ESS’ Iron Flow Batteries Selected by Indian Energy and the California Energy Commission to Demonstrate Utility-Scale Resilient Microgrids

Rhea-AI Summary

ESS Tech, known for its long-duration energy storage (LDES) solutions, is partnering with Indian Energy and the California Energy Commission (CEC) to demonstrate utility-scale resilient microgrids at Marine Corps Air Station Miramar. This initiative, funded by a $4.85M CEC grant, aims to integrate ESS’s non-lithium iron flow batteries into microgrids, enhancing energy resilience and affordability for Native American Tribes and the Department of Defense. Over the next six months, the project will explore optimal use cases in California's energy market, such as solar peak shifting and grid ancillary services. This collaboration supports California’s goal of 100% zero-emission electricity by 2045, with LDES resources projected to grow up to 37 GW. ESS's technology is already operational in various California locations, including Sacramento Municipal Utility District and Burbank Water and Power.

Positive

• ESS Tech's partnership with Indian Energy and CEC introduces innovative energy solutions for resilient microgrids.
• The $4.85M CEC grant supports LDES technology validation, fostering market confidence.
• ESS's iron flow batteries enhance energy resilience and affordability for Native American Tribes and the Department of Defense.
• The project aligns with California's 100% zero-emission electricity goal by 2045.
• ESS's technology is already deployed in key Californian utilities, demonstrating proven effectiveness and scalability.

Negative

• None.

Insights

Financial Analyst

The partnership between ESS Tech, Inc. and Indian Energy, supported by the California Energy Commission (CEC), indicates a strategic move towards large-scale deployment of long-duration energy storage (LDES) technology. Financially, this partnership has the potential to open new revenue streams for ESS through government-funded projects and contracts. The $4.85M agreement already secured signals that significant financial support is being allocated to promote LDES technologies.

For retail investors, this partnership can translate to improved company valuation over time as ESS's technology gains validation and market confidence. The involvement of the Department of Defense and other government bodies provides a level of credibility that could attract additional investment.

Short-term: Expect potential positive movement in stock price driven by investor sentiment and public interest. Long-term: As the projects come to fruition and demonstrate successful integration, there might be more stable financial gains and potentially significant market share in the LDES sector.

Energy Market Analyst

The integration of ESS's iron flow batteries into the Rapid Integration and Commercialization Unit (RICU) at Marine Corps Air Station Miramar highlights a pivot towards sustainable and resilient energy solutions. LDES technologies address the key challenge of energy storage for renewable sources, offering prolonged energy retention compared to traditional lithium-ion batteries.

In the broader energy market, LDES growth could see up to 37 GW by 2045, as per a California Energy Commission report, which emphasizes the long-term scalability of this technology. This project, therefore, positions ESS favorably in a growing market segment aimed at decarbonizing energy grids.

For investors, the critical insight is the potential for widespread adoption of iron flow technology. This could result in a transition towards more sustainable energy grids, aligning well with global decarbonization goals and increasing the demand for LDES.

Sustainability Expert

ESS's collaboration with Indian Energy and the California Energy Commission marks a significant step in promoting energy sovereignty and sustainability for underrepresented communities. By focusing on microgrids for Native American Tribes and Department of Defense installations, this initiative champions both environmental goals and social equity.

From a sustainability perspective, iron flow batteries offer a cleaner alternative to lithium-ion batteries, reducing the environmental impact of energy storage. These systems are less reliant on rare earth materials and have a longer operational lifespan, contributing to a more sustainable energy infrastructure.

For retail investors, the alignment with environmental and social governance (ESG) criteria enhances ESS's position in responsible investing circles. This could attract ESG-focused funds and investors, providing additional liquidity and potentially boosting stock performance.

ESS’ non-lithium, long-duration energy storage technologies will enable energy resiliency and affordability for Native American Tribes and the Department of Defense

WILSONVILLE, Ore.--(BUSINESS WIRE)-- ESS Tech, Inc., (ESS) (NYSE: GWH), a leading manufacturer of long-duration energy storage (LDES) systems for commercial and utility-scale energy storage applications, today announced that it will participate in the Rapid Integration and Commercialization Unit (RICU) at Marine Corps Air Station Miramar. The RICU is a living laboratory for testing how leading LDES technologies can be integrated into utility-scale microgrid applications. The RICU is a venture between Indian Energy, the California Energy Commission (CEC), and the Department of Defense (DOD) to validate LDES technologies. Phase 2 of research at the RICU was funded by the CEC in May 2024 through a $4.85M agreement between the CEC and Indian Energy to demonstrate the diverse capabilities of LDES technologies. The partnership with Indian Energy lays the foundation for deployment on CEC grants and DOD installations.

Indian Energy, LLC is a Native American-owned microgrid developer and integrator with a history of helping Tribes and the Military establish energy independence. High energy costs and unreliable power are common challenges faced by sovereign territories. Microgrids, supported by safe and sustainable LDES, provide much-needed resilience, while also ensuring predictable and affordable energy pricing. Maada’oozh, LLC, a Native American-owned energy and environmental services company, is providing the procurement, logistics, and maintenance services for Indian Energy and has been working closely with ESS to integrate the ESS Battery Energy Storage System (BESS) into the RICU.

