Battery Storage

JANUARY 2015

i3 Insights Into Electrochemical Energy Storage

AUTHOR: QUITTERIE DE RIVOYRE, RESEARCH ANALYST, CLEANTECH GROUP

2

ENERGY STORAGE | I3 INSIGHTS INTO ELECTROCHEMICAL ENERGY STORAGE

JAN

UA

RY

20

15

Introduction

Advanced energy storage has been a key enabling technology for the portable electronics explosion. Less than 40 years

after their invention, the lithium and nickel metal hybride (Ni-MeH) technologies have taken over the electronics industry

and they are, with other types of batteries, on the same track for the transportation industry and the utility grid. If renew able

energy is to become prevalent, energy storage is a critical component in shifting peak power demands and reconciling the

intermittent nature of solar and wind power with an always-on grid. An electric economy will demand more electrification of

the transportation sector and it is likely that all vehicles sold by the end of this decade will have some level of hybridization.

Energy storage capabilities in conjunction with the smart grid are expected to see a massive leap forward over the next 25

years. The good news is, the number of patent applications related to regenerative cells like redox flow batteries doubled from

2009 to 2011 and the volume of patent fillings in technologies related to lithium remains growing. Batteries have come a long

way since the first Volt cell in 1800. Rechargeable, also known as secondary, batteries have evolved over the years from lead

acid (Pb-acid) (1859) through flow batteries (1880), nickel–cadmium (NiCd) (1899) and nickel–metal hydride (Ni-MeH)

(mid-1980s) to Lithium-ion (Li-Ion) (1977).

We have conducted a research project to build extensive i3 coverage in Storage. This report presents some of that data, as

it will highlight i3’s insights around the challenges and innovations in the electrochemical storage space. In addition, the

following sections will highlight trends in investments and partnerships in 2014.

2014 has been an interesting year for the energy storage sector, but especially for electrochemical storage technologies. On the

side of electricity grid applications, the year seems to have been the start of a transformative period. With 72 deals and more

than $590 million invested in the sector, 2014 was a fruitful year for battery manufacturers in particular, who received a fa ir

amount of total investments. General observations include that investors transitioned from “the next big thing” toward

deployment-focused business models like system integrators and battery management system developers; corporations

participated in 9 deals, indicating continuous interest from potential commercial partners (corporations invested in 11 deals

in 2013); market is still looking for proof points in the earliest grid storage markets; and disruption-resistant lithium-ion

platforms on the vehicle and OEM side are still looking for additive technology.

Year founded: 2009 Headquarters: Millbrae, CA Paid-in Capital: $37m CEO: John Carrington

Stem, a provider of energy optimization services, combines big data,

predictive analytics and energy storage to reduce electricity costs for

businesses and utilities. Through its integrated solution of cloud-based

predictive software and advanced energy storage, the Stem system provides

peak shaving services and uses predicted energy usage patterns to deploy

stored energy at precise times. For utilities, Stem offers scalable contracts for behind-the-meter and grid-scale

storage. In November 2014, the company won a procurement contract with Southern California Edison under the

Local Capacity Requirement RFO for incremental capacity in the west LA Basin and Moorpark Sub -Areas. Stem

will provide 85MW of behind-the-meter storage to serve as backup power and flexible capacity to the LA region,

to be deployed by 2021. The goal is for Stem to eventually act as a virtual peaker plant, putting thousands of its

systems in buildings in a relatively dense area.

Stem is backed by Angeleno Group, Constellation, GE Ventures, and Iberdrola.

3

ENERGY STORAGE | I3 INSIGHTS INTO ELECTROCHEMICAL ENERGY STORAGE

JAN

UA

RY

20

15

development is focused on improving battery

components like the electrode or the anodes. For

example, Nexeon is one of many companies developing

silicon anode materials which, instead of carbon, have a

much higher capacity for lithium and as a result are

capable of almost ten times the gravimetric capacity per

gram (mAh/g). That is a similar solution California-based

startup Amprius is using, which caught the attention of a

group of investors including Kleiner Perkins Caufield &

Byers and Asian private equity fund SAIF Partners to

inject $30 million last June.

