Slide 1: Long-Duration Energy Storage Systems for a Cleaner Future
Long-Duration Energy Storage Systems for a Cleaner Future August 2024
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: Company Overview
Company Overview ESS Founded in 2011 with mission to develop the safest, most cost-effective and sustainable long-duration energy storage technology Headquarters Wilsonville, Oregon Facilities 200,000 ft2 manufacturing plant Automated production line currently scaling to 2GWh annual production Emplo
Slide 4: ESS Technology is Commercially Available Today
ESS Technology is Commercially Available Today 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. ESS Tech, Inc. 3
Slide 5: ESS: An Enduring Value Proposition
ESS: An Enduring Value Proposition ESS delivers the safe, market leading, long-duration energy storage solutions that empower our customers to make their clean energy vision a reality. Flexible Technology Powered by Nature Responsible and Equitable ESS’ scalable solutions serve Iron. Salt. Water. Do
Slide 6: Resiliency and reliability are harder with intermittent resources
Resiliency and reliability are harder with intermittent resources. Catalyzing a Clean Future. Every Day. ESS Tech, Inc. 5
Slide 7: Significant Market Tailwinds Building Momentum
Significant Market Tailwinds Building Momentum Catalyzing a Clean Future. Every Day. ESS Tech, Inc. 6
Slide 8: Renewable Penetration Drives Energy Storage Needs
Renewable Penetration Drives Energy Storage Needs Sharper and KW sharper ramps turn the duck curve into Storing energy 600 a canyon curve Releasing stored energy 400 Releasing stored energy 200 Load Solar Energy 0 6AM 12PM 6PM 12AM Time of Day Overgeneration and curtailment result Energy shift to ev
Slide 9: Transition to Renewable Energy Will Require 140 TWh of Long-Duration Energy Storage
Transition to Renewable Energy Will Require 140 TWh of Long-Duration Energy Storage USD bn Cumulative TWh Cumulative installed energy capacity capex investment 2040 ~85-140 TWh ~$1500-3000B Equalling 2035 ~35-70 TWh ~$1100-1800B $3 Trillion in 2030 ~5-10 TWh ~$200-500B Investment 2025 ~1 TWh ~$50B 0
Slide 10: Market Size ($B): Batteries are a Big Part of the Solution
1800 Batteries are 1600 a BIG Part of 1400 the Solution 1200 Oil Fuel Cells Market Size ($B) Electrolyzers 1000 Offshore Wind Onshore Wind Solar PV 800 600 400 Batteries 200 0 2020 2030 2040 2050 Catalyzing a Clean Future. Every Day. Source: IEA, World Energy Outlook, 2021 ESS Tech, Inc. 9
Slide 11: Renewable Penetration Drives Energy Storage Needs
Renewable Penetration Drives Energy Storage Needs PEAK DEMAND “The future is bright for energy PEAK DEMAND storage,” said Andrés Gluski, chief executive of AES Corporation, one of the world’s largest power companies. “If you want more renewables on the grid, you need more batteries. It’s not going t
Slide 12: Li-ion Presents Roadblocks to Energy Transition
Li-ion Presents Roadblocks to Energy Transition Short-term Critical energy capacity mineral mining Expensive Energy long-term security Catalyzing a Clean Future. Every Day. ESS Tech, Inc. 11
Slide 13: Global Collaboration to Advance Iron Flow Battery Market Adoption
Global Collaboration to Advance Iron Flow Battery Market Adoption Go-To-Market Intellectual Property “The demand for long-duration energy Honeywell to integrate ESS license to Honeywell’s flow storage represents a compelling market ESS technology into battery intellectual property global go-to-marke
Slide 14: Representative ESS Projects
Representative ESS Projects Airside Operations Distributed Generation Utility-Scale DER Utility-Scale DER Green Baseload Energy Catalyzing a Clean Future. Every Day. ESS Tech, Inc. 13
Slide 15: Commercial Traction: Significant, Signed Agreements
Commercial Traction: Significant, Signed Agreements Customer Background Deal Details Status Sacramento Large, CA-based utility serving Shipped first phase Phase 1 commissioning completed Municipal 1.5 million electricity customers Utility District Developing LDES Center of Excellence Units cycling a
Slide 16: 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 17: Differentiated Iron Flow Design and IP Protected
Differentiated Iron Flow Design and IP Protected Power Module (-) (+) ESS IP portfolio Electrode Electrode Current • 250+ patents granted and in pipeline Collector pending applications • Undisclosed number of trade secrets and identified patents Proton Pressure • World-leading iron flow expertise an
Slide 18: Energy Warehouse Overview
Energy Warehouse Overview First commercial Fully integrated deployment in 2015 containerized design EW-500 shipping Fast and easy to deploy in 2024 and commission Specifications Rated Discharge Power 75 kW at POC Rated Charge Power 90 kW at POC Rated Capacity 420 kWh Discharge Capacity Up to 500 KwH
Slide 19: Energy Center Overview
Energy Center Overview Front-of-the-meter Modular design for Currently in production, solution utility-scale applications scaling in H2 2024 Specifications Configurable Range Customizable up to GW scale Rated Capacity 145 kW DC / 1.16 MWh DC Ambient Temperature -15ºC to +50°C (5ºF to 122°F) Operatin
Slide 20: ESS Benefits
ESS Benefits What Customers Demand How ESS Transforms the Grid • Up to 12 hours • Can replace coal and gas with solar and wind Longer duration • No capacity fade • No power fade • Designed for utility-scale applications • Lower LCOS than other technologies • The first truly low-cost flow battery Low
Slide 21: 85%+ Less Capital Required – Ready to Scale Globally
85%+ 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 ~$20 Li-Ion competitor $in millions/GWh of production capacity Catalyzing a Clean Future. Every Day. Sour
Slide 22: EXIM Partnership Provides Long-Term, Low-Cost Financing to Support Growth
EXIM Partnership Provides Long-Term, Low-Cost Financing to Support Growth Up to $50 million in total funding Expect to draw: Long-Term $10 million in 2024 Low-Interest $10-15 million in 2025 Funds for increasing Extended repayment terms manufacturing Interest-only payments capacity until 2026 Cataly
Slide 23: Our 2024 Operational Focus
Our 2024 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 24: Four Major Technologies of the Iron Flow Battery
Four Major Technologies of the Iron Flow Battery 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 differe
Slide 25: 2023 Improvements
2023 Improvements Build & Commission Intellectual Property 60% 45% 73% 78 31 Brought down costs Lowered labor Lowered the cycle Filed 78 new 31 new patents to build an EW by hours for balance time to build an patents granted for a total of almost 60% in 2023 of system by 46% EW by 73% more than 85 p
Slide 26: Q2 2024 Results
Q2 2024 Results Revenue Adjusted EBITDA $348 thousand Loss of $18.8 million Non-GAAP Cash and Operating Expenses short-term investments $9.1 million $74.4 million Will Add ~$10 million in cash from low-interest funding from EXIM in '24 Catalyzing a Clean Future. Every Day. ESS Tech, Inc. 25
Slide 27: Thank You
Thank You