The merge between ESS, a US manufacturer of long-duration energy storage systems, and ACON S2 Acquisition Corp, a special purpose acquisition company, has created the first energy storage company that is publicly listed on the New York Stock Exchange (NYSE).
ESS retains its name and shares and warrants will start trading on the NYSE as GWh and GWh.W, respectively, according to a statement.
The merge will not change the restructure of ESS’ executive board which will continue to be led by Eric Dresselhuys, the CEO; Craig Evans, President and Co-founder; Julia Song, the CTO and Co-founder; and Amir Moftakhar, the CFO.
Eric Dresselhuys, said: “This is an incredibly proud moment for the entire ESS team and a milestone for the industry at large.
“We are excited to begin our next chapter as the first publicly traded long-duration energy storage company on NYSE. Our differentiated battery technology gives us a first-mover advantage in a rapidly expanding market, while simultaneously transforming the value proposition of long-duration storage to support renewable energy generation for the electrical grid.
“The proceeds from this transaction will enable us to scale our operations to meet the growing global demand for a product that the world needs today to support the transition to clean, renewable energy.”
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The development follows SB Energy, a US subsidiary of Japanese bank SoftBank ordering some 2GWh of ESS’ iron flow energy storage systems to support its renewable energy growth.
The demand for long-duration energy storage is expected to increase in the US and globally as utilities and governments intensify the rollout of renewable energy for decarbonisation and to provide baseload power.
ESS uses iron, salt, and water in its battery manufacturing process resulting in less expensive products compared to other batteries on the market. The company’s system enables utilities to provide 4 to 12 hours of flexible energy capacity.
In addition, the company’s manufacturing process and products used are considered sustainable as few heavy materials and minerals are required in the process when compared to other products.
Adam Kriger, CEO of ACON S2, added that the merge and listing on NYSE will fuel ESS’ next stage of growth. He said: “As a public company, ESS will have the platform to execute against its vision, capitalise on the rapidly growing opportunities in the long-duration energy storage market, and work to establish market leadership.”
The transaction that closed the merge comprises $308 million in pro forma net cash contributed by firms including SB Energy, Fidelity Management & Research, Koch Industries and BASF Venture Capital