Lithium-Ion (Li-Ion) batteries are rechargeable batteries

in which lithium ions move between electrodes during

discharge and back when charging. In this chemistry, a

lithium compound is intercalated as one electrode

material, compared to the metallic lithium used in a non-

rechargeable lithium battery. Carbon is still the basis of

Li-Ion batteries today but it is possibly the largest

impediment in increasing the energy storage capability

because of its gravimetric density and limited storage

capability compared to pure lithium. Dendrite formation

is another problem precluding high rate charging. This is

why research and

Lithium-Ion Batteries

Year founded: 2009 Headquarters: Menlo Park, CA Paid-in Capital: $60.9m CEO: Kang Sun

400-530 watt-hours per litre in conventional Li-Ion batteries, to 800 watt-hours per litre with Amprius’s

technology. The type of resilient nanoparticle Amprius has developed with silicon stores less energy than silicon

nanowires but can be used in existing factories. Currently, Amprius manufactures core-shell batteries, mostly via

contract manufacturers in Asia. The batteries are now being used in portable devices made by some Chinese

manufacturers.

Example top lithium-based battery innovators on i3

Sakti3 Prieto Battery Amprius Oxis Energy Green Charge Networks Princeton Power Systems Sonnenbatterie Nexeon Envia Systems Sila Nanotechnologies

Amprius develops and manufactures high energy and high-density Li-Ion

batteries. Its silicon anode technology enables 15-30% more energy per

unit weight and volume than state-of-the-art batteries, the company

claims. For example, energy densities of batteries for consumer

electronics like mobile phones, laptops and tablets can be increased from

4

ENERGY STORAGE | I3 INSIGHTS INTO ELECTROCHEMICAL ENERGY STORAGE

JAN

UA

RY

20

15

The increased adoption of renewable energy generation

and advanced vehicle technologies, such as hybrid and

stop-start vehicles, is driving innovation in the lead-based

battery sector. Despite their proven strengths – lead-acid

(Pb-acid) batteries are reliable, safe and inexpensive to

manufacture – Pb-acid batteries require hours to charge,

can only deliver a small percentage of their stored energy

and have relatively short cycle-lives because each

charge/discharge cycle results in irreversible internal

chemical changes. Thus, established manufacturers as

well as emerging players are focusing on improving the

performance of lead-acid batteries. Axion Power

International, for example, uses carbon electrode

assemblies to replace the lead-based negative electrodes

found in conventional Pb-acid batteries. The result is the

e3 Supercell, a low cost battery-supercapacitor hybrid that

uses the same cases, materials, internal components and

manufacturing equipment as conventional Pb-acid

batteries.

It also offers faster recharge rates, higher power output

and longer cycle-life, and can be manufactured in

thousands of existing plants around the world. Young

startup Gridtential has been developing a Pb-acid

battery with higher energy density using chip and hard-

disk drive manufacturing processes. The company’s

end goal is to sell its batteries to power grid operators

for applications like storage for a solar panel system.

Lead-acid Batteries

Taxonomy In Numbers:

681 companies tagged with ‘Energy

Storage’

327 companies tagged with ‘Electrochemical Storage’

Year founded: 2007 Headquarters: Sydney, Australia Paid-in Capital: n/a CEO: John Wood

Ecoult has developed the UltraBattery® technology, a hybrid Pb-acid

energy storage device containing both an ultracapacitor and a battery

in a common electrolyte. It then combines the fast charging rates

and longevity of an ultracapacitor technology with the energy storage

potential of a Pb-acid technology.

The UltraBattery® operates in a Partial state of Charge without frequent overcharge maintenance cycles and

charge faster and lasts longer than other Pb-acid batteries. The company claims its product is also more efficient

and cost-effective than conventional Pb-acid batteries when used for variable power applications. Ecoult has

several projects running, including regulation services, solar smoothing & shifting and wind smoothing

applications. The company has been awarded the largest battery-based renewable energy storage system in

Australia by Hydro Tasmania for the King Island Renewable Energy Integration Project (KIREIP). The 3 MW/1.6

MWh UltraBattery® storage system will enable King Island to reduce its reliance on diesel fuel to supply the

island’s energy needs.

5

ENERGY STORAGE | I3 INSIGHTS INTO ELECTROCHEMICAL ENERGY STORAGE

JAN

UA

RY

20

15

Lead-Acid Batteries

Example top lead-based battery innovators on i3

Gridtential

Energy Power Systems

Firefly International Energy

Altraverda

EEStor

Ecoult

Ecovolt

Axion Power International

Flow Batteries

Within the energy storage market, flow battery

chemistries are getting more and more commercial

traction. i3 data shows 116 partnerships were signed in in

the space in 2013, and 143 in 2014. The vanadium redox

flow battery (VRFB) is the most mature technology, but

other systems like bromine-based systems and others are

cheaper and showing better performance. Several

companies have been emerging over the past few years,

offering innovative storage solutions with applications in

the electric grid and the transportation industry.

