Beacon Power Corp., a provider of energy-storage systems, says it has received approval from the U.S. Department of Energy (DOE) under the terms of its Smart Grid Stimulus Grant program to proceed to the second of three phases of funding for the construction of the company's next 20 MW flywheel energy-storage plant, to be located in Hazle Township, Pa.
In Phase II, Beacon will be allowed to draw up to 95% of the $24 million grant it was awarded by the DOE in late 2009. Beacon is currently limited by a Phase I spending cap of 4% of the grant amount. The Phase II funds will be used to pay for project expenses, including material and component procurement, equipment manufacturing and installation, and physical plant construction.
The DOE has reviewed all submitted documents relating to Phase II and is now formally incorporating the facility budget into the program plan, Beacon Power says. After that step is complete, the grant money will be available to reimburse nearly one-half of Beacon's expenditures on the facility, which is expected to cost approximately $50 million. That final Phase II step by the DOE is expected to be completed within six weeks.