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LEAG and ESS to develop Clean Energy Hub for Germany 

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LEAG to develop up to 14 GW of renewable generation paired with 2-3 GWh of energy storage and 2 GW of green hydrogen production

MUNICH – 15 June 2023 – Today, ESS Tech Inc. (NYSE:GWH) (“ESS”), a leading global manufacturer of long-duration energy storage systems, and LEAG, a major German energy provider, signed an initial agreement to accelerate the clean energy transition through the deployment of renewable generation and long-duration energy storage (LDES) using ESS iron flow battery technology.  

Following the execution of definitive agreements and normal financial close, anticipated in Q3 2023, LEAG and ESS plan to build a 50 MW / 500 MWh iron flow battery system at the Boxberg Power Plant site, to be commissioned in 2027. The resulting 50 MW/500 MWh module is expected to become a standardized building block in LEAG’s plan to deploy 2-3 GWh of storage in the transformation of the LEAGs power plant locations. LEAG and partners plan to invest €200 million with further support anticipated from additional investors and stakeholders.

ESS has developed an iron-based LDES technology which uses safe and sustainable battery chemistry to deliver low-cost, utility-scale energy storage. ESS technology is currently manufactured at the company’s facilities near Portland, Oregon, USA. ESS systems have already been deployed in commercial microgrid systems, with utility-scale projects underway in the USA and Australia. 

We look forward to partnering with LEAG to develop the model for utilities and communities worldwide transitioning from coal to clean, renewable energy. The deployment of renewables and long-duration energy storage will not only deliver reliable, clean energy to effectively replace the baseload power currently provided by coal, it will deliver economic opportunity and a cleaner environment for Germany.

Eric Dresselhuys
CEO of ESS

CEO’s of LEAG and ESS discussing their plan to develop Clean Energy Hub for Germany.

LEAG is a leading operator of large-scale lignite mining and coal-fired generation in Eastern Germany that is implementing a vision to transform the coal-dependent region into Germany’s Green Powerhouse. The company plans to develop 7-14 GW of renewable generation paired with 2-3 GWh of energy storage and 2 GW of green hydrogen production. Combined, these technologies will create a net-zero-carbon baseload energy system. When fully operational, LEAG expects to demonstrate a renewable energy system at scale which not only replaces baseload coal generation, but uses short-duration storage, LDES and hydrogen to replace natural gas for grid balancing.

A key requirement for our transformation into Germany’s Green Powerhouse is the deployment of cost-effective Long-Duration Energy Storage. We are energized to demonstrate the value of iron flow battery technology at scale. The Energy Resilience Leadership Group and Breakthrough Energy have provided an ideal framework to drive rapid technology development and deployment to meet emissions goals as soon as possible.

Thorsten Kramer
CEO of LEAG

LEAG and ESS have joined the Energy Resilience Leadership Group (ERLG), a multi-stakeholder initiative led by Breakthrough Energy and Siemens Energy that brings together corporate CEOs, political leaders, financial institutions, and startups at the technology frontier. The Group was launched at the 2023 Munich Security Conference with the goal to enhance Europe’s energy resilience by rapidly bringing emerging climate technologies to scale. ERLG forges partnerships between startups and corporates to work towards deploying commercially viable projects within 24 months. The project of LEAG and ESS is one of the projects that the ERLG network is helping to accelerate.

We are pleased to support a long-term strategic relationship between energy and technology experts LEAG and ESS through the Energy Resilience Leadership Group. Delivering green baseload power thanks to scalable, long-duration energy storage will not only solve a major challenge to decarbonization. It will also enhance Europe’s energy resilience, because less natural gas will be needed for backup power generation in the future.

Philipp Offenberg
Senior Manager, Europe at Breakthrough Energy

Summary

  • U.S. energy storage technology manufacturer ESS Tech, Inc. and German energy provider LEAG cooperate to scale up iron-flow technology to provide long-duration energy storage as part of LEAG’s strategy to become Germany’s Green Powerhouse.
  • Breakthrough Energy supports the cooperation / project within the programme of Energy Resilience Leadership Group (ERLG).
  • First phase: demonstration of 50 MW / 500 MWh iron flow battery system at the Boxberg Power Plant to be operational by 2027.
  • Project expected to catalyze the sustainable transformation of a major German coal mining and energy generation region.  

About the Energy Resource Leadership Group

The Energy Resilience Leadership Group is a multi-stakeholder initiative led by Breakthrough Energy and Siemens Energy that brings together corporate CEOs, political leaders, financial institutions, and startups at the technology frontier. The Group was launched at the 2023 Munich Security Conference with the goal to enhance Europe’s energy resilience by rapidly bringing emerging climate technologies to scale. ERLG forges partnerships between startups and corporates to work towards deploying commercially viable projects. 

About ESS Tech Inc.

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.  

For further information please contact

LEAG Kathi Gerstner I kathi.gerstner@leag.de I +49 1723497384  

ESS Morgan Pitts I morgan.pitts@essinc.com I +1 503-568-0755 

Breakthrough Energy Alison Menon I alison@breakthroughenergy.org I + 1 (202) 468 0839 

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 and the Company’s relationships with customers. 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. 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.

By ESS Tech Inc. on June 15, 2023
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