Ess Tech, Inc. · NYSE:GWH
Ess Tech — ACON S2 Acquisition — SPAC Merger (September 2021)
44 slides from Ess Tech's SPAC merger presentation, Sep 2, 2021
Slide 1: August 2021
August 2021 Exhibit 99.1
Slide 2: Disclaimer
This presentation (this “Presentation”) was prepared for informational purposes only to assist interested parties in making their own evaluation of the proposed transaction (the “Transaction”) between Acon S2 Acquisition Corp. (“ACON”, “we”, or “our”) and ESS Inc. (“ESS”). This Presentation is for d
Slide 3: Game Changing Technology: The Power Grid of the Future
Game Changing Technology The Power Grid of the Future – Feasible Today STABLE. SECURE. CLEAN. CONFIDENTIAL
Slide 4: Transaction Overview
Transaction Overview Founded in 2011 to enable the stable, decentralized and decarbonized power grid of the future ESS ACON S2 (NASDAQ: STWO): a special purpose acquisition company $250 million cash in trust PIPE size of $250 million Offering Size $1,072 million pro forma enterprise value Attractive
Slide 5: Welcome
Welcome
Slide 6: Our Goal: To be the leading provider of long-duration energy storage technology
Our Goal: To be the leading provider of long-duration energy storage technology CONFIDENTIAL CONFIDENTIAL
Slide 7: Growing Market Momentum
California targeting 1 GW of long-duration storage by 2025 Federal policy adds potential for investment, tax credits EU RPS increased to 40% by 2030, up from 32% U.S. Renewables now more than 25% of all U.S. generation (EIA, June 2021) Growing Market Momentum ESS believes the potential for long-dura
Slide 8: Regular Positive Updates to Market Growth Forecast
Regular Positive Updates to Market Growth Forecast “U.S. battery storage projects grow by 10 times beyond the 2019 figure between 2021 and 2023 to contribute 10,000 MW to the grid”
Slide 9: Investment Highlights
Investment Highlights First Long-duration Storage Company To Go Public Large Addressable Market + Macro Tailwinds Differentiated Technology With First Mover Advantage Strong Balance Sheet Positions Us For Growth
Slide 10: ESS: A Category Defining Investment Opportunity
Large and Fast-Growing TAM: ~$56bn by 2027 growing at a 33% CAGR1 Low Risk Expansion Plan: Field proven3 technology with low-cost manufacturing build out Simple Yet Revolutionary Technology: Iron, salt and water; strong patent portfolio Premier Management Team: Founders and inventors supported by an
Slide 11: Market Opportunity
Market Opportunity
Slide 12: What Is Long Duration Storage?
Shift Supply to Meet Demand from 4 – 12 Hours Low Cost to Enable Replacement of Alternatives (Peaker Plants) Reliable (Grid Stability) What Is Long Duration Storage? CONFIDENTIAL CONFIDENTIAL
Slide 13: ESS Transforms the Value Proposition for Long Duration Storage
ESS Transforms the Value Proposition for Long Duration Storage Longer Duration Up to 12 hours Flexibility allows multiple revenue streams Can replace coal and natural gas with solar and wind power Greater resiliency to unexpected events Low Cost Lower LCOS than other technologies in the market Incre
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Slide 16: One Technology – Two Products of Different Scale
Energy Warehouse at Jean Airport One Technology – Two Products of Different Scale Energy Warehouse™ Energy Center™ Behind the meter solution 50kW – 90kW configurable range First commercial deployment in 2015 Generation II launched in 2020 Containerized design for turnkey delivery Fast to build and c
Slide 17: Validated by a Blue-Chip Customer Base
Utilities IPPs/Developers Commercial & Industrial Demand Drivers EW EC Select Customers/ Use Cases Select Pipeline EW EC EW EC Peaker replacements T&D upgrade deferrals Wildfire resiliency Distributed energy services products Peaker replacements Resource adequacy & grid reliability 24/7 power supply
Slide 18: ESS Wins on Performance
ESS Wins on Performance Compelling Performance Can cycle when needed with no impact to asset life Operates at peak efficiency independent of outside environment No heating/cooling systems needed Safe for deployment to urban areas or harsh and pristine environments No Explosion Risk Non-flammable Li-
Slide 19: Flow Batteries are Scalable, Low Cost, Long Duration Storage
Flow Batteries are Scalable, Low Cost, Long Duration Storage Increasing Storage Duration = Same System, More Electrolyte Component Number Cost Fixed Equipment: i.e., power electronics, tank, structure/supports 1x Power Module 1x Electrolyte 4x A theoretical 100KW/400KWh ESS battery contains: 400KWh
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Slide 21: ESS Wins on Sustainability
Sustainability Focus Areas Responsibly Sourced Materials Raw ingredients of iron, salt and water are earth-abundant Recyclability Contains no toxic materials and requires no special permits for disposal2 Global Warming Potential (GWP) 67% lower CO2 emissions than Li-Ion1 CONFIDENTIAL ESS Wins on Sus
Slide 22: ESS is a Category Defining Technology for Long Duration Storage
Low cost at 4 – 12 hours Field proven1 Earth abundant materials Unlimited cycling Zero capacity fade Wide operational temperature range Environmentally sustainable No fire/ explosion risk ESS is a Category Defining Technology for Long Duration Storage Li-Ion Li Metal Vanadium, Zinc Bromine Sodium Su
Slide 23: ESS Technology is Proven and Insured
