Slide 1: Long Duration Energy Storage Systems for a Cleaner Future
Long Duration Energy Storage Systems for a Cleaner Future August 2023
Slide 2: Disclaimers
Disclaimers This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements can be identi
Slide 3: ESS is a Category Defining Company
ESS is a Category Defining Company Large and Simple, yet fast-growing TAM revolutionary technology Compelling Low risk value proposition expansion plan Considerable pipeline of opportunities Catalyzing a Clean Future. Every Day. 2
Slide 4: Renewable Penetration Drives Further Storage Needs
Renewable Penetration Drives Further Storage Needs Duck Curve Evolution Shows Sharp Ramp Energy Shift to Evenings Using Needs and Overgeneration Risk Long Duration Storage CAISO lowest net load day each spring KW (March - May, 2015 - 2023), gigawatts 600 Storing Energy Releasing Stored Energy 400 Re
Slide 5: 140 TWh of Long Duration Energy Storage Needed
140 TWh of Long Duration Energy Storage Needed USD bn Cumulative With LDES, total energy TWh Cumulative installed energy capacity capex investment system costs can go down 2040 ~85-140 TWh ~$1500-3000B Renewable power with LDES can be cost effective 2035 ~35-70 TWh ~$1100-1800B COP 26: Major global
Slide 6: Significant Market Tailwinds Building Momentum
Significant Market Tailwinds Building Momentum Catalyzing a Clean Future. Every Day. 5
Slide 7: Batteries are a Big Part of the Solution
Batteries are a Big Part of the Solution Projected market size of energy technologies to reach zero emissions 1800 1600 1400 1200 Oil Fuel Cells Market Size ($B) Electrolyzers 1000 Offshore Wind Solar PV 800 Onshore Wind 600 400 Batteries 200 0 2020 2030 2040 2050 Catalyzing a Clean Future. Every Da
Slide 8: Challenges Face the Grid Storage Incumbent: Li-ion
Challenges Face the Grid Storage Incumbent: Li-ion ESS has received increased inbound opportunities due to Li-ion uncertainty Catalyzing a Clean Future. Every Day. 7
Slide 9: Commercial Traction: Large, Signed Supply Agreements
Commercial Traction: Large, Signed Supply Agreements Customer Background Deal Details Status Sacramento Large, CA-based utility serving Shipped first phase Six EWs onsite Municipal 1.5 million electricity customers Developing LDES Center of Excellence Commissioning in process Utility District Aggres
Slide 10: Commercial Traction: Deals with Large Upside
Commercial Traction: Deals with Large Upside Customer Background and Deal Details Broader Opportunity Turlock Pairing storage with solar that will cover CA 20-50MW by 2030 aqueducts, providing multiple benefits Excess solar to capitalize in ISO for peak shifting Demonstration of new solar storage fo
Slide 11: ESS Transforms the Value Proposition for Long Duration Storage
ESS Transforms the Value Proposition for Long Duration Storage What Customers Demand How ESS Transforms the Grid Up to 10 hours Can replace coal and gas with solar and wind Longer duration No capacity fade Designed for utility-scale applications No power fade Lower LCOS than other technologies The f
Slide 12: Differentiated Iron Flow Design and IP Protected
Differentiated Iron Flow Design and IP Protected Power Module (-) (+) ESS IP portfolio Electrode Electrode Current • 235 patents granted and in pipeline Collector pending applications • Undisclosed number of trade secrets and identified patents Proton Pressure • World-leading iron flow expertise and
Slide 13: Energy Warehouse™ Overview
Energy Warehouse™ Overview Specifications First customer deployment in 2015 Nominal Power 75kWdc Peak Energy Capacity 500kWh Generation II launched in 2020 Rated Energy Capacity 400kWh Module Cycle Life >20,000 cycles Containerized fully-integrated design Ambient Temperature 0°C to +40°C Expected Li
Slide 14: Energy Center Overview
Energy Center Overview Power Container Tank Container Front-of-the-meter solution Specifications Configurable Range Customizable up to GW scale; 145kW DC increments Production begins Q4 2023 Rated Capacity 8MWh per MW installed Total Capacity 10MWh per MW installed Modular design for Ambient Tempera
Slide 15: 70%+ Less Capital Required – Ready to Scale Globally
70%+ Less Capital Required – Ready to Scale Globally Simple, low-cost production in the USA Simple, automated ESS manufacturing line ~$140 VS Expensive, complex Li-Ion battery manufacturing line ~$40 Li-Ion competitor $in millions/GWh of battery module production capacity Catalyzing a Clean Future.
Slide 16: Our 2023 Operational Focus
Our 2023 Operational Focus 01 02 03 04 Scaling Improving supply Optimizing product Reducing time manufacturing chain quality designs through to commission capacity, including and outsourcing simplification solutions at automation and non-core of electrical client sites injection molding components a
Slide 17: Four Major Technologies of the EW
Four Major Technologies of the EW Battery Modules Proton Pumps Electrolyte Balance of System (BoS) (Stacks) •Intellectual property that •High-grade iron, •Necessary componentry to make the differentiates ESS salt, and water other three work together •Intellectual property that •Keeps the iron flow b
Slide 18: Energy Warehouse Product Improvements Rev 1 to Rev 2
Energy Warehouse Product Improvements Rev 1 ► Rev 2 Plumbing improvements Electrical improvements Piping / fitting / Electrical wiring and Reduced fail points for Cost reduction union / flange reduction component reduction improved quality (material and labor hours) Design & process improvements red
Slide 19: ESS Deployment Scope and Commissioning
ESS Deployment Scope and Commissioning Early Contracts Going Forward ESS Deploys Field – Prime EPC or Customer responsible Team to Commission ESS implemented for site, electrical connect, as turn-key model auxiliary power, and comms Q3 2022 Q4 2022 + H1 2023 Today Eight weeks to Four weeks to Progre
Slide 20: Energy Warehouse Revenue Recognition
Energy Warehouse Revenue Recognition Early Contracts New Contracts • Contracts for early shipments included deliverables • Demonstrated history of at the project level shipment / acceptance • No history of commercial • Simpler contracting with shipment / acceptance standard provisions • Shifting req
Slide 21: Path to Profitability
Path to Profitability 2021 – Early 2022 2022 2023 and Beyond Very low volume, Significant design enhancements Ongoing design and vendor/supply chain upgrades hand built and vendor transitions Increasing volume (lower fixed cost/unit) Higher labor content More units produced through automation Signif
Slide 22: Q2 Results
Q2 Results Revenue Adjusted EBITDA $2.8 million Loss of $20.5 million Non-GAAP Cash and Operating Expenses short-term investments $24.3 million $99.5 million Catalyzing a Clean Future. Every Day. 21
Slide 23: Thank You
Thank You