International Battery SeminarMarch 23, 2017

“Next-Generation Liquid Energy Storage Systems”

Presented by: H. Frank Gibbard, CEO

WattJoule Corporation, Devens, MA

Stationary Energy Storage – Why Now?

2

Renewables, Microgrid, TOU, GridPower Quality, UPS Bulk Power

1kW 10kW 100kW 1MW 10MW 100MW 1GW

Storage Power

Hour

sM

inut

esSe

cond

s

Stor

age

Dur

atio

n

Pumped HydroCAES

Li-Ion, Lead AcidFlywheels

STATIONARYENERGY STORAGE MARKET

GLOBAL OPPORTUNITY$10B+ by 2020

No economic and safe technology servesthis market today!

REDOX FLOW BATTERYADDRESSABLE MARKET

Flexible Platform Required for Broad Application Set

Flow Battery‘s Time Has Come

“MUKILTEO, WA — UniEnergy Technologies (UET)'s strategic partner

and affiliate Rongke Power will deploy the world's largest battery,

rated at 800 Megawatt-hour (MWh). UET and Rongke Power have

worked closely together since 2012 to develop large-scale Vanadium

Flow Batteries (VFB's) to meet the challenges of grid modernization,

renewable penetration, and resiliency.”

3

UET Press Release, May 31, 2016

What Kind of Flow Batteries Are There?

4

• Redox Flow Batteries – all active materials are dissolved in the circulating electrolytes Chromium-iron (Thaller, NASA, early 1970’s) All-vanadium (Skyllas-Kazacos, 1996) Polysulfide-bromine (Remick and Ang, 1984) Vanadium-bromine (Skyllas-Kazacos, 2003) Organic with aqueous electrolytes (Aziz et al., 2016-17) Organic with nonaqueous electrolytes (Jansen et al., 2013)

• Hybrid Flow Batteries – one active material is deposited as a solid; the other is soluble Zinc-bromine (R. Zito, 1960’s) Iron-iron (Hruska and Savinell, 1981)

• Flow Batteries With Gaseous Negative Hydrogen-chlorine (Maricle, 1978) Hydrogen-bromine (Glass and Boyle, 1965)

Why Redox Flow Batteries?

5

Separation of POWER and ENERGY More POWER = larger stack More ENERGY = larger tank Competitive energy efficiency

Highly durable: 10,000+ cycles Safe, non-flammable liquid Lowest CapEx & OpEx Large application space

Large Vanadium Flow Battery Projects

6

Flow Battery Market is Nearing a Tipping Point

7

Desirable system characteristics

– High cell voltage– High solubility of active materials– High efficiency

• Rapid electrode kinetics• Low internal resistance• Minimal side reactions

– Wide operating temperature range– Low electrolyte toxicity– Low electrolyte corrosivity– Minimal impact of mixing of negalyte and posilyte

Redox Flow Battery

8

Skyllas-Kazacos, 1986

A Chemical/Electrochemical “Tour de Force”– Four (!) “stable” oxidation states in aqueous solution– Appropriate cell voltage– Adequate electrode kinetics– Restore system to original state by cross-mixing electrolytes

