Beacon Power Receives Department of Energy Approval to Proceed on Second Flywheel Plant
28 Aprile 2011 - 1:00PM
Beacon Power Corporation (Nasdaq:BCON), a leading provider of
fast-response energy storage systems and services to support a more
stable, reliable and efficient electricity grid, today announced
that 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 construction
of the Company's next 20-megawatt (MW) flywheel energy storage
plant, to be located in Hazle Township, Pennsylvania.
In Phase II, Beacon will be allowed to draw up to 95% of the
$24-million Smart Grid grant it was awarded by 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 Department of Energy has reviewed all submitted documents
relating to Phase II and is now formally incorporating the facility
budget into the program plan. After that step is completed, the
grant money will be available to reimburse nearly one-half of
Beacon's expenditures on the approximately $50-million facility.
That final Phase II step by DOE is expected to be complete within
six weeks.
"As we approach completion and full commissioning of our 20 MW
flywheel plant in Stephentown, New York, we're pleased to reach
this milestone for our next facility in Hazle Township," said Bill
Capp, Beacon president and CEO. "This project will create jobs and
provide an economic boost to the area. We're grateful to all who
have helped make this possible - including the Department of
Energy, state legislators and officials, the Public Utility
Commission, and the PJM Interconnection."
The Company also announced that it has filed a universal
registration statement on Form S-3 with the Securities and Exchange
Commission (SEC). If and when the shelf registration statement is
declared effective, it will permit the Company from time to time to
offer and sell up to $100 million of common stock, preferred stock,
debt securities, depositary shares, warrants to purchase any such
securities, units comprised of any such securities, or any
combination thereof in one or more future public offerings.
The registration statement is intended to provide Beacon with
the flexibility to raise capital in the future for use in building
merchant plants, manufacturing additional flywheel energy storage
systems for sale, and funding ongoing operations.
The terms of any offering under the registration statement will
be described in a prospectus supplement filed with the SEC at the
time of the offering. These securities may not be sold, nor may
offers to buy be accepted, prior to the time the registration
statement becomes effective. This press release is not an offer to
sell or a solicitation of an offer to buy, nor shall there be any
sale of securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction. A copy of the prospectus included in the registration
statement may be found under "SEC Filings" in the Investors section
of Beacon's website, located at www.beaconpower.com. A copy of the
final prospectus and prospectus supplement relating to any offering
under the registration statement will also be filed with the SEC
and can be obtained, when available, by contacting James M.
Spiezio, Chief Financial Officer, Beacon Power Corporation, 65
Middlesex Road, Tyngsboro, Massachusetts 01879.
About Beacon Power Corporation
Beacon Power Corporation designs, develops and is
commercializing advanced products and services to support stable,
reliable and efficient electricity grid operation. Beacon's Smart
Energy MatrixTM, now in production, being operated and earning
revenue, is a non-polluting, megawatt-scale, fast-response
flywheel-based solution designed to provide less expensive, more
sustainable and effective frequency regulation services to the
nation's power grid. The Company's business strategy is both to
supply frequency regulation services from its own plants and to
sell systems directly to utilities or grid operators in parts of
North America and selected international markets. Beacon is a
publicly traded company with its research, development and
manufacturing facility in the U.S. For more information, visit
www.beaconpower.com.
Safe Harbor Statements under the Private Securities
Litigation Reform Act of 1995: The Material contained in
this press release may include statements that are not historical
facts and are considered "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements reflect Beacon Power Corporation's
current views about future events, financial performances, and
project development. These "forward-looking" statements are
identified by the use of terms and phrases such as "will"
"believe," "expect," "plan," "anticipate," and similar expressions
identifying forward-looking statements. Investors should not rely
on forward-looking statements because they are subject to a variety
of risks, uncertainties, and other factors that could cause actual
results to differ materially from Beacon's expectation. These
factors include: a short operating history; a history of losses and
anticipated continued losses from operations; the complexity and
other challenges of arranging project financing and resources for
one or more frequency regulation power plants, including
uncertainty about whether we will be able to comply with the
conditions or ongoing covenants of the Federal Financing Bank loan
for our Stephentown, New York, facility; our need to comply with
any disbursement or other conditions under the DOE Smart Grid grant
program; a need to raise additional equity to fund Beacon's
projects and our other operations in uncertain financial markets;
conditions in target markets, such as that some ISOs are taking
longer than others to comply with FERC's requirement to update
market rules to include new technology such as ours, and also such
as that frequency regulation pricing is lower in the short-term
than at many times in the past; our ability to obtain site
interconnection approvals, landlord approvals, or other zoning and
construction approvals in a timely manner; limited experience
manufacturing commercial products or supplying frequency regulation
services on a commercial basis; limited commercial contracts for
revenues to date; the dependence of revenues on the achievement of
product optimization, manufacturing and commercialization
milestones; dependence on third-party suppliers; intense
competition from companies with greater financial resources,
especially from companies that are already in the frequency
regulation market; possible government regulation that would impede
the ability to market products or services or affect market size;
possible product liability claims and the negative publicity which
could result; any failure to protect intellectual property;
retaining key executives and the possible need in the future to
hire and retain key executives; the historical volatility of our
stock price, as well as the volatility of the stock price of other
companies in the energy sector, especially in view of current
conditions in the financial markets generally. These factors are
elaborated upon and other factors may be disclosed from time to
time in Beacon Power filings with the Securities and Exchange
Commission. Beacon Power expressly does not undertake any duty to
update forward-looking statements.
CONTACT: Beacon Investor Relations Contact:
Chris Witty
Darrow Associates
646-438-9385
cwitty@darrowir.com
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