Transcript Slide 1

Employment Impact
Assessment: Pennsylvania
confidential | March 2012
Eos: Energy Storage Solutions Provider
Providing the utility and transportation industries with
safe, reliable, low-cost energy and power storage
Mission:
Eos Aurora
Grid Product:
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1MW/6MWH energy storage system for the electric grid (1 MW optimal power for 6 hours, with surge capability)
Safe, non-toxic, stable, reliable, low capital and operating cost
Battery price for major orders: $1000/kW, $160/kWh
30 year life, 10,000 full cycles*
First ever long-life rechargeable zinc-air battery
Scaling up battery prototypes (17kW/100 kWh units) for initial manufacturing in 2012 and delivery of MW scale
systems to first customers in 2013
Vehicle Product:
• 50kW/100kWh dual zinc-air and long-life lead-acid capable of >340 mile range for $12,000
Value
Proposition:
• Cost competitive with incumbent technology: gas-fired turbines for additional generation capacity and gasoline
powered vehicles
Customers:
• Customer LOIs: >100 MW of product over 5 years
• Eos Genesis Program for utility early adopters and strategic auto industry partners
* One full cycle includes full charge, discharge and additional
frequency regulation over the course of one full day.
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The Challenge: Adapting to the Future Grid
• Energy demand growing — projected to grow globally by 36% from 2010 to 2035, including energy
efficiency increases 1
• Aging generating capacity needs to be replaced — by 2025, most coal-fired plants and by 2030,
most nuclear plants, will need to be rebuilt or retired 2
• Need for new transmission and distribution — $180B of planned US transmission projects 3
• Infrastructure driven by peak demand — 25% of distribution and 10% of generation and
transmission assets (worth multi hundreds B$) used less than 400 hours per year 4
• Growing renewable generation that is intermittent leads to grid instability and—in some cases—
curtailment or negative pricing 5
1) IEA, 2010. 2) NERC, 2010. 3) Quanta, 2010. 4) EPRI, 2010. 5) CAISO, 2007.
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The Solution: Energy Storage
Energy Storage Usage Can:
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Improve efficiency and profit of existing generating assets
Defer costly upgrades to transmission and distribution infrastructure
Avoid additional peak generating capacity investments
Increase adoption and profitability of renewable energy
Electricity is the
world’s only
supply chain with
NO storage
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Energy Storage Benefits
Grid/Utility Benefits
End User Benefits
• Electricity peak shifting (arbitrage)
• Supply of flexible, distributable capacity
• Ancillary services
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Load following
Frequency regulation
Voltage support
Time of Use (TOU) Energy management (arbitrage)
Demand charge reduction
Electricity supply reliability improvement (backup)
Electricity supply quality improvement
• Transmission congestion relief / upgrade deferral
• Renewable energy integration support via supply
firming and time shift
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Global Market: $500B
BCG:
$400B1
Piper Jaffray:
$600B2
Worldwide, the energy storage market is
forecasted to grow over the next five
years at a CAGR of:
40-55%3
Lux Research:
$64B/year 4
1) BCG, 2010, estimate 280 Euros. 2) PiperJaffray, “Energy Storage”, February 2009. 3)
http://www.marketwire.com/press-release/Smart-Grid-Energy-Storage-Market-to-Grow-397Annually-Through-2013-1329898.htm 4) http://www.evworld.com/news.cfm?newsid=18336
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Present Value of Energy
Storage Application
High Capital Cost Limitation
US Market Sizes of Different Energy Storage
Applications based on the Estimated Present
Value of their Benefits
EPRI, Electricity Energy Storage Technology Options, 2010.
At a Li-ion capital cost in
the >$1000/kWh range
there are only a few GW
of demand
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Present Value of Energy
Storage Application
Eos Low Capital Cost
Opens Markets
US Market Sizes of Different Energy Storage
Applications based on the Estimated Present
Value of their Benefits
EPRI, Electricity Energy Storage Technology Options, 2010.
