ESS Expands Deployment Footprint in California, Commissions New Project and Advances Energy Center Product Line
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The commissioning of an Energy Warehouse (EW) system by ESS Tech, Inc. at a U.S. Army Corps of Engineers site and the delivery of EW systems to utilities in California signifies a strategic expansion in the deployment of long-duration energy storage (LDES) systems. The integration of LDES, particularly iron flow battery technology, into tactical microgrids represents a growing recognition of the need for energy solutions that can provide reliable, renewable energy storage. This is particularly relevant as the global energy sector shifts towards sustainability and resilience in power generation and distribution.
ESS Tech's progress in scaling production and the potential $1B project pipeline indicates a robust demand for LDES solutions. The ability of these systems to be paired with renewable energy sources, like the on-site solar array at Burbank Water and Power's EcoCampus, showcases the potential for LDES to facilitate the transition to a fully renewable grid. For stakeholders, this suggests a promising avenue for growth, especially in markets with a high penetration of renewable energy sources where energy storage is critical to ensure grid stability.
In the context of business impact, the deployment of EW systems by ESS Tech may have a positive influence on their financial performance, given the increasing demand for renewable energy integration. Additionally, the demonstration of LDES in tactical and humanitarian settings could open new markets for ESS Tech, further diversifying its revenue streams.
ESS Tech's announcement indicates a significant step towards capitalizing on its $1B potential project pipeline. The commissioning of projects and delivery of multiple units are concrete indicators of execution capability, which is a critical factor for investor confidence. The association with the U.S. Army Corps of Engineers and utilities like Burbank Water and Power and the Turlock Irrigation District also adds credibility to ESS Tech's technology and its market acceptance.
From a financial perspective, the successful deployment and operation of these systems could lead to increased revenue streams and potentially improve profit margins through economies of scale in production. The market's response to these developments could be reflected in ESS Tech's stock performance, as successful deployments may lead to more contracts and partnerships, thereby enhancing the company's market valuation.
However, investors should also consider the capital-intensive nature of the energy storage industry and the potential risks associated with the adoption of new technologies. ESS Tech's long-term financial health will depend on its ability to manage costs, navigate competitive pressures and maintain technological leadership in LDES.
The deployment of iron flow battery technology in both military and civilian settings highlights the versatility and growing importance of LDES in the renewable energy landscape. Iron flow batteries offer distinct advantages over other storage technologies, such as longer cycle life and lower environmental impact due to the use of non-toxic materials. Their ability to store energy for extended periods makes them well-suited for integration with intermittent renewable energy sources.
The operational demonstration of this technology at a tactical microgrid and its pairing with a solar array on a utility's EcoCampus are practical examples of how LDES can address the challenge of energy intermittency. This is crucial for the reliability of renewable energy systems, as it ensures a consistent energy supply even when solar or wind resources are not available.
The adoption of LDES by entities such as the U.S. Army Corps of Engineers also indicates a strategic approach towards energy independence and security. For the renewable energy industry, ESS Tech's advancements could spur further innovation and investment in LDES technologies, potentially leading to more efficient and cost-effective energy storage solutions.
Commissioning of project in
Earlier this week, the company announced the commissioning of an Energy Warehouse (EW) system at the Contingency Base Integration Training Evaluation Center (CBITEC) operated by the
This announcement followed deliveries of EW systems to Burbank Water and Power (BWP) and the Turlock Irrigation District (TID), further expanding the company’s deployment footprint in
The ESS system delivered to BWP will be paired with an on-site solar array and located on the utility’s EcoCampus where ESS technology will demonstrate the critical role of LDES in a fully renewable grid. The partnership with BWP was first announced in November 2022.
At TID, the EW will support Project Nexus and be paired with a proof of concept of solar panels over irrigation canals in
These deliveries followed the September startup of six Energy Warehouse systems delivered to the Sacramento Municipal Utility District (SMUD). These EW systems were the first to be delivered under a framework agreement first announced in 2022. Under that agreement, ESS will deliver up to 200 megawatts (MW) / 2 gigawatt-hours (GWh) of iron flow LDES systems to SMUD. Once fully operational and paired with renewable energy, 2 GWh of iron flow battery systems are expected to enable the elimination of approximately 284,000 metric tons of CO2 emissions per year from SMUD’s system.
Finally, at the end of 2023, ESS successfully “lifted” its first Energy Center (EC), a key milestone in the manufacturing process. The EC is a utility-scale, front-of-the-meter long-duration energy storage product which provides up to eight hours of energy storage with a flexible, scalable platform to meet the LDES needs of utilities worldwide. This inaugural EC system will be commissioned and delivered to Portland General Electric later this year.
“With these new deployments and progress on our utility-scale Energy Center, ESS is entering 2024 with strong momentum,” said Eric Dresselhuys, ESS CEO. “Over the next year, we will continue to scale our manufacturing and deliver the long-duration energy storage solutions needed by utility and industrial customers worldwide to accelerate the clean energy transition.”
Recent product development and deployments build on major partnerships announced in 2023 with a potential
About ESS
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.
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 Company’s ability to execute on orders, the Company’s relationships with customers, and the status of ESS product development and manufacturing. 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 nine months ended September 30, 2023, filed with the Securities and Exchange Commission (the “SEC”) on November 14, 2023, 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.
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Source: ESS, Inc.
