Iron Flow Battery

Energy Storage for Remote Grids and Mining Operations

Hugh McDermottSenior Vice President

December 2018

Company Overview

Company Technology ProductManufacturing

� Founded in2011

� HQinWilsonville, OR

� KeyInvestors:‒BASF‒Presidio Partners,‒Pangaea‒CycleCapital

� Worldwide salesthroughmultiplesaleschannels

� Ironflowbatterytechnology

� DevelopedinpartnershipwithUSDOE(ARPA-E)

� IPprotected(30+patentfilings)

� 5+yearsofresearch,productdevelopmentandfieldtesting

� 100,000ft2 facilityinWilsonville, OR

� Scalingto1GWh/year

� Efficient&scalablemanufacturing

� Lowautomationcapitalcostsallowsforaflexible, distributedmanufacturingmodel

� Unlimitedcyclingcapability

� Doesnotdegradewithuse

� Safest,mostsustainablechemistryonthemarket

� 25yeardesign life

� Secondgenerationtechnology.

2ESSTech,Inc.

Iron Flow Battery – a Workhorse

3ESSTech,Inc.

50%

70%

90%

110%

0 2,000 4,000 6,000 8,000 10,000

Capacity(%)

Cycles

ESSIFBCyclePerformanceShallow Cycling (100%<-->75%)

ESSData Li-IonCells50%

70%

90%

110%

0 2,000 4,000 6,000 8,000 10,000

Capacity(%)

Cycles

ESSIFBCyclePerformanceDeepCycling(100%<-->25%)

ESSData Li-IonCells

Nohazardouschemicals,nofireriskUSDOEtestedtoover4decadesofdaily

cyclingwithnolossofperformance

Iron Salt

Energy WarehouseTM Platform“Plug in and add water”

EnergyWarehouseTM

� Shipanywhere,fullycontainerizedbatterywith400kWhstorage;50and100kWpowerinterfaceoptions

� Turnkeydesign includesinverter,PCS,BMS,controlsandcommunicationsinterface

� -5Cto50CoperatingrangewithnoneedforAC� Well-suitedformicrogridsandcommercial/industrialuse� Longassetlife,canlastdecadeswithnodegradation

StackableModularDesign

4

Easytopermit,installandcommissionLongassetlife=re-deploywhenneedschange

ESSTech,Inc.

Energy CenterTM PlatformUtility-scale solution

Highlights� Customengineereddesigntomeetspecificpowerandstoragerequirements

� 250kWmodularpowertrainscalabledesign� OperatingRange:Upto125FambientwithnoACrequired

� Lowauxloadrequirements:~2%

� EnergyDensity:15MW/90MWh/acre

� Capex:mid$200s/kWh

� LCOS:<$0.05/kWh

5

ScalableDesignfrom5MWto1GW

ESSTech,Inc.

LTO NMC ZnFlow VRBNaSPb-AcidMoreSafe

32

2W

32

1COR

30

2W

20

0cor

30

2cor

20

0cor

Less Safe

Safety

32

2W

ESS

Sustainable & Safe

6

Safest,mostsustainablebatteryavailableNofire,chemicalorexplosiverisktopersonnelNohiddenliabilities,nosoftcostsforhazmatcomplianceandincidenceresponse

ESSTech,Inc.

$0.23 $0.22 $0.22

$0.18

$0.12 $0.12$0.10 $0.10

$0.09

$0.05

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

Aquion Primus Redflow EOS ViZn LTO NMC(Tesla)

LFP(BYD)

VRB ESS

LevelizedCostAnalysis- 2020CapExCost

7

Competitive Comparison

LCOScalculatedforrenewableintegration:� 600MWhenergystoragefacility� 4 hours ofusablestorage,1cycleperday� 25yearsofoperation

Li-ionChemistries

$0.037 $0.03

� 2cycles/day@4hrs� 2cycles/day@5hrs

IncreasedCyclesandLongerDurationIncreasesValue

LCOS($/kWh)

ESSTech,Inc.

