ESS Announces Strategic Partnership to Deploy Long-Duration Energy Storage in Australia and Deliver an Expected 12 GWh of Iron Flow Batteries

Rhea-AI Summary

ESS Inc. (NYSE: GWH) has entered a strategic partnership with Energy Storage Industries Asia Pacific to manufacture and distribute iron flow batteries in Australia, New Zealand, and Oceania. ESS will supply 70 Energy Warehouse systems in 2022 and 2023, while ESI will build a local manufacturing facility in Queensland expected to achieve 400 MW annual capacity. This agreement aims to address the increasing demand for long-duration energy storage, supporting the transition to a sustainable energy future.

Positive

• Strategic partnership with ESI to enhance distribution and manufacturing of iron flow batteries.
• Supply of 70 Energy Warehouse systems expected to accelerate growth in Australia and Oceania.
• New manufacturing facility in Queensland designed to provide 400 MW annual energy storage capacity.

Negative

• None.

Agreement between ESS and Energy Storage Industries Asia Pacific to deliver grid-scale iron flow batteries will accelerate the deployment of long-duration energy storage and catalyze the clean energy transition in Australia, New Zealand and Oceania.

WILSONVILLE, Ore.--(BUSINESS WIRE)-- ESS Inc. (NYSE: GWH) today announced a strategic partnership with Energy Storage Industries Asia Pacific (“ESI”) to distribute and manufacture iron flow batteries utilizing ESS technology in Australia, New Zealand and Oceania to meet rapidly growing demand for long-duration energy storage in the region.

Under the terms of the agreement, ESS will initially supply 70 complete 75kW / 500kWh Energy Warehouse (EW) systems to ESI in 2022 and 2023. Concurrently, ESI will construct a manufacturing facility in Queensland, Australia, equipped to conduct final assembly of ESS systems from 2024 onward. Systems manufactured at the Queensland facility will utilize “core component kits” supplied by ESS including battery modules, proton pumps, and other unique components. Core component kits will continue to be manufactured in Wilsonville, Ore. The ESI manufacturing facility is designed to reach a production capacity of up to 400 MW of energy storage annually.

“We look forward to deploying ESS technology in Australia and the region to meet the needs of energy customers and build a sustainable, resilient energy future,” said Eric Dresselhuys, CEO of ESS. “ESI brings a wealth of experience and expertise in clean energy and energy storage and a keen understanding of the Australian energy market. We look forward to working with them to advance our shared mission to accelerate the clean energy transition by deploying long-duration energy storage solutions in the region.”

“ESS is an ideal technology partner to meet the extraordinary demand for long-duration energy storage in Australia and the region,” said Stuart Parry, Managing Director of ESI. “Safe and non-toxic ESS iron flow batteries are perfect in Australia’s harsh environment and the ability to locally source electrolyte provides insurance against supply chain risks and price escalation. The transition to clean energy requires new long-duration storage solutions and we look forward to working with ESS to meet the needs of an increasingly renewable energy grid.”

ESS iron flow technology provides cost-effective long-duration energy storage and is ideal for applications that require from 4-12 hours of flexible energy capacity. ESS systems provide resilient, sustainable energy storage well-suited for multiple use cases including utility-scale renewable energy installations, remote solar + storage microgrids, grid load-shifting and peak shaving, and other ancillary grid services. ESS technology is safe, non-toxic and has a 25-year lifespan without capacity fade. Demand for long-duration energy storage systems is expected to grow rapidly in Australia; New South Wales announced the procurement of 2 GW of LDES in its recent Electricity Infrastructure Roadmap.

ESS anticipates that Energy Warehouse deliveries to ESI will begin in 2022.

About ESS Inc.

At ESS (NYSE: GWH), our mission is to accelerate global decarbonization by providing safe, sustainable, long-duration energy storage that powers people, communities and businesses with clean, renewable energy anytime and anywhere it’s needed. As more renewable energy is added to the grid, long-duration energy storage is essential to providing the reliability and resiliency we need when the sun is not shining and the wind is not blowing.

Our technology uses earth-abundant iron, salt and water to deliver environmentally safe solutions capable of providing up to 12 hours of flexible energy capacity for commercial and utility-scale energy storage applications. Established in 2011, ESS Inc. enables project developers, independent power producers, utilities and other large energy users to deploy reliable, sustainable long-duration energy storage solutions. For more information visit www.essinc.com.

About Energy Storage Industries Asia Pacific

Energy Storage Industries Asia Pacific (ESI) is a Queensland-based, 100 percent Australian-owned company that provides reliable and environmentally friendly renewable energy storage solutions that are essential for Australia’s transition to a renewable energy future.

We are investing up to $70 million in Maryborough to manufacture and distribute low-cost, long-life iron flow batteries that allow large-scale energy storage for wholesale electricity generators, energy retailers, and commercial and industrial (C&I) customers. For more information visit https://esiap.com.au.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005620/en/

Investors:

Erik Bylin

investors@essinc.com

Media:

ESS:

Morgan Pitts

+1 503.568.0755

Morgan.pitts@essinc.com

ESI:

Three Plus

+61 7 3167 1200

Source: ESS, Inc.

FAQ

What is the recent partnership involving GWH?

ESS Inc. (NYSE: GWH) has partnered with Energy Storage Industries Asia Pacific to manufacture and distribute iron flow batteries in Australia, New Zealand, and Oceania.

How many Energy Warehouse systems will ESS supply?

ESS will supply 70 Energy Warehouse systems to Energy Storage Industries Asia Pacific in 2022 and 2023.

Where will the new manufacturing facility be located?

The new manufacturing facility will be located in Queensland, Australia.

What is the expected production capacity of the Queensland facility?

The Queensland facility is designed to reach a production capacity of up to 400 MW of energy storage annually.

How does this partnership impact the demand for long-duration energy storage?

The partnership is aimed at meeting the rapidly growing demand for long-duration energy storage solutions in the region.