Beacon Gets Phase 2 Goahead For Hazle Township Flywheel Energy Storage Plant
Beacon Power Corporation announced today 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.