Negative: V2+ ⇌ V3+ + e-

Positive: VO2+ + 2H+ + e- ⇌ VO2+ + H2O

Net: VO2+ + 2H+ + V2+ ⇌ VO2+ + H2O + V3+ Eo = 1.26 V

All Vandium RFB

Lithium-Ion Comparison

ATTRIBUTE LITHIUM-ION WATTJOULE

DURABILITY1 3500 Cycles 10,000+ Cycles

LIFE CYCLE COST2 $82/MWh $28/MWh

PERFORMANCE Restricted Window Widest Window

COOLING Air Conditioning Simple Fan Cooling

SAFETY Fire & Explosion Risk Safe Water Based

MFG. CAPEX Captive $100 Contract Mfg. $1

ECONOMY OF SCALE 1,000MWh = 1GWh 50MWh

For Stationary Market Applications

9

1 100% DOD Cycles 2 Per MWh of electricity stored

Product Development Approach

10

• Engineer a next-gen OEM platform: quantum improvement

• Start with a proven chemistry to lower risk: vanadium redox

• Identify key tech barriers preventing full commercialization

• Utilize open innovation approach to secure best IP

• Leverage the best expertise wherever it is

• Develop a multi-generational pipeline of product improvements

WattJoule is Executing on This Approach

11

CURRENT PROBLEM SET WATTJOULE IMPROVEMENT

Energy converter stacks are large and use expensive materials

Our breakthroughs enable higher material efficiency and reduced cost

Electrolyte energy density is low and requires large tanks

We have technology that increases the energy we can store in every liter

System needs refrigerated cooling thereby increasing costs and lowering efficiency

We can now eliminate AC and chillerequipment with our platform

Lifetime system efficiency needs improvement

We now add major efficiency improvements with no added cost

Need for costly, high purity active materials like vanadium

We have a pathway to utilizing less and then no vanadium over time

Relatively high cost vs. attractive economics

All of the above improvements translate to significantly lower cost

Building a Superior Product

Unrelenting Engineering Focus on The Problem Set

Acquisition of World Class Energy Storage R&D

12

Office of Electricity Energy Storage Program

College of Engineering Electrochemical Energy Storage Lab

Multi-Million Dollar Funding of Early R&D

Technical Teams That DevelopedWattJoule Exclusively Licensed

Technology

Significantly Lower Capital Cost

13

Based on a 1MW, 5MWh All Vanadium System

EnergyModule

70%

State-of-the-Art Flow Battery $2,500,000

WattJoule's Flow BatteryGeneration I

$850,000

PowerModule

30%

67% Cost Reduction

PowerModule

60%

EnergyModule

40%

Key Target Metric Gen 1 Gen 2 Gen 3 Core Benefit

Converter Stack Power Density 6X 6.5X 7.5X Much lower material cost

Electrolyte Energy Density 2.2X 3X 4-6X Much less liquid required

Electrolyte Temperature Range 3X 3.2X 3.2X No expensive cooling needed

Roundtrip Efficiency 1.1X 1.2X 1.25X Lower life cycle cost

Vanadium Cost Reduction 1.2X 2-2.3X 3-4X Much lower vanadium cost

DC System Capital Cost ($/kWh) 170 130 100 Significantly lower CapEx

Development Pathway to Better Metrics

14

Gen 1 Metrics Already Demonstrated in ElectriStor™ Hardware

Quantum Improvement Factors

Engineering Prototype I1-5 Cells, 250 cm2, DC Only

15Built to Establish Gen I System Materials & Preformance

16

Engineering Prototype I1-5 Cells, 250 cm2, DC Only

Excellent Stability of Discharge Energy

Ener

gy, W

h

ElectriStor™ OEM Platform

17

EnergyConversion

Module

Bi-DirectionalDC/ACPower

Conversion

SystemEnvironmental

Packaging

Network Protection

EnergyManagement

Software

EnergyStorageModule

Multiple Diverse

Applications

Utility Grids

MicroGrids

Solar

Wind

Backup

WattJoule Provides ThisModular DC Storage System

WattJoule's OEM Customers Provide Full Solutions

OEM Value Add End Customers

EnergyConversion

Module

EnergyConversion

Module

EnergyStorageModule

18

ElectriStor™ ES10 Test System2kW, 10kWh Engineering Prototype II, DC Only

Built to Validate Gen I System Operation & Metrics

Performance of ES-10 Prototype

19

20

ElectriStor™ Demo SystemsFull AC Interface to Facilitate Early Testing

Customized ISO containers, easy to transport and place on site. Multiple containers

interconnect for larger systems.