EXIM Munich RE “The ability to ensure battery performance is a key piece of the puzzle in decarbonizing our energy sector.” –Peter Röder, Member of the Board of Management, Munich RE Aon One Beacon Insurance Surety and Corporate Bonding Growing project surety capacity US Export-Import Bank Qualified
Slide 24: Technology Overview
Technology Overview
Slide 25: Technological Breakthrough, Field Proven and Shipping Now
Iron Flow first conceived in 1970s But “dirty” electrolyte caused rapid degradation Field proven1; S200 shipping now 2015 First commercial deployment 2019 S200 commercial battery module launched 2017 Gen I EW product line launched 2012 Awarded ARPA-e grant for development of Iron based battery 2020
Slide 26: Robust Intellectual Property Portfolio
Undisclosed Number of Trade Secrets and Identified Patents 125+ Patents Granted and in Pipeline Pending Applications World-leading Iron Flow expertise, and roadmap to additional breakthroughs and advantages = Patent protected ESS IP Portfolio Power Module Proton Pump Current Collector Pressure Plate
Slide 27: ESS Site, Manufacturing & Shipping Video
ESS Site, Manufacturing & Shipping Video
Slide 28: Case Studies
Case Studies
Slide 29: Use Case: BTM Microgrid (Customer-Owned), TerraSol
Use Case BTM Microgrid (Customer-Owned) Customer TerraSol Energies, Inc. Project Location Sycamore, Pennsylvania Use Case Behind the meter microgrid owned by customer Customer is an electronics recycling facility Energy shifting, load management Energy Warehouse™ product (75kW/400kWh) Project Benefi
Slide 30: Use Case: BTM Microgrid, Medical Device Manufacturer
Use Case BTM Microgrid (Customer-Owned) Customer Medical Device Manufacturer Project Location Southern California (multiple sites) Use Case Behind the meter microgrid owned by customer Customer is a vertically integrated medical device manufacturer Multiple project sites and generation sources (micr
Slide 31: Use Case: BTM Microgrid (Utility-Owned)
Use Case BTM Microgrid (Utility-Owned) Customer US Utility Project Location Western US Use Case Standalone storage owned by utility in behind the meter application (DER) Customer energy shifting, load management, resiliency for critical loads Energy Warehouse™ product Project Benefits Customer energ
Slide 32: Use Case: FTM Microgrid (Utility-Owned), California
Use Case FTM Microgrid (Utility-Owned) 31 Customer Domestic Utility Project Location California Use Case Microgrid solutions required to mitigate Public Safety Power Shutdown impacts Solar + storage microgrid Energy Warehouse™ product (540kW/3MWh storage) Project Benefits Multi-day resiliency for cr
Slide 33: Use Case: Green Hydrogen, Siemens-Gamesa
Use Case Green Hydrogen Customer Siemens-Gamesa Project Location Denmark Use Case Wind + Solar + Storage + H2 Energy Warehouse™ product Project Benefits Flexible project package that can be optimized for sustainable resource availability and market conditions (for H2) Why ESS Won No battery degradat
Slide 34: Use Case: FTM Microgrid (Utility-Owned), Chile
Use Case FTM Microgrid (Utility-Owned) Customer Utility Project Location Chile Use Case Remote grid served by RoR hydro and diesel gensets Storage systems will minimize genset usage Energy Warehouse™ product (300kW/2MWh) Project Benefits $3.1M incremental savings over LIB Avoids 12 years of diesel g
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Slide 36: Simple, Low-cost Production in the USA
Simple, Low-cost Production in the USA 97% Less Capital Required – Ready to Scale Globally Li-Ion competitor $in millions/GWh of Battery Module Production Capacity Simple, automated ESS manufacturing line Expensive, complex Li-Ion battery manufacturing line SourceLux Research.
Slide 37: Capital Investment Will Enable Rapid Expansion
~$493M1 Net Cash for Growth Further Extend Technology Advantage Higher performance electrolyte to enable an 85% reduction in cost per megawatt hour by 2025 Launch Energy Center™ Deploy product that is optimized for the fast-growing utility-scale storage segment Increase Manufacturing Capacity Fully
Slide 38: Financial Forecast
Financial Forecast
Slide 39: High Quality Pipeline
Booked 100% Negotiating Awarded $2 Million $37 Million $300 Million High Quality Pipeline 5% Awarded Negotiating Qualifying Awarded Negotiating Qualifying Global Identified Opportunities 6% Booked Projected Pipeline for Energy Center™ and Energy Warehouse™ $7+ Billion Pipeline for Continued Growth i
Slide 40: ESS' Robust Revenue Growth
ESS’ Robust Revenue Growth 0% 0% 1% 2% 4% 6% EC EF EW Services Projected Revenue by Product Offering ($in millions) Growth accelerates as Energy Center deployments start in 2023 Forecast driven by identified pipeline of near-term opportunities ESS expansion into Australia (2023) and Europe (2024) su
Slide 41: ESS Delivers Compelling Profitability
ESS Delivers Compelling Profitability Projected Gross Margin ($in millions) Projected EBITDA ($in millions) 16% 27% 31% 37% 37% 1% 16% 22% 29% 30% 2021E Update*: COGS expensed 2022E Update*: (~$43M) Drivers: Accelerating EC&EW supply chain & build 2021E Update*: (~$42M) 2022E Update*: (~$87M) Driver
Slide 42: Potential Upside to Business Plan
New US federal and state policies on infrastructure, decarbonization and national security Emerging mandates in EU and Asia-Pacific on decarbonization and storage Demand impact of USTDA, Power Africa, UNDP and World Bank targets Further economies of scale and technology enhancements Additional reven
Slide 43: @ESS
@ESS
Slide 44: Catalyzing a Cleaner Future
- @bESS" CATALYZING A CLEANER FUTURE