10-Year Insurance Coverage Guarantees Long-Duration Flow Battery Performance
ESS Inc. announced that it is now including 10-year insurance coverage on its long-duration energy storage products through Munich Re, one of the world's leading insurance companies. The innovative policy provides warranty backstop for ESS Inc.'s proprietary flow battery technology, supporting the system performance guarantee regardless of project size or location.
ESS Inc. has also collaborated with Munich Re to develop a separate Project Cover to ensure a bankable product offering. The Cover directly addresses technology risk and business continuity risk, and can be extended in order to provide long-term assurance of project performance to system owners, investors and lenders in the energy sector.
The long-duration batteries from ESS utilize a non-toxic, non-hazardous, and completely recyclable iron-based electrolyte that provides over 20,000 cycles of power with little or no maintenance. A flow battery offers significantly more storage capacity than shorter-duration solutions, so users have the flexibility to shift both their energy flow and rate of storage as needed for more efficient energy management.
The insurance is two-fold, providing:
- 10-year global insurance policy on the company's flow battery technology, which sets a cap on replacement costs of defective parts or modules for project owners, and;
- Separate Project Cover that is available to project owners, investors and lenders to provide long-term assurance of a project's operation should ESS experience any adverse or unforeseen circumstances.
This two-part coverage will displace the technology risk of the Energy Warehouse batteries - regardless of project size or location - while also insuring the project itself for its intended lifetime.
"As a leader in the long-duration energy storage industry, we're constantly looking to innovate and break ground on new programs that increase confidence in our utility-scale storage solutions. We are pleased to now offer a comprehensive insurance policy on all future projects, backed by another industry leader, Munich Re," said Craig Evans, founder and CEO of ESS Inc. "This policy is a game changer for both our company and our products. Customers can now deploy our flow batteries with greater confidence in securing financing, system operations, and successful performance outcomes."
"We stand firmly behind ESS Inc.'s flow battery technology as a proven solution for long-duration energy storage at commercial and utility scale," said Michael Schrempp, global head of green tech solutions at Munich Re. "Our goal in providing a comprehensive policy is to enable ESS Inc. to expand deployment of its solution at scale globally."