ESS is joined by U.S. Senator Ron Wyden, EXIM leadership, partners, and local officials to cut the ribbon on the company’s new manufacturing line. (Photo: Business Wire)
ESS is expanding production of its proprietary iron flow battery modules, aided by $50 million in financing from the Make More in America Initiative of the U.S. Export-Import Bank.
WILSONVILLE, Ore.—ESS Tech, Inc., a manufacturer of long-duration energy storage systems (LDES) for commercial and utility-scale applications, hosted a ribbon-cutting event recently to celebrate the company’s growing domestic manufacturing capacity.
According to a company release, ESS became the first energy storage manufacturer to be supported by the Make More in America Initiative of the Export-Import Bank of the United States (EXIM) with the recent approval of a $50 million financing package. The company will use the proceeds from the deal to expand production of its proprietary iron flow battery (IFB) modules.
The company’s first fully automated IFB module line was commissioned last year, and the planned expansion will leverage this design to add capacity “quickly and cost effectively,” the release stated.
ESS serves a global customer base, with projects announced or underway in the U.S., Europe, Australia, and Africa. The LDES Council and McKinsey & Company project the world will need to install up to 140 TWh of LDES by 2040 to achieve decarbonization targets, according to the release.
The Export-Import Bank’s Make More in America Initiative (MMIA) finances export-oriented domestic manufacturing projects to support American exports and American jobs. The Make More in America Initiative supports environmentally beneficial projects, small businesses, and transformational export transactions in areas such as semiconductors, biotech and biomedical products, renewable energy, and energy storage, while supporting domestic jobs.
“EXIM’s Make More in America initiative aims to support American jobs and U.S.-based companies working to meet global demand for critical technologies,” said EXIM Vice Chair Judith Pryor, in the release. “As a leading commercial manufacturer of advanced energy storage technology, ESS was an obvious choice. This award not only supports ESS to meet growing global demand for LDES but also reinforces EXIM’s dedication to strengthening domestic supply chains, supporting sectors vital for U.S. national security, and deploying American technology in the fight against climate change.”
“Make More in America enables EXIM to support U.S. jobs and U.S. supply chains by providing key financing tools for goods and services in critical export-oriented industries like renewable, sustainable energy, manufacturing, and transportation,” said EXIM Director Owen Herrnstadt, in the release. “With its cutting-edge, sustainable, long duration energy storage system that powers clean energy developed and produced by U.S. workers, ESS is a model for EXIM’s Make More in America initiative.”
ESS CEO Eric Dresselhuys said that EXIM’s Make More in America initiative is “perfectly suited to meet the needs of growing American manufacturers.”
“Long-term financing, at very attractive rates, provides exactly the non-dilutive capital that companies like ESS need to achieve scale and meet global demand for clean energy technologies,” Dresselhuys said in the release. ”There is broad bipartisan agreement that manufacturing more critical technology in America is a high priority. We look forward to working with EXIM and other stakeholders to build and deliver the energy storage solutions that will drive global decarbonization.”
“Today is definitely a blue-ribbon day for jobs in Oregon and green energy in America,” said U.S. Senator Ron Wyden, of Oregon, in the release. “Cutting the actual ribbon here at ESS on one of our state’s most advanced energy storage manufacturing facilities is a powerful testament to Oregon’s leadership in clean technology. Tripling ESS’s production capacity and helping meet global demand for long-duration energy storage systems, plus the partnership with EXIM, adds up to a big win that will generate clean tech and employment now, and for generations to come.”
Recently, ESS announced a partnership, financed in part by EXIM, with Nigerian energy company Sapele Power. It is said to represent one of the first long-duration energy storage projects in Nigeria and the entire sub-Saharan Africa region. The deal won EXIM’s Sub-Saharan Africa Deal of the Year Award for driving investment in Africa and creating new opportunities across the continent, the release stated.
ESS also has partnerships with global energy and services companies, including Honeywell International, German energy company LEAG, and, through a local partner, Australian generator Stanwell Corporation, the company said.