US$137.4 million worth of customer orders have been booked so far this year by Eos Energy Enterprises and the zinc hybrid cathode battery storage company said that figure could reach US$300 million by the end of 2021.
Reporting its Q3 2021 financial results, the US-based manufacturer said that booked orders in the year-to-date amount to 561MWh of its proprietary battery and storage system technology, called Znyth. This is part of a total backlog of 613MWh, worth US$151.8 million and split between 30 projects for 16 different customers, according to the company.
It will be a while however before those numbers turn into revenues and with only US$3.4 million of product shipped this year as of 10 November, Eos reaffirmed its full-year 2021 revenue guidance of US$5 million.
In August, the company’s CEO Joe Mastrangelo had said the reason for downgrading from a previously stated US$50 million 2021 revenue target had been due to project delays, largely as a result of COVID19. At that time, Eos reported its total order backlog at the end of Q2 2021 had stood at 389MWh, about US$96 million.
Eos, which has been reporting its financial results since it got its NASDAQ listing in November last year, guided expected bookings for the full year to be between US$175 million and US$300 million. CEO Mastrangelo said yesterday the reason for the wide range there is due to “timing risk in our pipeline”.
“Like many in our industry, Eos has not been immune to the macro headwinds related to labour and cost inflation and global supply chain constraints, which have contributed to project delays for energy storage projects,” Mastrangelo said.
Eos is targeting the long-duration energy storage market with its batteries, which are three-hour duration units that can be stacked to provide up to 12 hours of storage. They are designed to be usable for 20 years with no degradation of the cells and then recyclable on decommissioning.
A week ago, it was announced at the COP26 climate talks to be one of the founder members of a new CEO-led international Long Duration Energy Storage Council.
300MWh order secured with EPC Blue Ridge Power
The vast majority (91%) of its backlogged bookings to date are in the front-of-the-meter market segment, 559MWh of the 613MWh total. As that might imply, large projects dominate that backlog, with 519MWh of orders for projects of more than 20MWh capacity.
Solar energy integration is the most common use case for Eos’ customers, with 314MWh versus 214MWh of transmission and distribution (T&D) investment deferral or locational capacity projects and 58MWh of microgrid project orders.
Eos is rapidly ramping up production capacity, from 65MWh annual production output capacity in 2020, to 260MWh this year and 800MWh+ by the end of next year. In October the company secured a US$25 million equipment financing agreement with Trinity Capital to scale production and improve its manufacturing operations. This was on top of a US$100 million investment commitment from Koch Industries venture capital subsidiary Koch Strategic Platforms announced in July.
The third iteration of its zinc battery units will undergo performance testing from Q1 2022, with Eos claiming it will be a third the size of its current models, having the same voltage profile at lower temperatures, lowering manufacturing, system integration and operating costs.
“The demand for longer duration energy storage applications continues to grow, and the benefits of our technology, including the low cost of ownership, scalability, safety and operational flexibility, have continued to resonate in the marketplace,” Mastrangelo said.
Yesterday, as well as reporting its quarterly results, Eos also said that it has just received the biggest order in the company’s history, from solar engineering, procurement and construction (EPC) firm Blue Ridge Power.
Over the next two years Blue Ridge Power will purchase 300MWh of Eos Znyth battery energy storage systems (BESS) for deployment at multiple projects, beginning with a site owned by developer Pine Gate Renewables.