U.S. Department of Energy Loan Programs Office Invites Eos Energy Enterprises, Inc. Into Due Diligence
14 September 2022 - 2:42AM
Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos”), a leading
provider of safe, scalable, efficient, and sustainable zinc-based
energy storage systems, today announced it has been invited to the
due diligence stage of the U.S. Department of Energy’s (“DOE”)
Title XVII Innovative Clean Energy Loan Guarantee Program under the
Renewable Energy and Efficient Energy solicitation.
The DOE Loan Programs Office (“LPO”) invitation to Eos to enter
into full due diligence represents an important progression in the
LPO’s evaluation of Eos’ loan application. This stage includes LPO
performing its due diligence of Eos’ project to expand
manufacturing to support 3GWh of production capacity. During this
stage, Eos and LPO will work to negotiate a Term Sheet setting out
the principal terms and conditions of the loan. This work provides
the LPO the foundation to advance the loan towards a Conditional
Commitment. However, the DOE LPO’s invitation to due diligence is
not an assurance that the DOE will offer Conditional Commitment or
secure a loan to Eos under the DOE LPO.
As previously disclosed, Eos’ loan application is in support of
the Company’s strategy to add domestic manufacturing capabilities
for the production of its Znyth™ long-duration energy storage
systems. Eos’ technology allows utilities, independent power
producers, and grid operators including Independent System
Operators, and Regional Transmission Operators to integrate
intermittent renewable power generation more rapidly into the grid
and will increase reliability, safety, and security of the nation’s
electric power grid.
The Company’s orders
backlog stands at $457 million as of the end of
Q2, representing 1.9 GWh of storage expected to be
delivered over the next several years. The market opportunity
for alternative chemistry storage is growing due
to increasing supply chain
constraints for lithium-ion batteries. In addition,
tax credits and other supportive policies in the recently
passed Inflation Reduction Act legislation appear poised to
supercharge the market for American clean tech companies and
boosting domestic manufacturing investment. Eos’ opportunity
pipeline is approximately 27 GWh with a potential value of $7
billion.
“We are very excited to be entering the full due diligence
process with the LPO,” said Joe Mastrangelo, Chief Executive
Officer of Eos. “Our potential partnership with the DOE would help
Eos capture one of the fastest growing opportunities in the clean
energy and energy transition sectors. Eos is at the forefront of
establishing U.S. based manufacturing with a focus on developing a
U.S. supply chain, which today is 80% American and is expected to
reach 90% by year end.”
Eos employment has significantly grown over the past two
years from 35 employees to 330 today
in both Edison, New Jersey and Turtle Creek, Pennsylvania
-- areas that were central to the development of the last
century’s power grid. As part of this effort, Eos
developed a Clean Energy Careers program designed to make
sure the Company has the workforce required in the Mon
Valley as it scales manufacturing. The Company’s
manufacturing workforce in Turtle Creek is 50% minority, 20%
veteran and 20% women. The planned manufacturing expansion that
would be funded by the DOE loan and other sources of capital would
add an estimated 500 more clean energy careers and, according to an
Allegheny Conference on Community Development study commissioned by
Eos, would support 1,500 jobs in Southwestern Pennsylvania on a
direct, indirect, and induced basis. The study also indicates that
the planned expansion could contribute more than $392 million in
regional economic output and over $169 million to Southwestern
Pennsylvania’s gross regional product.
About Eos Eos Energy Enterprises, Inc. is
accelerating the shift to clean energy with positively ingenious
solutions that transform how the world stores power. Our
breakthrough Znyth™ aqueous zinc battery was designed to overcome
the limitations of conventional lithium-ion technology. Safe,
scalable, efficient, sustainable — and manufactured in the
U.S. — it's the core of our innovative systems
that today provide utility, industrial, and commercial customers
with a proven, reliable energy storage alternative. Eos was founded
in 2008 and is headquartered in Edison, New Jersey. For more
information about Eos (NASDAQ: EOSE), visit eose.com.
Forward-Looking StatementsThis press release
includes certain statements that may constitute "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to,
statements regarding our ability to secure a loan from the
Department of Energy LPO, or our anticipated use of proceeds from
any loan facility provided by the US Department of Energy,
statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions. The words "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intends," "may,"
"might," "plan," "possible," "potential," "predict," "project,"
"should," "would" and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Factors which may
cause actual results to differ materially from current expectations
include, but are not limited to: changes adversely affecting the
business in which we are engaged; our ability to forecast trends
accurately; our ability to secure conditional commitment or final
approval of a loan from the Department of Energy; our ability to
generate cash, service indebtedness and incur additional
indebtedness; our ability to develop efficient manufacturing
processes to scale and to forecast related costs and efficiencies
accurately; fluctuations in our revenue and operating results;
competition from existing or new competitors; the failure to
convert firm order backlog to revenue; risks associated with
security breaches in our information technology systems; risks
related to legal proceedings or claims; risks associated with
changes in federal, state, or local laws; risks associated with
potential costs of regulatory compliance; risks associated with
changes to U.S. trade policies; risks resulting from the impact of
global pandemics, including the novel coronavirus, Covid-19; and
risks related to adverse changes in general economic conditions.
The forward-looking statements contained in this press release are
also subject to additional risks, uncertainties, and factors,
including those more fully described in Eos’s most recent filings
with the Securities and Exchange Commission, including Eos’s most
recent Annual Report on Form 10-K and subsequent reports on Forms
10-Q and 8-K. Further information on potential risks that could
affect actual results will be included in the subsequent periodic
and current reports and other filings that Eos makes with the
Securities and Exchange Commission from time to time. Moreover, Eos
operates in a very competitive and rapidly changing environment,
and new risks and uncertainties may emerge that could have an
impact on the forward-looking statements contained in this press
release. Forward-looking statements speak only as of the date they
are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and, except as required by law, Eos
assumes no obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Contacts |
Investors: ir@eose.com |
|
Media: media@eose.com |
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