Thermal Energy Storage Challenges and Opportunities February 26, 2020

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www.energystorage.org Today’s Speakers

Evan Berger Collin Coker Corey Blackman Sales Leader, VP Sales & Marketing, Head of Technology, CALMAC – Northern US & Viking Cold Solutions SaltX Canada

www.energystorage.org Ice Thermal Storage in the U.S. Challenges & Opportunities February 2020 Thermal Storage: a quick background Efficient, cost-effective way to store power

• Each tank is a 15-25kW “thermal battery” for 6 to 10 hours • Design life is 40 years; no degradation of storage capacity • Roughly 1/3 of the cost of battery storage • Trane has installed over 500 MW / 3.4 GWh of CALMAC® thermal storage in the U.S.

. University, Philadelphia University, Arizona New York Class A Office 250 kW / 2 MWh 4 MW / 27 MWh 20 MW / 150 MWh of installations in NYC 8 The opportunity Big market with compelling financials – simple energy arbitrage Thermal storage saves customers money by shifting power from expensive on-peak hours to the nighttime, when energy can be much cheaper.

The savings mechanisms are demand charges (utility and grid) and time-of-day rates, which are available to non-residential customers.

With available state and utility incentives, we are able to see 3-7 year paybacks across the U.S. 3D Histogram of active thermal storage projects Our biggest markets are K12, hospitals, universities, and office, and the opportunity is essentially limitless. Over 1 GW (4,000+ projects) of CALMAC® thermal batteries installed worldwide 9 #1 Challenge is Awareness

• Almost no one understands commercial demand charges. • Even fewer understand Grid demand charges (PJM, ISO-NE, NYISO, etc.). • Plurality of deregulated market customers are on fixed priced contracts that cost more, year after year, than default option

“Everyday customers” like schools, hospitals and universities are unsophisticated in terms of energy – rate and tariff design is opaque, and utility reps are typically insufficiently trained to provide them with the necessary clarity.

There is no unbiased resource they can turn Trane marketing piece from August 2018 to for help. 10 Utility Bills Cloud Understanding

Some states require no itemization at all • “here’s your bill, pay up”

Typical 3rd Party Supply Bill • “blended” electric rate of 7.5 cents/kWh Default Service Customer • No mention of PJM’s Capacity or NITS • Itemization, but no explanation charges, which are peak-related 11 Thought Experiment

Cable bill vs. Grocery Bill • One you receive up front; the other comes in the mail two weeks after the fact • One is itemized in a way that you can easily follow; the other is littered with unexplained fees and surcharges • One is naturally easy for the human mind to grasp; the other is based on abstract telecommunications concepts and is determined by a legal proceeding between the FCC, your public utility commission, and the providers

Which one do you actually understand?

12 Summary

These are exciting times for all of us in the energy storage industry • Thermal storage business is growing steadily, thanks to new incentives and new appreciation • The technology has been compelling for a long time • The greatest challenge by far is awareness of how C&I customers are charged for their power

Trane, the Circle Logo, CALMAC, the Square Logo, and Ice Bank are trademarks of Trane in the United States and other countries. All trademarks referenced are the trademarks of their respective owners. Intelligent Thermal Energy Storage Long-Duration | Efficiency | Resiliency Energy Storage Basics for Cold Storage

Conventional Electrical Storage Generation Battery Future (Electricity) Consumption

Thermal Energy Storage (TES) Generation Refrigeration TES Consumption (Cold Energy)

TES Levelized Cost of Energy (LCOE) < 2¢ per kWh

vikingcold.com Customer Freezer Applications  1,000 to 200,000+ ft2  -20° to 32° Fahrenheit  Run nearly 24/7  5 kW to 2+ MW per installation  Thousands of facilities

vikingcold.com TES - Permanent & Safe Thermal Mass Phase Change Material: PCMs store and release energy as they transition between solid and liquid states

Latent Heat Absorption (vs Sensible Heat) 300x more heat capacity than frozen food 8x heat transfer rate of frozen food

Natural Convection PCM absorbs rising heat Releases cold that falls across the food

vikingcold.com TES Absorbs & Consolidates Heat

vikingcold.comvikingcold.com TES - Intelligent Controls, Monitoring, Notifications Flexibility: Efficiency and Demand Management Strategies Consumption reduction Demand, time-of-use, peak avoidance Easy Integration Subsystem of existing controls Control and platform agnostic Secure cloud connection API or BACnet interface Visibility & Actionable Intelligence 24/7 Real-time intelligence Performance tracking and trends Customizable dashboards & reports Notifications via text, email, or call Identifies issues prior to becoming costly problems vikingcold.com TES Also Adds Resiliency  No power required  Holds temperatures 3X longer  Power outages & other grid challenges  Natural disasters  Mechanical failures

Wildfires & Scheduled Brown Outs

Mechanical Failures Ice Storms Hurricanes Wildfiresvikingcold.com Frozen Food Warehouse 93,000 Ft2 in PG&E Territory 13-Hour Daily Peak Period

43% NET CONSUMPTION (kWh)

29% PEAK DEMAND (kW)

50% TEMPERATURE STABILITY vikingcold.com Successful Utility Supported TES Projects

