Energy
Beacon's $43 Million Loan, Possible Game-Changer (BCON)
Published:
Last Updated:
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 will 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.
The company also noted that 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 in the “Electricity Delivery and Energy Reliability” category.
Beacon shares are up almost 20% now at $0.94 on over 3.1 million shares (1.5-times total daily volume). Its 52-week range is $0.32 to $1.97 and its new post-news market cap is $108 million.
Jon C. Ogg
July 2, 2009
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
