Hi guys, lucky for me, GWH came onto my radar two weeks ago when I was looking into the plans for Sun Cable, an Australian plan to provide up to 15% of Singapores daily electricity needs via massive solar farms and an undersea cable.
The main challenge with renewables at the moment is battery storage. Renewables are now the cheapest power source available but face massive constraints in the form of consistent supply and grid smoothing. Lithium ion mega storages are currently the answer but have many drawbacks. High fire risk, 4 hour max storage, fast degradation, high price, environmentally damaging disposal and need for cooling.
Enter ESS storage ($GWH) an iron flow battery made of Iron and electrolytes and salt water. Iron flow batteriy is a type of electrochemical cell where chemical energy is provided by two chemical components dissolved in liquids that are pumped through the system on separate sides of a membrane.[2][3] Ion exchange (accompanied by flow of electric current) occurs through the membrane while both liquids circulate in their own respective space. (wikipedia)
ESS could be the future for renewable storage and billionaire backers like Bill Gates are all over the future tech (https://www.cnbc.com/2021/10/11/ess-battery-company-backed-by-bill-gates-softbank-opens-on-nyse.html). It has a very reasonable 70% round trip efficiency, meaning it loses 30% of the power you put into it.
ESS has a few advantages over lithium ion; No need for cooling so can be used in hot environments like Texas, Australia, California. Extremely cheap source materials. Storage up to 10 hours. 20,000 cycle life and NO storage degradation versus 5000 cycle life for lithium ion.
The downside I can see for this stock are new battery techs stealing market share. Slow adoption of renewables. Or potentially extreme price drop in lithium ion cost, tech or safety.
I am long on this stock
Something curious I noticed this morning is GHW had a high short borrow fee (130%) whilst there are only 4.3 million shares available for public trading due to 180 day lockup(https://www.reddit.com/r/SPACs/comments/q6c8gl/gwh_ess_tech_backed_by_bill_gates_and_me_started/). GWH has already squeezed once. The reason GWH squeezed initially is because a lot of people are shorting SPACs as they have fallen out of favour to investors recently AND GWH had a high redemption of shares (bailing out of the SPAC)
I am long on this company so squeezes do not interest me too much but it is something to note.
Submitted October 15, 2021 at 10:22AM by OfficerCHODEMAN https://ift.tt/3lKcigZ