 California Energy Commission Energy Storage Program: Self Generation Incentive Program (SGIP)  SCE  SDG&E  PG&E  8 installations targeting ICAP hours  Custom Incentive Programs  VCS provides M&V data within the service offering  Deemed/Prescriptive Programs

vikingcold.com Utility-Sponsored TES Cold Storage Program

 8 Customer installations

o Largest foodservice distributor (Sysco) o Largest cold storage 3PL (Americold) o Food processors o Greater Boston Food Bank  Average facility ~50,000 ft2  Largest Facility 157,000 ft2  1.3 MW of Curtailment  Average install period: 127 days from agreement to commissioning

vikingcold.com Utility Sponsored Solar + Storage Program  Third-Party M&V Study Average Compressor kW  6,000 ft2 158 kWh 124 kWh  Existing PV system Decrease in Increase in Energy Energy  TES stores excess solar from the Grid from Solar energy  Discharges stored solar kW energy at night

39% Annualized Energy Savings 95% Overnight

Grid Energy Reduction vikingcold.com Levelized Cost Of Energy < 2¢ per kWh

EfficiencyOperational | Flexibility & Maintenance: | Sustainability $0  No mechanical components  Uses existing refrigeration system  Software updated digitally

20-year+ system life, with no capacity degradation

Round trip efficiency: 100% Requires no additional real estate

Discharge depth: 80% Improves average efficiency ~25%

Discharge length: 2 to 13 hours vikingcold.com Energy Industry Recognition of TES in 2019

Technology Pioneer Platinum Project of the Year Top Green Provider

Energy Institute Behind-the-Meter Best Large-Scale Solar Top Software & Technology Innovation Award Technology Finalist Storage Product 2019 Technology Provider

vikingcold.com Why Thermal Energy Storage ? vikingcold.comvikingcold.com Energy Storage + Efficiency No additional real estate No roundtrip energy loss Long-Duration:13-Hour Discharge LCOE < 2¢ per kWh Zero maintenance Improved temperature stability 20+ year system life No additional energy required Easy retrofit installation Back-Up Resiliency High C&I participation rate Collin Coker VP Sales & Marketing Thanks! [email protected] vikingcold.comvikingcold.com

EnerStore

Large-Scale Long-Term Thermal Energy Storage Thermochemical Energy Storage with CaO

Corey Blackman Head of Technology

2020-02-26 This is SaltX

Swedish innovation company

15 experienced staff members

Focus on large scale energy storage

Several patents (materials, methods & systems)

Publicly traded with 18 000 shareholders Our Vision

To accelerate the proliferation of renewable energy sources to decarbonise the current energy system. Why thermal energy storage?

Source: 1414 degrees based on extracted data from PWC 2015, Sterner et al. Source: https://greentechnewstoday.com/renewable_energy/ The EnerStore Solution Renewable Energy Integration

In Sweden, electricity prices were negative for the first time Wind in February 2020. &/or solar energy Energy Energy

Day 1/ Day 2/ Month 1 Month 2 SaltX SaltX SaltX SaltX

SaltX Electric Thermal Energy Storage - an emerging market

Highlights

- An economic superiority of a thermal energy storage to stabilize renewables was confirmed. - A low storage cost overcomes low efficient characteristics under long storage time.

Source: Toru Okazaki – The Institute of Applied Energy, Japan; https://www.sciencedirect.com/science/article/abs/pii/S0960148119317380 Application Areas

Large-scale renewable/waste energy storage Cost-effective long-term storage of heat above 150°C

Renewable Energy: Combined Heat & Power: Industrial Steam:

 Peak shifting/curtailment avoidance  Flexibility  Storage  Long-term storage  Reuse/upgrade of retiring assets  High temperature district heating The Technology The Chemistry

Tested at: SaltX Laboratory, Stockholm University (Sweden), German Aerospace Centre, Technical University Munich (Germany)

*NCS = Nanocoated Salt The Thermodynamics

Source: Vandersickel A., 2016, Thermo-chemical heat storage for 200 to 600 °C The Process

NCS NCS CaO + H2O  Ca(OH)2

NCS Charge/Dehydration Ca(OH)2 Reactor

CaONCS Transport Discharge/Hydration Reactor

*NCS = Nanocoated Salt SaltX Pilot Plant in Berlin, Germany 0.5 MW Pilot Plant in Berlin, Germany

Charging Temperature of NCS Material 550°C to 750°C Heat Delivery Temperature Up to 120°C Mass of NCS Material 20 tonnes NCS Material (Chemical) Energy Density 500 kWh/tonne

Storage Capacity Up to 10 MWhth

Charge Time 10 to 12 hours (5 MWhth)

Discharge Time 10 hours (5 MWhth) (Hot) Start-up time < 5 mins

Plant Opening Event clip: https://youtu.be/y3862TjPk8U The Challenges

This is a pioneering technology with various challenges identified as well as measures to overcome them. Technical: reactor optimisation, controls optimisation

Cost Reduction: component selection, cost vs. performance

Policy: energy storage roadmap, incentives, taxation schemes, awareness Current Developments

Heat Transfer Coefficient Reactor(€/kW) Cost Fixed bed 20- 30 W/m 2 K Moving bed 40- 50 W/m Development Stage 2 K Fluidised Bed 200- 300 W/m 2 K Fluidised Bed Optimised 350- 400 W/m 2 K The Key to Success

 Successful application of the technology is based on building the proper ecosystem of partners and actors.

 Collaborative Development – pragmatically and cost-effectively addressing the idiosyncrasies of each market. SaltX’s Thermochemical Energy Storage System ρ

450-600 oC 500 kWh/tonne Independently Scalable High temperatures available for The material energy density is Storage, charge & discharge industrial heating & electricity several times higher than water, capacities can be scaled generation molten salt & other storage independently materials

6 hours - 6 month All natural Economical The thermochemical technology The SaltX material is environmentally System with few/no makes it possible to store energy for friendly & fully recyclable unconventional components & months an abundant energy storage material

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