Summary

2/5/2018 ESSTech,Inc.Confidential 8

ESSINSTALLATIONS

StoneEdgeFarmsZeroNetEnergyMicrogrid

System: 60kWhUseCase: MicrogridCommissioned:2015Location: SonomaCounty,CA

ProjectOverviewZeronetenergymicrogridproject. StoneEdgeWinery,basedinSonoma,CApromotessustainablepractices(energy,agriculture).Thewineryhasdevelopedamulti-assetmicro-gridsystemthathasenabledittoachieveazeronetenergy operation.ESSEnergyWarehouse(EW)storageproductwasaddedearlyinthemicrogriddevelopment tostoresolarenergygeneratedonsite.Thisstoredenergy isinturnusedtopowerirrigationpumpingaswellasahydrogengenerator thatcreatesfuelusedintransportvehiclesandanonsitefuelcell.

InSeptember 2017,Sonomacountyexperienceddevastatingfireswhichcausedwidespreadpowerblackouts.StoneEdgewasabletocontinuedailyoperations.Duetothesuccessofthemicrogridduringtheblackouts,StoneEdgeisupgradingtheESSstoragetothenextgeneration toprovideincreasedpowerandcapacity(50kW/400kWh)

USArmyCorps

System: 225kWhUseCase: Off-gridCommissioned: 2016Location: FortLeonard-Wood,MO

ProjectOverviewTheUSArmyCorpsutilizestheEWforintegrationwithdieselgenerators inconfigurationsintendedtosimulateforwardoperatingbaseconditions.TheEWgridformsandfollowsthebase’sload,limiting thedieselgenerator useforenergystoragecharging.

Theuseoflong-durationbatterystoragetooptimize/reducedieselgensetoperationhasshownbenefitsof30-40%fuelsavings.TheEWalsoprovidesthebasewithimprovedgridresiliencywithride-throughcapabilityandmicro-gridoperationduringgriddisturbancesandutilityoutages. AdditionalbenefitsattributedtotheEWincludeeaseindeployment,ability toredeployandcommissionasneedschangeandabilitytooperateininhospitableenvironmentswithoutneedforauxiliaryequipmentorresources.

ESSTech,Inc.Confidential

ESSINSTALLATIONS

UCSDMicrogrid

System: 400kWhUseCase: MicrogridCommissioned:2017Location: UCSD,CA

ProjectOverviewTheEWisbeingpilotedundergrantfundingfromtheUSgovernmentandintendedtoenable researcherstoindependentlytestthebatteryacrossavarietyofdifferentoperatingschemestosimulatebothbehindthemeterandinfrontofthemeterstorageapplications.TheEWhasbeendeployedwithinoneofthemostadvancedanddiversemicro-gridsinNorthAmericaandwillbeco-testedbytheUCSDandPXiSE EnergySolutions,theunregulatedbusinessarmofSempraEnergy.

Akey focusoftheresearchandtestcaseswillbetodemonstratetheuseoftheEWtoprovidemultipledifferentbenefits,includingrevenuegeneratingservicesfromasingleasset.These testswillincluderesponse-time,frequencyregulation,anddispatchablegeneration testingandwillvalidateability todiscretelyprovidemultiple revenuegeneratingservices inCAISOmarket.

DNV-GL

System: 400kWhUseCase: RenewableIntegrationCommissioned:2017Location: Lubbock,Texas

ProjectOverviewDNV-GLwillutilizetheEWforbulkenergyshiftingwiththewindturbinesandsolarPVon-site.ERCOT, theISOresponsiblefortheTexasenergygrid,hasanoversaturationofwindprojectsinrelation totheircurrenttransmissioninfrastructure.Thishasbeenamajorpainpointforrenewable energydevelopersandindependentpowerproducers,astheirprojectsarefrequentlycurtailedandexperiencehighbasis-riskfromtransmissioncongestion;negativelyaffectingprojectrevenues.Bulkenergyshiftingwillallowdevelopers totakeadvantageofpowerpricingandenergydemandnottypicallyservedbydailywindgenerationprofiles,helpingtoalleviate theeconomicburdenexperienced fromthecurrentERCOTconstraintsaforementioned.

