Energy storage company ESS Tech (NYSE: GWH) and Honeywell (NASDAQ: NASDAQ:HON) announced a strategic collaboration on Tuesday, September 26, 2023, to advance the development and market adoption of iron flow battery (IFB) energy storage systems. As part of this collaboration, Honeywell has made an investment in ESS Tech.
The partnership builds upon each company's development of energy storage systems, combining ESS's patented IFB design with Honeywell's advanced materials and energy systems expertise. Eric Dresselhuys, CEO of ESS, stated that the combination of their innovative technology with Honeywell's storage and control system expertise would drive the clean energy transition and deliver value to their customers, shareholders, and communities.
The collaboration aims to meet the growing global demand for long-duration energy storage (LDES), driven by the rapid increase in renewable power generation. This is creating a substantial and fast-growing market as countries worldwide transition to zero carbon energy. The current global energy storage market is estimated to be $50 billion per year and is forecast to grow significantly with a cumulative investment of up to $3 trillion by 2040, according to the LDES Council and McKinsey&Co.
ESS Tech is working on iron flow battery systems that could solve the problem of how to use solar energy, for example, to light up houses overnight. The company's tech uses abundant resources including iron, salt, and water for utility-scale energy storage applications.
On September 25, news about the collaboration sent shares of ESS Tech up as much as 20%. Investors have shown enthusiasm about the potential impact this partnership could have on advancing renewable energy solutions.
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