Massachusetts, United States [RenewableEnergyWorld.com] Beacon Power Corporation has received a conditional commitment from the U.S. Department of Energy (DOE) for a loan guarantee of approximately US $43 million. The DOE’s offer outlines terms for a loan that would finance more than 60% of Beacon’s planned 20-megawatt (MW) flywheel-based energy storage plant to be located in Stephentown, New York. 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.
“This loan guarantee is an example of how the federal government and Massachusetts technology pioneers like Beacon Power can create a partnership between government and industry to solve the greatest global challenge of the 21st century,” Massachusetts Senator John Kerry (D-MA) said.
Out of 143 pre-application submissions in late 2007, Beacon’s 20-MW energy storage plant was one of just 16 projects invited to submit a full application for loan guarantee consideration. Of these 16 projects, Beacon’s was the only one selected by DOE in the “Electricity Delivery and Energy Reliability” category.