ESSTech,Inc.Confidential

ESSPROJECTSUNDERCONSTRUCTION

BigDutchmanInternationalGmbH

System: 400kWh;8hours storageUseCase: Resiliency|PV+StorageCommissioning: Q42019Location: Germany

ProjectOverviewBDprovidesfeedingandhousingsystemsforpoultryandpigfarmingglobally.Servicesandofferingsincludingenergysolutionsforenergysavingsandcriticalservicesbackup.BDisevaluatingtheESSenergystoragetechnologyasalow-costandinherentlysafesystemforintegrationwithsolarsystemstoofferasacombinedsystemtoitscustomersworldwide.UsecasesincludereducingoreliminatingdieselgeneratorbackupatpoultryfacilitiesandreducingenergycostsusingPV+storagesolutionsfortheircustomers.

BigDutchmanInternationalGmbH,throughitssubsidiaries,manufacturesfeedingsystemsandhousingequipmentforpigandpoultrymanagement.Itoffersalternativeeggproductionequipment,colonysystems,poultrycages,equipmentforpoultrygrowing,breedermanagementsystems,poultryandpigclimatecontrolsystems,exhaustairtreatmentsystems,residuetreatmentsystems,biogasplants,andmixedfeedproductionequipment.ThecompanyalsoprovidesBigFarmNet,asystemthatallowsuserstocontrol,monitor,andmanagevariouscomputersandcontrollersontheirfarmfromacentrallocation.ItoffersitsproductsthroughsalesrepresentativesinGermanyandinternationally.Thecompanywasfoundedin1938andisbasedinVechta-Calveslage,Germany.BigDutchmanInternationalGmbHoperatesasasubsidiaryofBigDutchmanAG.

ESSTech,Inc.Confidential

ESSPROJECTSUNDERCONSTRUCTION

MarineCorpsBaseCampPendleton,theCorps'largestWestCoastexpeditionarytrainingfacility,encompassesmorethan125,000acresofSouthernCaliforniaterrain.CampPendletonisoneoftheDepartmentofDefense'sbusiestinstallationsandoffersabroadspectrumoftrainingfacilitiesformanyactiveandreserveMarine,ArmyandNavyunits,aswellasnational,stateandlocalagencies.

Followingrecruitgraduation,enlistedMarinesreceivebasicinfantrytrainingattheSchoolofInfantry-WestbeforeassignmenttootherunitsthroughouttheCorps.Morethan38,000militaryfamilymembersoccupybasehousingcomplexes.However,withadaytimepopulationof70,000militaryandcivilianpersonnel,theMarines,SailorsandtheirfamiliesrelyonthesurroundingcommunitiesforretailgoodsandservicesnotavailableonBase.

USMarineCorpsCampPendleton

System: 400kWh;8hoursstorageUseCase: Microgrid|PV+StorageCommissioning: Q42018Location: CampPendleton,CA

ProjectOverviewESSisprovidingenergystoragesystemthatwillbeintegratedintoadiversemicrogridinstallationfeaturingPV,CPV,dieselgenset,flywheelsandgeothermalheatpumps.DubbedtheFractalGrid Demonstration,thismicrogridwillprovidemultiplebenefitstotheMarineCorpsincludingresilientback-upcapabilitytocriticalITinfrastructure,electricitysavingsthroughdemandchargemanagementandTOUarbitrage,andfullislandingcapabilities.TheESSbatterywillbeintegratedwiththeCleanSparkmicrogridcontrollerwhichwillprovidetheoverallmicrogridoptimizationandcontrol.