“ESS is leading battery storage technology with many different microgrid applications. The RICU will prove that this technology is ready for large-scale deployment on Tribal Nations and Military bases. We are excited about this partnership and look forward to deploying ESS on large-scale energy projects,” said Dr. Craig Reiter, General Manager and Chief Sustainability Officer at Maada’oozh.

“Iron flow technology will provide safe, sustainable long-duration energy storage to Native communities across California and the United States,” said Nicole Reiter, Vice President of Development at Indian Energy. “We are pleased to partner with ESS to deploy this critical technology and ultimately deliver energy sovereignty to Native American communities throughout North America.”

“We are pleased that the California Energy Commission has chosen this project to demonstrate the critical role that long-duration energy storage and iron flow technology will play in delivering energy security to remote communities,” said Eric Dresselhuys, CEO of ESS. “We look forward to working with Indian Energy and Marine Corps Air Station Miramar to deploy this project and continue to build the clean, secure energy future.”

“The CEC is proud to continue its close partnership with Indian Energy and the Marine Corps Air Station Miramar to advance long duration energy storage that can accelerate California's clean energy progress," said Jonah Steinbuck, Director of the R&D Division at CEC. “The Rapid Integration and Commercialization Unit is a uniquely capable facility for validating innovative long duration energy storage technologies and helping build the market confidence needed to scale these resources.”

Over the next six months, project partners will demonstrate optimal use cases in the California energy market including solar peak shifting and grid ancillary services, after which time it will be placed into commercial operation. The RICU testing facility in Miramar, California includes a microgrid connected to a solar array and features multiple connection points for energy storage, providing an ideal platform for this project.

LDES will be critical to achieve California’s ambitious decarbonization goal of 100% zero-emission electricity by 2045. According to a recent California Energy Commission report, LDES resources could grow up to 37 GW by 2045, supporting the integration of intermittent renewable energy and enabling a decarbonized, affordable and reliable grid. ESS iron flow technology is already deployed in California, with projects installed at the Sacramento Municipal Utility District (SMUD) and Burbank Water and Power (BWP), and additional deployments announced and underway both in California and worldwide.

About ESS

ESS Inc. (NYSE: GWH) is the leading manufacturer of long-duration iron flow energy storage solutions. ESS was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source iron, salt, and water, ESS iron flow technology enables energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess renewable energy. For more information visit www.essinc.com.

Forward-Looking Statements

This communication contains certain forward-looking statements regarding ESS and its management team’s expectations, hopes, beliefs, or intentions regarding the future. The words “estimate”, “expect”, “will” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Examples of forward-looking statements include, among others, statements regarding the status of ESS customer relationships and product deployments. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments. Many factors could cause actual future events to differ materially from such expectations, including, but not limited to, disruptions, or quality control problems in the Company’s manufacturing operations; as well as those risks and uncertainties set forth in the section entitled “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on May 8, 2024, and its other filings filed with the SEC. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240625835034/en/

ESS Contacts:

Investors:

Erik Bylin

Investors@essinc.com

Media:

Morgan Pitts

503.568.0755

morgan.pitts@essinc.com

Maada’oozh Contact:

Dr. Craig Reiter

714-448-7516

csreiter@maadaoozh.com

Indian Energy Contact:

Nicole Reiter

714-473-2878

ncreiter@indianenergy.com

Source: ESS, Inc.

FAQ

What is the purpose of ESS's partnership with Indian Energy and the California Energy Commission?

ESS is partnering with Indian Energy and the CEC to demonstrate utility-scale resilient microgrids using their non-lithium iron flow batteries, enhancing energy resilience and affordability for Native American Tribes and the Department of Defense.

What is the funding amount for the ESS and Indian Energy project?

The project is funded by a $4.85 million grant from the California Energy Commission.

Where will the ESS iron flow batteries be demonstrated?

The batteries will be demonstrated at Marine Corps Air Station Miramar as part of the Rapid Integration and Commercialization Unit (RICU).

What are the expected benefits of the ESS iron flow battery project?

The project aims to enhance energy resilience and affordability for Native American Tribes and the Department of Defense, and support California's 100% zero-emission electricity goal by 2045.

How long will the ESS and Indian Energy project take to demonstrate optimal use cases?

The project partners will demonstrate optimal use cases over the next six months.

What are the potential applications of ESS’s iron flow technology in California?

Potential applications include solar peak shifting and grid ancillary services, contributing to a decarbonized, affordable, and reliable grid.

How does the ESS iron flow battery technology contribute to California's decarbonization goals?

ESS’s iron flow technology supports California’s goal of 100% zero-emission electricity by 2045 by providing long-duration energy storage, essential for integrating renewable energy and ensuring grid reliability.