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Alevo USA Inc.SCAMPS

June 12, 2017Hilton Head, South Carolina

Energy Storage is the Glue that Holds the Grid Together

Electric Grid FromThomas Edison to mid-2000s

Power Grid of the Future

• Electricity flows in multipledirections

• Internet enables greater customercontrol over usage (NEST)

• Technology enables electriccompanies to increase efficiencyand keep costs down

• Electricity flows one way

• Little customer control over usage

• Electric companies and regulatorstolerate inefficiency in order tomaintain reliability

Alevo’s Timeline of Innovation

2013Alevo acquires inorganic IPand hires lead scientists whohad been developing thistechnology since 2004.

2009AlevoIncorporated

2014Alevo leases manufacturing

facility in Concord, NC

Alevo aquires DSI andrenames to Alevo Analytics

Built world’s largestHPC/SMP SuperComputer

2015Began building firstGridBank production line.

Electrolyte compositionprotection patent issued.

Alevo Analytics acquires firstcustomers.

2010Alevo develops GridBank

Battery Energy Storageconcept using data to

solve utility ineffeciencies.

2012Alevo works with

Germany R&D andParker on GridBank

desgn and specifications

2016First GridBank

deployment agreementspublicly announced.

2017First GridBank delivered in

Hagerstown, MD

2011Data Scientia (DSI) beginsgrid intelligence datacollection for Alevo.

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Ground Breaking Li-Ion TechnologyThe first inorganic Lithium-Ion battery, developed over adecade, non-flammable, with up to 10 times the cycle lifeof conventional Lithium-Ion batteries

Alevo EnergyVertically Integrated ManufacturingElectrolyte manufacturing, battery manufacturing,GridBank™ ESS assembly, systems integration, andproject development

Alevo AnalyticsProprietary Grid AnalyticsActionable business intelligence regarding where and howto deploy energy storage solutions to make the biggestimpact on the grid

A multi-national company with its manufacturing hub in Concord, N.C.

Concord, North Carolina, United StatesAlevo Battery & GridBank Manufacturing

Bruchsal, GermanyAlevo Battery Technology R&D

Martigny, SwitzerlandAlevo HQ & Electrolyte Production

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Alevo Batteries vs Other BatteriesAlevo Battery Technology provides unique characteristics never before seen in Lithium-Ion batteries

Alevo Battery TechnologyInorganic Lithium-Ion Battery

Other Battery CompetitorsOrganic Lithium-Ion Battery

NON-FLAMMABLEIndependent sources have confirmed thatinorganic electrolyte cannot be ignited. 1

HIGHLY FLAMMABLEOrganic electrolytes are hydrocarbon based

which makes them inherently flammable. Manyfailure modes can lead to ignition.

STABLE, PREDICTABLEInorganic chemistry remains stable over time.

Behavior highly predictable. 2

UNSTABLE, UNPREDICTABLEInherent reactivity of organic materials means that

chemistry changes over time. Unpredictable.

HIGH POWERHigh concentration of lithium-ions. Electrolyte has10X higher conductivity than organic systems. 3

LOW POWEROnly low concentration of lithium ions.

Electrolyte has low conductivity.

STABLE RESISTANCEHigh stability of electrolyte leads to stable resistance

over use and time – cells retain their high powercapability even after 50,000 cycles. 4

INCREASING RESISTANCEDegradation of electrolyte over time leads to

increasing resistance and loss of power capability.

1 Verified by Prof. Walter van Schalkwijk2, 3, 4 ABT laboratories, externally validated by Walter van Schalkwijk, PhD, University of Washington

Non-Flammable Lithium-Ion ElectrolyteAlevolyte™ Inorganic Electrolytevs Brand X Organic Electrolyte

Images from demonstration video

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Alevo GridBank Enclosure Configuration

8 cells per module

2 trays per shelf

10 shelves per rack

4 modules per tray

22 RACKS INEACH GRIDBANK

BATTERY CELL

BATTERYMODULE

BATTERY TRAY

440 Trays

1,760 Modules

14,080 Cells

220 shelves

Totaling: 2MW / 1 MWh

22 racks per GridBank

GridBank pictured with Parker Hannifin Inverter

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Non-flammable, highly durable and high power chemistry

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21st Century Manufacturing

Cell & Module AssemblyII

Sorted and stacked electrodes are brought upstairsto cell and module assembly. This station is madeup of 7 major steps.

IV V VIIII Module Fill Formation & AgingTray Assembly GridBank Assembly

During the fill process, each cellin the module is filled withAlevolyte.

Formation & Aging is a 7 stepprocess that takes 2 weeks tocomplete.

Four modules are secured andwired to tray and prepared forGridBank assembly.

Completed parts are installed into empty GridBanks.

Alevo employs over 200 at its Concord manufacturing plant.Alevo plans to hire 200 more employees and invest $300 million over next five years.

Electrode ManufacturingI

Anode and Cathode Electrode consists of mixing,coating, blanking, and welding.

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Alevo’s First Battery Installed for Frequency Regulation in PJM

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2 MW / 1 MWH battery installed for

frequency regulation in PJM

Installed behind the meter in Hagerstown,

Maryland, in a partnership with Hagerstown

Light District

Alevo will install another 10 MW / 5 MWH

spread across two more Hagerstown

substations

Remotely managed

Energy Storage Use Cases

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Time Shifting to Firm Renewable Energy

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• Peaks in power prices can be shaved.

• Energy can be stored during low Demand Period anddelivered when needed.

• Energy production from renewables shifted to premium priceperiods.