ESSTech,Inc.Confidential

ESSPROJECTSUNDERCONSTRUCTION

BASFGlobalHeadquarters

System: 400kWh,8HoursStorageUseCase: R&DPilotCommission: Q12019Location: BASFHeadquarters,Germany

ProjectOverviewBASF,theleadinvestorinESS’sSeriesBfundinground,purchasedtheEnergyWarehouse50kW/400kWhforR&DtestingattheirglobalheadquarterinGermany.Theunitwillbeusedtotestamultitudeofusecases,bothbehindandinfrontofthemeter.Additionally,BASFandESSrecentlyenteredintoaJDAforglobalsalesandtechnologicalimprovementstotheironflowbattery.Thefuturetestingconductedonunitwillhelpfurtherimprovethepowerdensityoftheelectrolyte,roundtripefficiency,andenergycapacityoffutureESSproductofferings.

BASFistheglobalchemicalindustryleader,ranked126ontheFortuneGlobal500.Theyspecializeinfivesegments:chemicals,performanceproducts,functionalmaterialsandsolutions,agriculturalsolutionsandoil&gas.BASFemployeesmorethan115,000employeesworldwideandgenerated$64.5billioninrevenue2017.

ESSTech,Inc.Confidential

ESSPROJECTSUNDERCONSTRUCTION

Pacto GDBrazil

System: 400kWh,8HourStorageUseCase: PV+StorageCommission: Q32019Location: Goiás,Brazil

ProjectOverviewESShasbeenawardeda$1.3MgrantfromtheUSTDAtodesignandinstallthefirstEnergyWarehouse50kW/400kWhunitinLatinAmericaforPacto GD,aBraziliansolardeveloper.TheEnergyWarehousewillbeutilizedwitha100kWPVarrayforbulkenergy-shifting.Inaddition,theprojectwillenablethelocalendcustomer,toshedtheirrelianceontheuseofdieselgeneratorsduringpeakhours.Thesystemwillprovidehealth,safetyandnoisereductionbenefits,financialsavingsinfuelandmaintenance,andreduceenergycostsduringpeakdemand.

Pacto Energia isawhollyownedsubsidiaryof3FCapital,specializinginthedevelopmentofcommercialhydro,solar,andwindpowergeneration.Inits17+yearsinoperation,Pacto Energia hasbuiltarenewableportfolioofmorethan4gigawattsintheLatinAmericamarket.PactoEnergiapresentssolutionstoreduceconsumptionandcostswithelectricityforitscustomers.

Appendix:RecommendationsForConsideringFlowBattery

15ESSTech,Inc.Confidential

CurrentMacroMarketCharacteristics:– Theenergystoragespaceisdominatedbyshortduration, lithium-Ion batteries.– GridOperators,Utilities,industrial&Commercialcustomersknowhowtoevaluatethecharacteristicsofthesebatteries.– LongerDurationStorageisquicklybecomingaRequirement– Longerduration, IronFlowBatterieshavecharacteristicsthatarenotnormallyevaluatedandtheirbenefitsareoften

overlooked.

RequiredEvaluationParametersforTechnologyAgnosticDecisions:– Unlimitedcycling(comparedwithsinglecycle/daylithium-ion)– ZeroCapacityFaderegardlessofthenumberofcycles/day;– Extendedoperatingtemperatures(25-125degreesF)– ZeroCapacityFadeduring“idleconditions”– LowestLevelizedCostofServicewithmultiplecycles/day– Abilitytoprovide4,6,8,or10hoursstoragedurationonasinglecycle– NoHazardousChemicals;NoHazardousChemicalPlanorDisposalPlanrequired;Noshippingrestrictions– NoFireRisk(batteryisa“fireextinguisher);SubstantiallyReducedRisksofOperatinginSubstationsorinfirehazard

areas.– VirtuallyNoPermittingRisks– Nopreciousmetalsorhardtosourcematerialsandnoassociatedpriceor supplydisruptionrisk

Iron Flow BatteryEvaluation Parameters