Courtesy of Jon C. Ogg of 24/7 Wall Street
This morning we caught an alert for volume and trading activity at VSInvestor.com in Beacon Power Corporation because of a government award of a loan commitment. This has now been confirmed. Beacon announced that it has received a conditional commitment from the Department of Energy for a loan guarantee of approximately $43 million. Keep in mind that this is subject to negotiation and completion of a number of contracts and conditions.
The Department of Energy’s offer outlines terms for a loan that would finance more than 60% of Beacon’s planned 20-megawatt flywheel-based energy storage plant to be located in Stephentown, New York. The plant will provide frequency regulation services and will help stabilize and enhance the performance of the grid. In addition, plant is said to have an emission-free operation to reduce CO2 level compared to fossil fuel-based regulation methods used today.
The U.S. Treasury’s Federal Financing Bank is funding the loan and would provide debt financing for about $43 million of the estimated $69 million total project cost. The company noted that roughly $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. Continue Reading
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