This exclusive usecase underutilizesthe benefits ofstorage

Energy Storage Use Cases

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Bulk Power

• Time Shifting Energy

• Frequency Regulation

• Voltage Support

Grid Services (T&D)

• Resource Adequacy

• Power Quality

Customer Services (Behind the Meter)

• Peak Shaving

• Backup Power

BulkPower

GridServices

CustomerServices

Higher PowerPlant

Efficiency

DeferredInvestment

Control andConvenience

AEP Texas Proposes Energy Storage in Lieu of Distribution Upgrades

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Woodson Upgrade Paint Rock

Fully maximizing the utility of the batterywould be to consider how energy storage couldrelieve an overloaded substation and provide other benefits when it is not needed.

Proposed installing a 1 MW/ 2 MWHbattery at a cost of $1.6 million

Project would be in lieu of building a newtransmission line and substation or theconstruction of a new distribution linewhich range in cost from $6.0 million to$17.2 million

Proposed a 500 kW / 1,000 kWh battery ata cost of $700,000

The battery enables the company to forgoa $5.3 million substation upgrade for atleast the utility’s 10-year planning horizon

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Massachusetts State of Charge Report1

Identified Grid BenefitsShare ofSavings

Time shift energy 12%

Reduced Need for PeakingPower Plants

48%

Ancillary services costreduction

9%

Reduced power plantramping

9%

Avoided T&D 13%

Improved renewablesintegration

10%

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Bay State policymakers Sept. 16 said a600 MW procurement target by 2025would lead to $800 million in ratepayerbenefits

The study identified $2 in benefits forevery $1 in costs at a full deployment of1,766 MW (15% of peak)

A widespread storage deployment iscost effective Lower peak Better generator heat rates and fewer

emissions Reduced cost to integrate renewables Increased grid flexibility and resiliency Deferred capital investments

Notes1. http://www.mass.gov/eea/docs/doer/state-of-charge-report.pdf

APPENDIX

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GridBanks Optimize the Entire GridAlevo is the Swiss Army Knife for the grid with tools that offer flexibility across the entire electricity supply chain

Value Proposition

Revenue Producing

Cost Saving

Increases Grid Reliability

Preserving Legacy Assets

GENERATION

Reduces GHGs, Water andFossil Fuel Consumption

TRANSMISSION DISTRIBUTION CONSUMPTION/DG

GridBanks are EnergySource Agnostic

Solar

Wind

Coal

Oil/Diesel/Gas

Nuclear

GridBanks Offer aRange of Services

Ancillary Services

Peak Shaving

Renewables Integration

T&D Deferral

Backup Power

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Alevo Service ApplicationsGridBank ESS can fulfill a broad spectrum of service applications for the grid specializing in 2 or more cycles per day

Alevo Power ZoneApplications less than 60minutes. Alevo GridBanks areideal for this “heavy lifting” zone.GridBanks can deliver multiplehigh power cycles, multiple timesa day.

Alevo Energy ZoneApplications up to 2 hours. Whilecapable of longer durations, theGridBank’s value proposition ishighest between 20 millisecondand 2-hour applications.

GridBanks are ideally suited for high power applications, delivering high power within 60-minute intervals multipletimes through the day without overheating or shortening their power output or cycle life.

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Alevo to build and operate first energy storage project in Georgetown,Texas.

Georgetown is first to procure 100% of its energy from renewables.

Installation will provide fast response regulation services (FFRS).

Project is an important milestone in evolution of the Texas market.

Alevo will provide ongoing management and Operations andMaintenance services.

Currently Announced GridBank DeploymentsIn 2016, Alevo publicly announced 2 installation projects in Lewes, Delaware and Georgetown, Texas

8 MW / 4 MWhLewes, Delaware, USA

10 MW / 3 MWhRabbit Hill- Georgetown, Texas, USA

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Alevo is working closely with the City of Lewes Board of Public Works onrepurposing a retired oil-fired generator building.

Goal is to manage and improve capacity and transmission and to betterintegrate wind and solar.

Marks largest energy storage system in Delaware.

Lewes is ranked 10th in USA for solar penetration.

“The installation of the 8 MW battery will provide a significant tool to manageour capacity charges, our peak demands and transmission charges, and weanticipate it to be a boon for the citizens of Lewes.” -Mayor of Lewes

U.S. Energy Storage Policy Focus Areas

Policymakers interested instorage due to versatility andflexibility it affords

Energy storage alleviates theneed to “overbuild” theelectric grid• Makes power plants more

efficient• Lowers peak demand• Postpones T&D investment• Enhances power quality

“A More Efficient, MoreCost-Effective Grid”

Nevada

Arizona

Oregon

Hawaii

New York

Massachusetts

Maryland

Texas

New Jersey

California

FERC / Regional Transmission Organizations

VerticallyIntegrated

T&D Only

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Alevo Energy Overview

BATTERY MANUFACTURERS

PROJECT DEVELOPERS SYSTEM INTEGRATORSALEVO ECOSYSTEM

• Battery Manufacturer – Manufactures batteries which can be integratedand utilized for energy storage.

• Project Developer - Manages the development process of anEnergy Storage Deployment by securing sites - doing the EPC(engineering, permitting, contracting) and possibly managing them.

• System Integrator - Builds Battery Energy Storage Systems and integratesthe various components, e.g. Inverters, Batteries & Battery ManagementSystem.

ECO SYSTEM

Alevo separates itself from the competition byimplementing the only vertically integrated,turn key lithium-ion energy storage solution.

All Systems Designed To Communicate Together

Reduces Failures

Saves Time

Turnkey Operation Lowers Costs

Benjamin Y. LoweDirector, Policy and Market DevelopmentBen.Lowe@Alevo.com(704) 260-7405 (office)(704) 792-8797 (mobile)

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