Beacon Power Engages Group Robinson to Pursue Financing for Pennsylvania Plant, Develop and Obtain Financing Packages for Tur...
October 06 2011 - 8:45AM
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, announced that it
has engaged the services of Group Robinson, a leading global
advisor and investment banking firm specializing in the clean
technology, energy and infrastructure sectors.
The Group's immediate objective will be to identify and secure
project financing for Beacon's 20 MW flywheel frequency regulation
plant, planned for construction in Hazle Township, Pennsylvania. In
addition, Group Robinson will assist Beacon in developing one or
more lease or build-operate-transfer (BOT) structures for use in
marketing turnkey flywheel plants in non-U.S. locations.
"John Robinson has a long and distinguished track record as a
closer who can find and deliver project financing solutions under
all types of economic conditions," said Bill Capp, Beacon president
and CEO. "Our Pennsylvania plant will bring jobs and other benefits
to the region, as well as help stabilize the power grid and earn
revenue for Beacon. With their proven experience, sector expertise,
and global reach, we're looking to Group Robinson to bring together
the remaining financing that will enable us to begin
construction."
Beacon Power has already secured more than half of the funding
to build the $53-million project, including a $24-million Smart
Grid stimulus grant award from the U.S. Department of Energy and a
$5-million state grant. The Company's first 20 MW flywheel
frequency regulation plant, which has been operational since
January, is located in Stephentown, New York.
Beacon's plant in Hazle Township will provide an essential
grid-stabilizing service known as frequency regulation, by
effectively "recycling" electricity to balance supply and demand on
a moment-to-moment basis. Unlike conventional fossil-fuel
generators that typically provide this service, Beacon's flywheel
technology consumes no fuel, produces zero emissions, and can
perform faster and more cost-effectively.
About Group Robinson
Group Robinson is a leading global advisor with a history of
providing innovative solutions that enable clients to achieve their
strategic and financial goals. Founded in 1991, the firm's core
areas of expertise are in clean technology, transportation,
infrastructure and electrical and thermal energy generation
industries, including domestic and international project and
structured finance. John Robinson, Group Robinson's Chairman and
CEO, has over 30 years of global advisory and financing experience.
He and his associates work closely with top management, boards of
directors and private investors, to facilitate access to capital
that will enable firms to move their business plans and
technologies to the next critical milestone. More information at
www.grouprobinson.com.
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 regulation services to power grids around
the world. The Company's business strategy is both to supply
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. More information at 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 Power
Investor Relations Contact:
Chris Witty
Darrow Associates
646-438-9385
cwitty@darrowir.com
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