Market opens up for
solutions with Eos’ capital
cost of $160/kWh
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Eos Aurora Meets Key Requirements
Eos Aurora 1000|6000
Low Capital Cost
$1000/kW initial price; $160/kWh
Large volume of energy
and power
1 MW/6 MWh standard system size (made of 17KW/100KWh building blocks)
Long life-cycle
Designed for > 10,000 true cycles* and 30 calendar years of operation
Quick response time
Response time: Immediate
Safe to locate in urban
load centers
Non toxic, environmentally benign and stable
Instantly deployable
Delivered in a standard ISO 40’ shipping container
Low operating and
maintenance costs
No periodic replacement of components (e.g., membranes, cells, battery packs) required
* One full cycle includes full charge, discharge and additional
frequency regulation over the course of one full day.
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Competition
• Peak load reduction via energy efficiency
and demand response
• Capacity additions from gas peaking plants
• New transmission and distribution spending
• Other energy storage providers
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Eos Superior to Gas Peaking Plants
Eos utility scale energy
storage systems can be
cheaper than gas peaking
plants when compared
at realistic operating
conditions
* Chart Notes: Levelized Cost of Energy included cap. fix, and var. costs. Gas peaking cost estimate
from Lazard, 2009, midpoint of est. range. Assump: 150MW facility, Capital cost $1,125/MW, Heat
rate 10.5 MMBtu/MWh, Cap. factor 10%, Facility Life 35 years, Construction time 25 months. Eos:
2MW plant, 25% cap. factor (6hrs of energy production), Round-trip efficiency of 75%, Cap. cost for
entire system with Eos battery $1.7/watt, O&M costs: $20,000/year for a 2MW/12MWh operating
costs, Facility Life 30 years.
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Current World Electric Energy Storage Capacity
Compressed Air Energy Storage
440 MW
Sodium-Sulfur Battery
316 MW
Pumped
Hydro
127,000 MWel
Over 99% of
total storage
capacity
Lead-Acid Battery
~35 MW
Nickel-Cadmium Battery
27 MW
Flywheels
<25 MW
Lithium-Ion Battery
~20 MW
Today’s electricity
energy storage is
almost exclusively
pumped hydro
Redox-Flow Battery
<3 MW
Fraunhofer Institute. EPRI, Electricity Energy Storage Technology Options, 2010.
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Eos Energy Storage vs. Competitors
 = Good
 = Medium
 = Poor
Eos
Low capital cost/kWh
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Large volume of energy storage
capacity
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Long life (high # of life-cycles)
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Quick response time (milliseconds)
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Safe (non-toxic, non combustible)
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Flexible to locate (in cities)
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Low O&M costs
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In commercial production
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GST:
Low
Energyand
andPower
Power
Eos:
LowCost
Costper
per Unit
Unit Energy
Eos offers the lowest
capital cost solution for
energy storage for
utility transmission
and distribution
support
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Levelized Cost of Peak Energy
For renewable
integration and load
shifting applications,
Eos’ levelized energy
cost is among the
lowest along with
pumped hydro and
combined cycle gas
turbines
* Non-Eos data source: EPRI, Electricity Energy Storage Technology Options, 2010.
Natural gas fuel cost range: $6.5 -8/MMBtu. Levelized cost of energy includes cap.
fix, and var. costs. Gas peaking cost estimate from Lazard, 2009, midpoint of est.
range; assumes: 150MW facility, Capital cost $1,125/MW, Heat rate 10.5
MMBtu/MWh, Cap. factor 10%, Facility Life 35 years, Construction time 25 months.
Eos: 2MW plant, 25% cap. factor (6hrs of energy production), Roundtrip efficiency of
75%, Cap. cost for entire system with Eos battery $1.7/watt, O&M costs:
$20,000/year for a 2MW/12MWh operating costs, Facility Life 30 years.
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EV Demand: The Context
• Demand drivers for hybrid, plug-in hybrid and electric vehicles:
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Oil price volatility
Energy security
Climate change
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EV Demand: The Context
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Transportation accounts for 2/3 of US oil consumption
The Math (Mbd)
US oil consumption: 18.7
(of which vehicles: 10.7)
Domestic production: 9
Widespread adoption
of EVs could reduce or
eliminate US oil
import dependence
US Transportation Databook, 2011
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Global EV Battery Opportunity: > $33B/yr.
Global vehicle focused energy storage market estimate:
• 2016: $16B
• 2020: $33B
Market elasticity high for
low cost (Eos) EVs:
Would you buy an EV if it
had the same range and
price as an ICE vehicle?