Portland, Oregon-based Energy Storage Systems is a

developer of a flow battery that uses iron as its energy

storage medium, which makes the solution cheaper to

produce. Companies like EnStorage are developing new

chemistries, namely hydrogen-bromine chemistry, which

relies on laminar flow to separate the two materials

instead of a membrane. French companies Schneider

Electric and Areva have come to understand EnStorage to

have an

edge over its competitors, owing both to the use of

bromine as a relatively inexpensive storage medium, and

the fact that operation without a membrane reduces cost

and increases battery lifetime. However, other emerging

players have serious potential. Primus Power has also

developed a membrane-free, titanium electrode solution

for batteries suited for power grid applications like

renewables integration and power grid flexibility. The

market is still in flux as utilities are making progress in

understanding what exact technical specifications they

need for different applications – and getting to know the

emerging technology companies – while vendors are

racing to find ways to lower cost and understand utilities’

needs and requirements. However, several use cases exist

and flow batteries have a future in, for example,

UPS/back-up power applications in data centres – an

application that companies like ViZn Energy Systems and

Imergy Power Systems are ready to address.

6

ENERGY STORAGE | I3 INSIGHTS INTO ELECTROCHEMICAL ENERGY STORAGE

JAN

UA

RY

20

15

In January 2014, Australian-based zinc bromine flow battery

developer RedFlow signed a manufacturing deal with Flextronics.

Through this partnership, RedFlow’s zinc bromine flow module

(ZBM) will enter large-scale production in North America (with

Flextronics), increasing the company’s commercial traction with

many already-signed customers, including Emerson, Raytheon,

BlueSky and Schneider Electric.

Year founded: 2005 Headquarters: Brisbane, Australia Paid-in Capital: n/a CEO: Stuart Smith

With this partnership, RedFlow is planning on reducing the cost of its battery by 40% by the end of 2015 be it

through raw material optimisation, improvements in the manufacturing process, logistics cost reduction and

economies of scale. However, RedFlow is currently price competitive in specific applications and is not aimed at

being grid competitive in Australia.

This partnership makes the ZBM commercially available with reliable manufacturing process and scalable

production ready to serve markets like South America, South Africa, Europe and Asia in addition to Austral ia and

North America. RedFlow’s main target applications include off-grid power and telecom towers, large-scale

battery solutions, developing areas with unstable grid infrastructure and renewable energy integrations

(especially in Europe).

This paper gives only a glimpse of the myriad of companies innovating in the energy storage space and the partnerships and

investments happening recently. At Cleantech Group, through our online i3 Platform, we closely follow the trends of

innovation adoption by corporates in resource-intensive industries. Energy Storage is definitely a hot topic for many

utilities, but also for transportation and IT companies. Innovation in electrochemical storage, fostered by venture investors

and power sector, automotive, and IT incumbents, among others, is sure to change the way electricity is generated,

distributed, and ultimately consumed. Cleantech Group looks forward to helping big companies connect with the

sustainable innovation world and engage any party interested in i3’s coverage of the energy storage space.

Example top flow battery innovators on i3 Primus Power RedFlow ViZn Energy EnStorage Energy Storage Systems Imergy Power Systems UniEnergy Technologies VionX Ashlawn Energy EnerVault

Conclusion

ENERGY STORAGE | I3 INSIGHTS INTO ELECTROCHEMICAL ENERGY STORAGE

JAN

UA

RY

20

15

Founded in 2002, Cleantech Group’s (CTG) mission is

to accelerate sustainable innovation. Core to this

mission is i3, an online platform that connects

corporates with innovation, at scale, by allowing them

to find, vet, and connect with start-ups—efficiently

building an innovation pipeline. In conjunction with i3,

we offer premium Advisory Services for corporates in

need of expertise designing and executing strategies for

sustainable innovation, and managing the pipeline

created in i3. The i3 platform comes to life at our global

Events, which convene corporates and start-ups, along

with other players shaping the future of sustainable

innovation. CTG is headquartered in San Francisco,

and has offices in London and New York. For more

information, please visit cleantech.com

The i3 market intelligence platform is the definitive

source for insight into innovation: it connects

corporate, utility, government, and venture capital

teams with companies creating sustainable

technologies and business models. Subscribers use i3

to discover and vet companies, and explore trends

across 18 technology sectors using proprietary data.

Visit i3connect.com to learn about this powerful

network that allows you to find, vet, and connect with

24,000+ companies that are driving innovation across

all sectors in cleantech, sustainable innovation, and

resource efficiency.

About

7

About