Long-Duration
Energy Storage Systems for a Cleaner Future
May 2024
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 identified by the use of forward looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "possible," "may," "might," "will," "potential," "projects," "predicts," "continue," "could," "would" or "should," or, in each case, their negative or other variations or comparable terminology. These words and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are based on management's current expectations, but actual results may differ materially due to various factors, risks, and uncertainties, including, but not limited to: our financial and business performance, including financial projections and business metrics; changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; the implementation, market acceptance and success of our technology implementation and business model; our ability to scale in a cost-effective manner; developments and projections relating to our competitors and industry; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; our future capital requirements and sources and uses of cash; our ability to obtain funding for our operations; our business, expansion plans and opportunities; our relationships with third-parties, including our suppliers, customers, and partners; issues related to the shipment and installation of our products; issues related to customer acceptance of our products; the outcome of any known and unknown litigation and regulatory proceedings; and other risks and uncertainties discussed elsewhere in our public filings. The forward-looking statements contained in this report are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks may not be exhaustive. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this report. In addition, even if our results or operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this report, those results or developments may not be indicative of results or developments in subsequent periods.
All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong to their respective owners and ESS's use thereof does not imply an affiliation with, or endorsement by the owners of such trademarks, copyrights, logos and other intellectual property. Solely for convenience, trademarks and trade names referred to in this Presentation may appear with the ® or symbols, but such references are not intended to indicate, in any way, that such names and logos are trademarks or registered trademarks of ESS.
Any financial and operating forecasts and projections contained herein represent certain estimates of ESS as of the date thereof. ESS's independent public accountants have not examined, reviewed or compiled the forecasts or projections and, accordingly, neither expresses an opinion or other form of assurance with respect thereto. ESS and its management team cannot give any assurance that the forecasts or projections contained herein accurately represent ESS's future operations or financial conditions. Such information is subject to a wide variety of significant business, economic and competitive risks and uncertainties, including but not limited to those set forth above that could cause actual results to differ materially from those contained in the prospective financial information. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of ESS or that actual results will not differ materially from those presented in the prospective financial information. Some of the assumptions upon which the projections are based inevitably will not materialize and unanticipated events may occur that could affect results. Therefore, actual results achieved during the periods covered by the projections may vary and may vary materially from the projected results. Inclusion of the prospective financial information in this presentation should not be regarded as a representation by any person that the results contained in the prospective financial information are indicative of future results or will be achieved.
This Presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information. This information involves many assumptions and limitations and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data that has been contained in these industry publications and other publicly available information. Accordingly, neither ESS nor its respective affiliates and advisors makes any representations as to the accuracy or completeness of these data. This Presentation contains references to ESS's achievements compared to other companies. All of such references are based on the belief of ESS's management based on publicly available information known to ESS's management.
The financial information and data contained in this Presentation is unaudited and does not conform to Regulation S-X promulgated under the Securities Act of 1933, as amended. This Presentation also includes non-GAAP financial measures, including gross margin, non-GAAP operating expenses and Adjusted EBITDA. ESS believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to ESS's financial condition and results of operations. ESS's management uses certain of these non-GAAP measures to compare ESS's performance to that of prior periods for trend analyses and for budgeting and planning purposes. Not all of the information necessary for a quantitative reconciliation of these forward-lookingnon-GAAP financial measures to the most directly comparable GAAP financial measures is available without unreasonable efforts at this time. Specifically, ESS does not provide such quantitative reconciliation due to the inherent difficulty in forecasting and quantifying amounts necessary for such reconciliations.
Catalyzing a Clean Future. Every Day.
1
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. | 2 |
Resiliency
and reliability are harder with intermittent resources.
Catalyzing a Clean Future. Every Day.
3
Renewable Penetration Drives Energy Storage Needs
Sharper and
sharper ramps turn the duck curve into a canyon curve
Overgeneration and curtailment result
KW
600
400
200
0
Storing energy
Releasing
stored energy
Releasing stored energy
Load
Solar Energy
6AM | 12PM | 6PM | 12AM |
Time of Day |
Energy shift to evenings using long-duration storage
Lack of storage caused more than 2.6 TWh to be wasted in 2023 in California alone
Catalyzing a Clean Future. Every Day. | Source: EIA, CAISO and Company reports |
4
$3 Trillion Investment
Catalyzing a Clean Future. Every Day.
TWh Cumulative installed energy capacity | USD bn Cumulative | |||||||||||||||
capex investment | ||||||||||||||||
2040 | ~85 | -140 | TWh | ~$1500-3000B | ||||||||||||
2035 | ~35- | 70 TWh | ~$1100-1800B | |||||||||||||
2030 | ~5 | -10 TWh | ~$200-500B | |||||||||||||
2025 | ~1 TWh | ~$50B | ||||||||||||||
0 | 20 | 40 | 60 | 80 | 100 | 120 | 140 |
1 TWh = 1 million MWhs
More information www.ldescouncil.com | 5 |
Batteries are a BIG Part of the Solution
1800
1600
1400
Oil | ||||||||||||||
($B) | 1200 | Fuel Cells | ||||||||||||
Electrolyzers | ||||||||||||||
Size | 1000 | Offshore Wind | ||||||||||||
Onshore Wind | ||||||||||||||
Solar PV | ||||||||||||||
Market | 800 | |||||||||||||
600 | ||||||||||||||
400 | ||||||||||||||
Batteries | ||||||||||||||
200 | ||||||||||||||
0 | ||||||||||||||
2020 | 2030 | 2040 | 2050 |
Catalyzing a Clean Future. Every Day. | Source: IEA, World Energy Outlook, 2021 |
6
Li-ion Presents Roadblocks to Energy Transition
Short-term | Critical |
energy capacity | mineral mining |
ExpensiveEnergy
long-termsecurity
Catalyzing a Clean Future. Every Day. | 7 |
Global Collaboration to Advance Iron Flow Battery Market Adoption
Go-To-Market | Intellectual Property |
Honeywell to integrate | ESS license to Honeywell's flow |
ESS technology into | battery intellectual property |
global go-to-market offering | |
$300M targeted purchases | Joint Innovation |
in first phase of agreement | Companies invest in joint |
development for continual technology | |
Global reach to | advancement, cost reduction and |
Honeywell's customers | packaging of IFB systems |
Catalyzing a Clean Future. Every Day.
"The demand for long-duration energy storage represents a compelling market opportunity within the energy transition and the combination of Honeywell and ESS technology can accelerate decarbonization for the commercial, industrial and utility sectors."
Bryan Glover
Chief Growth Officer
Honeywell Performance Materials and Technology (PMT) group
8
Representative ESS Deployments
Airside Operations
Distributed Generation
Utility-Scale DER | Utility-Scale DER |
Green Baseload Energy
Catalyzing a Clean Future. Every Day.
9
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ESS Tech Inc published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2024 19:56:07 UTC.