Lazard Capital Markets, Shrestha, Sanjay, Martin, Sarah and Zhang,
Jenny (Lazard Capital Markets), “Alternative Energy & Infrastructure”,
March 5, 2010
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EV Challenges
• High battery cost
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$1,000 to $1,200/kWh sale price to OEM’s today
$250/kWh goal from US Advanced Battery Consortium
• Driving range too short
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40-190 miles today vs goal of 350 miles
• Charge time too long
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7 hours to charge 24kWh Nissan Leaf
• Safety
BCG, Batteries for Electric Cars, 2010.
http://www.nissanusa.com/leaf-electric-car/faq/list/charging#/leaf-electric-car/faq/list/charging
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Eos’ Electric Vehicle Strategic Partnerships
Potential EV Configurations:
Eos Aurora zinc-air battery
Eos Vista zinc-air flow battery
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>300 Mile driving range
Same cost as ICE vehicle
$0.02/mile fuel cost
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Refuelable in addition
to rechargeable
Lower cost per kWh
"These are magical distances. To buy a car that will cost $20,000 to
$25,000 without a subsidy where you can go 350 miles is our goal."
- US Energy Secretary, Steven Chu
* http://www.bcg.com/documents/file36615.pdf, pg. 5.
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Other Eos Technologies Under Development
Eos Vista Zinc-Air Flow Battery
Eos Innovation:
• Based on Eos zinc-air technology
• Allows decoupling of the power and energy of the battery for more flexible
configuration and lower cost per kWh
• As battery discharges, the used electrolyte is stored and replaced, and more
zinc is added, allowing for battery operation to continue
Addressable
Markets:
• Electric vehicles
• Stationary power
Status:
• Further design development required
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EVs: Battery Cost vs ICEs
Eos Goal:
100-200 $/kWh
Morgan Stanley, 2011
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Gasoline Car vs Li-ion EV vs Eos EV
Toyota Camry
EV with Li-ion
(Nissan Leaf)*
EV with Eos
Aurora Zinc-Air
Battery
EV with Eos
Vista Flow Battery
Capital Cost of Car
$25,000
$33,000
$25,000
$25,000
Propulsion System
Internal Combustion
Engine
24 kwh Li-ion battery
80 kw motor
Eos Zinc-Air battery,
Eos lead acid battery
Eos Zinc-Air Flow
battery, Eos lead
acid battery
Range (miles)
400
75-100
340
400
Refueling Time
3 mins
5-7 hrs with
220-240V charger
6 hours
3 mins
.20
.03
.02
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179 hp
107 hp
175 hp
175 hp
Cost of fuel/mile at
$4/gal gas
HP (peak)
*http://www.nissanusa.com/ev/media/pdf/specs/FeaturesAndSpecs.pdf
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Innovation: First Ever Rechargeable
Long-Life Zinc-Air Battery
1) Started with a safe, robust, well developed technology:
 Widely used today for hearing aids, medical equipment
 Electrolyte (ZnCl2): safe, widely used in toothpaste
(Triclosan)
2) Innovated to resolve historic challenges that
prevented rechargeability
3) Designed product for ease of scale manufacturing
at competitive cost
Eos energy storage: “low-cost, rugged, long-life, non-toxic
and compact design for stationary and mobile applications.”
- KEMA Energy Consultants
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What is a Zinc-Air Battery?
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Widely used today for high-energy density, low-cost, single use applications
• e.g. hearing aids
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Based on similar chemistry used in standard alkaline AA and AAA batteries (Zn/MnO2)
Replaces manganese dioxide (MnO2 ) with thin air electrode, saving space and cost
• Air electrode contains carbon and catalysts, which absorb and catalyze oxygen to allow it to react with zinc,
eliminating need to contain cathode reactant in battery so most of battery can be filled by zinc anode,
saving space
Zinc or Metal Air provides highest potential energy density for batteries
Energizer, Zinc Air Prismatic Handbook
confidential
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Zinc-Air Advantages
• High energy density
• Materials are safe, low cost, locally sourced,
readily available
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Zinc:
• Cheap: One of the world’s most plentiful
and inexpensive metals
• Non toxic
• Locally available - three of top five zinc
producers: US, Canada and Australia
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Air
• Inexpensive to manufacture
• Environmentally friendly
Vs
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Other batteries need to hold a large
amount of cathode reactant, equivalent to
pulling a trailer full of gasoline oxidizer
(air) behind your car. Zinc-air batteries
have higher energy density since they—
like gasoline engines—use ambient air as a
reactant, and therefore don’t need to carry
it in the cell, increasing energy density
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Expert Opinions of Eos
“Metal air batteries…
have the potential
to be lower-power,
long-duration energy
storage devices…”
- SCE, 2011*
“Eos has developed a number
of improvements for the
conventional zinc-air battery
to become a viable secondary
battery.”
