ESS Tech, Inc. (NYSE: GWH-WT)

ESS Tech Inc is a long duration energy storage company that focuses on iron flow battery technology. The firm was founded in 2011 and has developed a battery system that uses an electrolyte of mainly salt iron and water. Its design allows the battery to be charged and discharged for more than twenty thousand cycles with little loss of capacity according to lab tests. The company’s products are built to be safe non flammable and operable in temperatures ranging from minus fifteen degrees Celsius to fifty degrees Celsius. ESS Tech Inc aims to support the shift to zero carbon power by providing long duration storage that can improve grid reliability and enable greater use of renewable energy.

ESS Tech Inc generates revenue from the sale of its energy storage products and related services. Its main product offerings include the Energy Base system which is a modular gigawatt hour scale storage solution the Energy Warehouse and the Energy Center which are earlier generation products. The company also sells core power trains that consist of battery stacks electrolyte management and power electronics which customers can combine with tanks pumps and other balance of system parts to build custom installations. In addition ESS Tech Inc provides warranty maintenance monitoring and field service contracts for the systems it has deployed. Revenue is also derived from licensing of its proprietary technology and from engineering support provided to partners during project development.

ESS Tech Inc holds an early mover position in the long duration energy storage sector where its iron flow technology offers distinct advantages over conventional lithium ion batteries. The company’s chemistry relies on abundant inexpensive materials which reduces material cost and environmental impact while providing a non flammable safety profile. Its batteries are designed to deliver over twenty thousand cycles which translates to a long service life and low levelized cost of storage for applications that need more than eight hours of duration. Compared to lithium ion systems the ESS solution becomes more cost effective as the required storage duration increases because the energy capacity can be expanded by adding electrolyte at low marginal cost. The firm competes with large lithium ion producers such as Contemporary Amperex Technology Co Limited LG Chem Ltd Samsung Electronics Co Ltd Sungrow Power Supply Co Ltd and Tesla Inc. It also faces competition from other storage technologies including vanadium zinc bromine batteries sodium sulfur batteries compressed air hydrogen fuel cells and pumped storage hydro. ESS Tech Inc differentiates itself through its patented Proton Pump which controls hydroxide formation and stabilizes electrolyte pH and through its flexible architecture that separates power rating from energy capacity allowing customers to tailor each installation to specific use cases.

ESS Tech Inc serves utilities independent power producers and commercial and industrial end users. Behind the meter customers include data centers microgrids critical facilities and industrial sites that seek to lower electricity costs integrate renewable generation and improve energy resilience. Front of the meter customers are mainly utilities and independent power producers that deploy the systems for grid balancing peak shaving and firming of renewable output. The company has completed pilot projects with specific customers such as the Sacramento Municipal Utility District and Energy Storage Industries Asia Pacific which have purchased its Energy Warehouse and Energy Base systems for testing and early deployment.