Making the Case for Alternatives to Lithium-ion Batteries Hugh - PowerPoint PPT Presentation

Go With the Flow Making the Case for Alternatives to Lithium-ion Batteries Hugh McDermott Senior Vice President Business Development September 2018

Compa Company ny Ov Over erview view Company Technology Manufacturing Product  100,000 ft 2 facility in  25 year design life  Founded in 2011  Iron flow battery technology Wilsonville, OR  Second generation  HQ in Wilsonville, OR  ARPA-E and US DOE  Scaling to 1 GWh/year technology – no  Key Investors: maintenance module heritage  Efficient & scalable ‒ BASF design.  IP protected (30+ ‒ Presidio Partners, manufacturing  Unlimited cycling duty- ‒ Pangaea patent filings)  Low automation does not degrade with ‒ Cycle Capital  5+ years of research, capital costs allows for use  Worldwide sales product development a flexible, distributed  Safest, cleanest battery through multiple sales and field testing manufacturing model channels available on the market ESS Tech, Inc. 2

Energy Center TM Platform Highlights  Custom engineered design to meet specific power and storage requirements  250kW modular power train scalable design  Operating Range: Up to 125F ambient with no AC required  Low aux load requirements: ~ 2% Scalable Design from 5MW to 1GW  Energy Density: 70 MWh / acre  Capex: mid $200s / kWh (2020 delivery)  LCOS: < $0.05/kWh ESS Tech, Inc. 3

TM Pla En Ener ergy y War areh ehou ouse se TM Platf tfor orm Energy Warehouse TM  Ship anywhere, fully containerized battery with 400kWh storage  50 and 100 kW power configurations provide up to 8 hrs discharge (AC or DC) Stackable Modular  Turnkey design includes inverter, power electronics, Design and BMS  Modbus interface integrates with 3 rd party controls  No hazmat, toxicity or flammability issues  Easy to operate and maintain Easy to permit, install and commission ESS Tech, Inc. 4

Key Applications Renewables Off-Grid / Utility Scale / Grid C&I / Behind-the- Integration Microgrid Support Meter Energy Warehouse Product Fit Energy Warehouse Energy Warehouse Energy Center Energy Center (> 5MW)  Modularity for  Flexible cycling  Modularity for  Scalable from scale capability to meet scale 5MW to GW scale evolving market  Stackable for  Flexibility – add or  Up to 50C conditions density redeploy units as operation  Flexibility to needs change  Flexibility – add or  No AC or cooling support distributed Advantages  No limits multi-gen redeploy units as water required or centralized needs change flexibility  Ultra low aux loads storage siting  Easy to permit  40+ year asset life  No fire risk  Multi-cycling (with mid-life  No hidden  No toxicity capability for refurbish) liabilities revenue stacking ESS Tech, Inc. Confidential 5 ESS Tech, Inc. 5

Key Adva ey Advanta ntage ge: : Elec Electr trol olyte yte Low-Cost Abundant Electrolyte Materials Iron Salt Features  pH similar to soda and wine, no toxic materials  Inherently safe, no fire risk  Environmentally friendly, 100% recyclable  Enables standard, off-the-shelf BOP components for system – lowers costs, easy to support and maintain  Sealed, no maintenance electrolyte system design. No additives, no augmentation for life of equipment. ESS Tech, Inc. 6

Key ey Adva Advanta ntage ge: : Unlimit Unlimited ed Cy Cycli ling ng 40+ years simulated operation of electrolyte and power module ESS IFB Cycle Performance ESS IFB Cycle Performance Shallow Cycling (100% <--> 75%) Deep Cycling (100% <--> 25%) 110% 110% 100% 100% Capacity (%) Capacity (%) 90% 90% 80% 80% 70% 70% 60% 60% ESS Data Li-Ion Cells ESS Data Li-Ion Cells 50% 50% 0 2,000 4,000 6,000 8,000 10,000 0 2,000 4,000 6,000 8,000 10,000 Cycles Cycles Multi-cycle test results conducted under ARPA-E program No degradation in power output regardless of duty cycle or depth of discharge ESS Tech, Inc. 7

Key Advantage: Performance Performance • Fast response (<1ms on DC bus) • Constant Power Output to 80% DOD • Full discharge output to 100% DOD ESS Tech, Inc.

Key Advantage: Safety Profile ESS Pb-Acid NaS LTO NMC Zn Flow VRB More Safe Safety 2 0 2 0 0 0 2 Less Safe 1 2 2 0 2 0 3 3 3 2 3 2 3 2 W W COR W cor cor cor No hidden liabilities No hidden soft costs for compliance or incidence response No fire risk, no electrolyte safety risk to personnel ESS Tech, Inc. 9

Competitive Comparison Levelized Cost Analysis - 2020 CapEx Cost $0.25 $0.23 $0.22 $0.22 LCOS calculated for renewable integration: LCOS ($/kWh)  200MWh energy storage facility $0.20 $0.18  6 hours of usable storage, 1 cycle per day  25 years of operation Increased Cycles and $0.15 Longer Duration $0.12 $0.12 Increases Value $0.10 $0.10 $0.09 $0.10  2 cycles / day @ 4 hrs  2 cycles /day @ 5 hrs $0.05 $0.037 $0.05 $0.03 $0.00 Aquion Primus Redflow EOS ViZn LTO NMC LFP VRB ESS (Tesla) (BYD) Li-ion Systems ESS Tech, Inc. 10

Sp Spotli otligh ght t Insta Install llations tions US Army Corps UCSD Microgrid Diesel Microgrid Optimization 400 kWh Microgrid 225 kWh Off-grid/Renewables Operational 2017 Operational 2016 DNV-GL Stone Edge Microgrid Windfarm Zero Net Energy System 400 kWh Renewable 60 kWh Integration Microgrid/Renewables Operational 2017 Operational 2015 ESS Tech, Inc.

Summary Thank you 2/5/2018 ESS Tech, Inc. Confidential 12

Purchases for the System  Equipment (i.e. batteries) Operation & Maintenance   Site preparation (foundation) Labor to service system  Transportation (new material and old  Services used (i.e. Internet) material)  Materials used  End of life disposal 𝑀𝐷𝑃𝑇 = σ 𝐷𝑏𝑞𝐹𝑦 + σ 𝑃&𝑁 σ 𝑙𝑋ℎ Useable Energy • Accounts for capacity fade • Usable State of Charge • Downtime for required maintenance • Round trip efficiency ESS Tech, Inc. 13