- KEMA Energy Consultants
• SCE, Rittershausen J and McKonah,
Moving Energy Storage from Concept to Reality, 2011.
“Metal-air batteries contain
high energy metals and
literally breathe oxygen
from the air, giving them
the ability to store extreme
amounts of energy.”
- US Energy Secretary,
Steven Chu
“(Eos’) novel nonflow design offers
elegant approach to
management of
prior zinc-air
issues.”
- Electric Power
Research Institute
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IP Protection
• Obtained and applied for multi-layer patent protection on key intellectual
property
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Cell configuration and architecture
Cathode design, materials and catalysts
Electrolyte and additives
System configuration and electrolyte system
• Three major patents registered and pending in the US and abroad, and
will be applying for at least one more
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Over 400 MW
of Planned Development
• Formed JV partnership with Plaza
Construction and Fisher Brothers to codevelop 400 MW by 2020
• JV will build energy storage as
merchant power plants both in load
centers (behind the meter) and directly
on the grid
confidential
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Potential Applications for Eos’ Storage
Solution
Grid/Utility Benefits
End User Benefits
• Electricity peak shifting (arbitrage)
• Supply of flexible, distributable capacity
• Ancillary services
•
•
•
•
✴
✴
✴
Load following
Frequency regulation
Voltage support
• Transmission congestion relief / upgrade deferral
• Renewable energy integration support via supply
firming and time shift
Time of Use (TOU) Energy management (arbitrage)
Demand charge reduction
Electricity supply reliability improvement (backup)
Electricity supply quality improvement
a variety of overlapping
revenue streams
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Business Timeline
MARKET/TECH
2011
R&D
2012
2013
2014
2015
Q1 Manufacture Prototype
Pilot tests
Eos Aurora
Grid Storage
Scale Manuf.
• Zn-Air
Marketing and Sales
JV Pre-Dev.
JV Site Prep
JV Deployment
• Manufacturing commencing in Q1 2013
• Scale manufacturing in 2013 / 2014
• Joint venture (JV) for project development launching in Q4 2011
confidential
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Eos Energy Storage
Investment and Job Creation
Immediate
• Establishment of corporate headquarters, laboratory and engineering center
• Direct jobs: 42
• Average salary: $80,000
• Investment: $10M
2013-2020
• Establishment of three production facilities each with a 300MW/year capacity
• Direct jobs: 140/facility = 420 full time positions
• Average salary: $45,000
• Investment: $28M/facility = $84M
• Indirect job creation:
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Full time positions: 682
Total Indirect Labor $ Generated: $33,548,745
confidential
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Development Joint Venture
Investment and Job Creation
Immediate:
• Establishment of corporate headquarters
• Direct jobs: 25
• Average salary: $100,000
2013-2020
• Establishment of 400MW of energy storage facilities
• Direct jobs: 366
• Average salary: $80,000
• Investment: $1.2 Billion
• Indirect job creation: multiplier typical for NJ construction industry
confidential
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Summary
• The Eos Aurora will be a safe, reliable, non-toxic, non-combustible, low cost
zinc-air energy storage system for the electric grid that can be sold for
$1000/kW and $160/kWh, rechargeable over 10,000 cycles (30 years)
• Superior value proposition to incumbent technology: gas-fired turbines for
additional generation capacity and gasoline engines for transportation
• Scaling up battery prototypes (100 kWh units) for initial manufacturing in 2012
and delivery of MW scale systems to first customers in 2013
• Development joint venture with Plaza Construction/Fisher Brothers will focus
on developing energy storage as merchant power plants
• Over 1500 jobs created with investment of $1.3 Billion 2013-2020
• One full cycle includes full charge, discharge and additional
frequency regulation over the course of one full day.
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www.eosenergystorage.com
[email protected]