Tyngsboro, Mass.-based Beacon Power Corp. has received a conditional commitment from the U.S. Department of Energy (DOE) for a loan guarantee of approximately $43 million.
The DOE's offer outlines terms for a loan that would finance more than 60% of Beacon's planned 20 MW flywheel-based energy-storage plant to be located in Stephentown, N.Y. The plant, which will provide frequency regulation services, will help stabilize and enhance the performance of the grid.
The loan, which would be funded by the U.S. Treasury's Federal Financing Bank, is expected to provide debt financing for 62.5%, or $43 million, of the estimated $69 million total project cost.
Approximately $50 million of this total cost is direct equipment and facility costs. Beacon's equity contribution of roughly $26 million will be provided by a combination of cash, in-kind assets, and other eligible project costs. Before the loan can be closed, the DOE's conditional commitment is subject to negotiation and completion of a number of contracts and conditions.
‘Beacon Power's electricity-storage system is exactly the type of technology the nation needs to meet the clean energy goals essential to a safe and sustainable future,’ says Sen. Edward M. Kennedy, D-Mass. ‘With this strong support from the Department of Energy, this groundbreaking company will help lead the way forward.’
SOURCE: Beacon Power Corp.