CEO replaced at US iron flow battery maker ESS Tech

US-based long-duration energy storage manufacturer ESS Tech, Inc. has announced the departure of its chief executive officer.

Amid the policy turmoil which has accompanied the onset of Donald Trump’s second term as US President, including executive orders aimed squarely at the clean energy incentives granted under predecessor Joe Biden’s Inflation Reduction Act, Eric Dresselhuys has resigned as ESS Tech CEO, it was announced on Friday.

A statement issued by the Oregon-based iron flow battery manufacturer said ESS Tech’s “intent to take the business in a new strategic direction” would see the long-duration energy storage (LDES) company focus on providing 12- to 24-hour energy storage to provide baseload power for the huge energy demands of artificial intelligence-driven data centers.

ESS said it is bidding on such projects with the aim of beginning installations in 2027.

The shift to a significant increase in computing demand from data centers across the globe is also driving electricity demand. Long-term load forecasts from utilities, states, and countries, are factoring in advanced chips requiring more energy and cooling, as new data centers become more demand dense. Pennsylvania’s grid operator, PJM, forecast more demand than expected throughout its report, with “growth in data center load” regularly attributed as a cause.

PPL, a utility supplying a region in Pennsylvania, said it expected to see its summer peak load demand jump more than 60 percent by 2030.

However, major data center users and operators are aiming to meet corporate net-zero promises and goals to reduce their greenhouse emissions, despite increased energy loads.

New interim CEO

As part of the executive reshuffle, Dresselhuys will be replaced, on an interim basis, by ESS Tech vice president of legal Kelly Goodman. The temporary CEO will be supported by chief financial officer Tony Rabb and executive vice president of engineering Ben Heng.

ESS Tech chair Harry Quarls, quoted in the company statement, said, “On behalf of the board, I thank [former CEO] Eric for his leadership at ESS, during which time ESS grew its market share for long duration storage, commercialized new product innovations, established an automated manufacturing line, and introduced new efficiencies into the company’s operations. As we look to the next phase of ESS and the opportunities in the long duration storage market, we are confident that Kelly, Tony, and Ben will work to best position ESS to enter its next stage and maximize value for shareholders.”

Kelly Goodman, interim CEO of ESS, said: “ESS continues its work to accelerate manufacturing of energy storage technology made here in the United States, and we are excited about the new opportunities arising from AI and data center driven load growth. This vision continues to inspire and drive the important work we do every day, and I am pleased to lead the ongoing efforts to provide safe, sustainable, long-duration energy storage.”