ES10020kW, 100kWh

ES500100kW, 500kWh

Vanadium Bromine RFB – Gen 2WattJoule bought Skyllas-Kazacos patents

21

Electrode reactions for charge:

Negative electrode reaction:2𝑉𝑉3+ + 2𝑒𝑒− → 2𝑉𝑉2+

Positive electrode reaction:2𝐵𝐵𝐵𝐵− + 𝑄𝑄𝐵𝐵𝐵𝐵𝑛𝑛 → 𝑄𝑄𝐵𝐵𝐵𝐵𝑛𝑛+2 + 2𝑒𝑒−

Insoluble bromine oil falls to the bottomof the catholyte tank

Gen 2: New Positive Active Material

22

• Decrease amount of Vanadium by nearly 50%

• Increase electrolyte energy density

• Technology demonstrated in lab-scale hardware

• Utilizes Gen I high-power density cell technology

• Proprietary complexing agent provides multiple system benefits

• Strong WattJoule IP position

Vanadium Bromine RFB

23

ALTERNATIVE FLOW CHEMISTRIES VANADIUM BROMINE

Hydrogen bromine requires large high pressure tanks to store flammable and explosive gaseous hydrogen, and needs expensive catalyst that degrades over time

Requires no catalyst and all the energy is safely stored in liquid form. Electrolyte contains over 60% water and cannot burn or explode.

Zinc bromine has dendrite problems on electrodes that require stripping and have durability issues. Power and energy coupled since hybrid flow. Low power density.

True redox flow battery that requires no plating and therefore has no dendrite problems. Power and energy capability completely uncoupled.

Iron chromium has a significant hydrogen and chlorine gassing problem under normal operation and has low energy density.

Virtually no gassing potential due to electrochemical operating mode. Much higher energy density can be achieved.

Vanadium-vanadium requires large stacks and tanks and the higher cost of vanadium, also has a limited temperature range.

Much higher power and energy density can be achieved while cutting vanadium use by 50%. Temperature range not an issue.

Vanadium Bromine vs. Other Chemistries

Gen 3 Energy Storage System

24

No vanadium present in system

Highest-energy-density electrolyte tested by WattJoule

Lowering Electrolyte Cost

80

50

30

0

10

20

30

40

50

60

70

80

90

Gen 1 Gen 2 Gen 3

Vanadium completely replaced with low cost substitute in Gen III

WattJoule Electrolyte Cost in $/kWh

25WattJoule Confidential

WattJoule Electrolyte Cost Reduction Roadmap

With Defensible Proprietary Technology

100%V

50%V

0%V

Our Long Duration Advantage

26

Storage Duration in Hours

Rela

tive

DC

Cos

t in

Perc

ent

Lithium-ion

WattJoule ElectriStor

Cost Benefit

Significantly Lower Mfg. Cost

27

Fundamental Driver: Liquid vs. Solid

80% Liquid Electrolyte, Mostly

Water

WattJoule Battery Lithium Ion Battery

95% Highly Processed Solid Materials

5% Liquid Electrolyte20% Solid Components

WattJoule Mfg. CapEx Advantage: 20X Better than Lithium-Ion 1

1 Based on WJ pilot plant study

28

• Redox flow batteries well suited to non-mobile bulk energy storage applications

• Highly cost-competitive for long-duration storage applications

• Strong potential for lowest levelized battery cost, long life, and high efficiency

• Vanadium redox battery is nearest commercialization and undergoing further intensive cost reduction

• Multi-generational approach to product development may provide ultimate winners in this category

• Now collaborating with international partners on specific applications of our ElectriStor™ platform

Conclusions

Dr. Frank GibbardCEO & Founderfrank@wattjoule.com603-502-3234

Greg CiprianoVP Business Development & Foundergreg@wattjoule.com508-942-8995

WattJoule Corporation100 Jackson RoadDevens, MA 01434

www.wattjoule.com

2929