ESS Inc. (NYSE: GWH) revealed a two-unit deal with a California utility this week, and an Australian customer said 10 of the Wilsonville company’s Energy Warehouse systems were on their way Down Under, with more to follow.
ESS is the long-duration energy storage company founded locally more than a decade ago that went public in fall 2021 through a SPAC merger, raising around $250 million. The company has reported progress in building out its Wilsonville production capacity, but deliveries and revenue recognition have lagged expectations.
Investors will be watching closely for signs of progress on March 1 when ESS delivers its quarterly results. In its last report, the company cited parts shortages as a constraint. CEO Eric Dresselhuys said then the company thought it could ship “20 or more” Energy Warehouses in the fourth quarter.
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ESS stock has been stuck in the $2-$3 range for months, off more than 70% from its opening price.
Iron-based flow battery
ESS makes a unique iron-based flow battery that it bills as a better alternative to widely deployed lithium-ion batteries, especially for longer-duration output — from six to 12 hours instead of the one to 4 hours conventional batteries provide.
The California deal announced this week was with the Turlock Irrigation District, a Central Valley water and power utility. The Energy Warehouse systems will be paired with a pilot project that will see solar panels installed over irrigation canals.
The systems bound for Australia are going to Energy Storage Industries-Asia Pacific, or ESI. After the initial 10 systems, 10 more “will follow in coming weeks,” ESI said. Meanwhile, ESI is building a plant to assemble iron-flow batteries using core components manufactured in Wilsonville.
The ESI partnership came under attack in a short seller report in December and is the subject of a class-action suit. It claims ESI is a de facto subsidiary of ESS and has no real staff, office or ongoing business activity. ESS called the allegation that ESI was a related party “false” and the suit “meritless.”
