlotte, NC San Diego, CA Norfolk, UK Microgrid DC - coupled PV + S DC - coupled PV + S C&I Demand Mgmt Microgrid C&I Demand Mgmt Pala, CA (Gen2.3) Pala, CA Wholesale Arbitrage Wholesale Arbitrage Ge n 2.0 Announced Projects Proje
Slide 34: Case Study 1: Duke Energy
Customer Feedback • Eos claim of 100% use of SOC verified • Simplicity of Eos design decreases operating cost • O&M costs estimated to be 35% lower (no HVAC), low aux. losses. • No fire risk - a significant benefit • Recycle/disposal at end of life is a significant advantage as Lithium disposal is a
Slide 35: Case Study 2: Large Global IPP
Case Study 2: Large Global IPP Energy and Efficiency During Operational Cycles Lessons Learned / Product Improvements Lesson Learned Subsequent Product Improvement Overseas D e p l o y me n t ▪ Developed operational capabilities to deploy and support product overseas ▪ Executed “Make in India” strat
Slide 36: Case Study 3: SDG&E
Observations • Successfully operated by SDG&E during rolling blackouts in August – September • Eos battery system successfully responded to all high priority dispatch by SDG&E • Customer Feedback – Eos battery system was able to operate where other battery systems in the same substation failed to op
Slide 37: Positive Performance of Eos Battery Over Strenuous UL Testing Standards
Positive Performance of Eos Battery Over Strenuous UL Testing Standards 37 Test Type/Description Eos Performance Lithium Ion Performance Eos Next Steps Over Discharge: Discharge to zero voltage x None x Ready for continued operation • Permanent damage/capacity loss, current collector dissolution Tes
Slide 38: Eos ZnYTH Technology Nail Penetration Test
Eos ZnYTH Technology No leak, no crippling rise in temperature Nail Penetration Test . (1) Source: TIAX LLC es142_sriramulu_2013_p.pdf Lithium Ion (1) Short circuit, flame, crippled by rising temperature Puncture but no leak 38 Rise in temp but no fire https://youtu.be/iIkyKX1WSIU https://www.youtub
Slide 39: Eos ZnYTH Technology Short Circuit Test
Eos ZnYTH Technology Some venting of steam, over 425A current ( >20x nom.) on a 20A rated battery. Short Circuit Test Lithium Ion (1) Heavy combustible gas venting, then a large explosion and resulting fire . (1) Source: University Of Maryland Lesson Learned Eos Product Improvements Venting of water
Slide 40: Supply Chain Readiness
Supply Chain Readiness Nathan McCormick Senior Vice President, Operations
Slide 41: Eos Manufacturing Facility
Eos Manufacturing Facility In joint venture partnership with Holtec 41 Note: Performance of Gen 2.0 Beta has been validated by a third - party commissioned expert technical report. • Dedicated Manufacturing joint venture, HI - POWER, established with Holtec International • $2 - 3bn privately held co
Slide 42: Eos Supply Chain Evolution in the Last Months
Eos Supply Chain Evolution in the Last 12 Months Safer, environmentally friendly and cheaper energy storage solution 1. Launched US Manufacturing 4. Process and Supply Improvements • Holtec: Signed 50/50 for manufacturing in the USA • 1 Fully automated and integrated facility • 1.5 GWh Annual manufa
Slide 43: Play Video Hi-Power site
Play Video Hi - Power site
Slide 44: Eos DC System Cost Roadmap
Battery cost includes fully containerized system with BMS Eos DC System Cost Roadmap 44 Current 2023 Run - Rate • >60% of cost out secured with vendor quotes and purchase orders • Improved aspect ratio and power density • Manufacturing productivity & automation • Insource/vertical integration Roa d
Slide 45: Pipeline and Growth Strategy
Pipeline and Growth Strategy Joe Mastrangelo Chief Executive Officer
Slide 46: Eos Growth Gameboard
Eos Growth Gameboard Behind the Meter: Industrial Optimization • ~8 - 10 MWh • $1m – 4m 6 to 12 Months • End user/channel partner relationship • Economics driven • Not RFP driven • 1,740 MWh Behind the Meter: Indoor Urban 6 to 12 Months • ~4 - 5 MWh • $1m – 2m • Safety and limited risk paramount • 7
Slide 47: 14.5 GWh Actively Managed Orders & Pipeline
2021 37% 2022 52% 5% 2023 2020 6% 14.5 GWh Actively Managed Orders & Pipeline 130+ potential clients engaged addressing short - term and medium - term priorities FTM Renewable Integration 53% FTM Location Capacity 35% A d d res s able Market BTM Industrial Optimization 11% BTM Indoor Urban 1% Europ
Slide 48: Pipeline Execution
Pipeline Execution Delivered Current Signed LOI’s / Commi t men t s 12M W h 3,000MWh 3MWh Project M Wh PSE&G 1 . 2 Shell/BV 0 . 6 SDG&E 0 . 6 Bryt 0 . 2 Softbank 0 . 1 Duke 0 . 1 UCSD 0 . 1 48 Project MWh Motor Oil 4.0 Nayo 3.0 Carson 3.0 Verdant 1.8 SDG&E 0.6 Project MWh IEP ض 1,000.0 Adv. Opportun
Slide 49: Sales Execution Pipeline Coverage
Sales Execution Pipeline coverage Eos’s operational and manufacturing team is working closely with sales personnel to accommodate customer orders and maintain timely shipment and delivery schedule Eos’s booked orders, LOIs and advanced opportunities of 3GWh providing ample of next two years sale tar
Slide 50: Financial Overview
Sagar C. Kurada Chief Financial Officer Financial Overview
Slide 51: Applications Generate Multiple Revenue Streams
Applications Generate Multiple Revenue Streams 51 Financing Ongoing Revenue Streams Maintenance Behind the Meter A pp licati on s Front of the Meter Applications Sales One - time Revenue Streams Long - term Service Contracts Battery Manageme nt System P erformance Monitoring Installation & Commissio
Slide 52: Projected Income Statement
Projected Income Statement 52 $m 2020 2021 2022 2023 2024 Base 2024 G r o w th 13 260 1,511 4,620 6,786 11,654 Sales Volume (MWh) % growth - 481.9% 205.7% 46.9% 152.2% Total revenue 2.5 50.3 268.6 735.5 994.9 1,700.4 - - % growth % market share Total COGS 0.1% 7.2 0.9% 63.4 434.2% 3.5% 240.9 173.8%
Slide 53: Positioned to Succeed
Positioned to succeed 53 • Energy storage an exponential growth opportunity ... a small share = a large company • Storage shifting from frequency regulation (short duration) to firm capacity (long duration) ... From <2 to >4 hours driven by solar penetration • Grid resiliency (extreme weather) requi
Slide 54: Q&A
Q&A
Slide 55: Eos Energy Storage
Eos Energy Storage Investor Presentation October 2020
B. Riley Principal Merger Corp. II — SPAC Merger (October 2020) on 6ix