EDISON, NJ, Sept. 13, 2022 (GLOBE NEWSWIRE) — Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos”), a leading provider of safe, scalable, efficient and sustainable energy storage systems based on Zinc, today announced that it has been invited to the due diligence stage of the U.S. Department of Energy’s (“DOE”) Innovative Clean Energy Loan Guarantee Program under the call for tenders on renewable energies and energy efficiency.
The DOE’s Lending Programs Office (“LPO”) invitation to Eos to undertake full due diligence represents a significant step forward in the LPO’s assessment of Eos’ loan application. This step includes LPO performing its due diligence of Eos’ plan to expand manufacturing to support 3 GWh of production capacity. During this stage, Eos and LPO will work on the negotiation of a Term Sheet containing the main conditions of the loan. This work provides the LPO with the basis to advance the loan to conditional commitment. However, the DOE LPO’s invitation to perform due diligence does not guarantee that the DOE will offer a conditional commitment or obtain a loan to Eos under the DOE LPO.
As previously reported, Eos’ loan request supports the company’s strategy to add domestic manufacturing capabilities for the production of its Znyth™ long-duration energy storage systems. Eos’ technology enables utilities, independent power producers and network operators, including independent system operators and regional transmission operators, to more quickly integrate intermittent renewable power generation into the network and will increase the reliability, safety and security of the national electricity grid.
The Company’s backlog stands at $457 million at the end of the second quarter, representing 1.9 GWh of storage expected to be delivered over the next few years. The market opportunity for alternative chemical storage is growing due to increasing supply chain constraints for lithium-ion batteries. In addition, tax credits and other supportive policies contained in recently passed inflation-reduction legislation appear poised to invigorate the market for U.S. cleantech companies and spur domestic investment in manufacturing. Eos’ pipeline of opportunities is approximately 27 GWh with a potential value of $7 billion.
“We are very pleased to enter into the full due diligence process with the LPO,” said Joe Mastrangelo, CEO 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 US-based manufacturing with a focus on developing an American supply chain, which today is 80% American and is expected to reach 90% by the end of the year.
Eos employment has grown significantly over the past two years, from 35 employees to 330 today in Edison, New Jersey, and Turtle Creek, Pennsylvania – areas that have played a pivotal role in the development of the electricity network of the last century. As part of this effort, Eos has developed a clean energy careers program designed to ensure the company has the necessary workforce in the Mon Valley as it expands manufacturing . The company’s manufacturing workforce in Turtle Creek is 50 percent minority, 20 percent veteran, and 20 percent female. The planned manufacturing expansion that would be funded by the DOE loan and other sources of capital would add about 500 additional clean energy careers and, according to a study by the Allegheny Conference on Community Development commissioned by Eos, would support 1,500 jobs in southwestern Pennsylvania. direct, indirect and induced basis. The study also indicates that the planned expansion could contribute more than $392 million to regional economic output and more than $169 million to southwestern Pennsylvania’s gross regional product.
Eos Energy Enterprises, Inc. is accelerating the shift to clean energy with positively ingenious solutions that are transforming the way the world stores energy. Our breakthrough Znyth™ The aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. Safe, scalable, efficient, sustainable – and made in the USA. — it’s the heart of our innovative systems that today offer utility, industrial and commercial customers a proven and reliable energy storage alternative. Eos was founded in 2008 and is based in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.
This press release contains 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 our ability to obtain a loan from the Department of Energy LPO, or our intended 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”, “intend”, “may”, “could”, “plan”, ” possible”, “potential”, “predict”, “project”, “should”, “would” and similar expressions may identify forward-looking statements, but the absence of such words does not mean that a statement is not prospective. Factors that could cause actual results to differ materially from current expectations include, but are not limited to: changes that adversely affect the business in which we engage; our ability to predict trends accurately; our ability to obtain conditional covenant or final loan approval from the Department of Energy; our ability to generate cash, repay debt and incur additional debt; our ability to develop efficient manufacturing processes at scale and accurately predict associated costs and efficiencies; fluctuations in our revenues and results of operations; competition from existing or new competitors; the non-conversion of the firm order backlog into sales; risks associated with security breaches in our computer systems; risks relating to legal proceedings or claims; risks associated with changes in federal, state or local laws; risks associated with potential regulatory compliance costs; risks associated with changes in US 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 described in greater detail in Eos’ latest filings with the Securities and Exchange Commission, including Eos’ latest annual report. ‘Eos on Form 10-K. and subsequent reports on Forms 10-Q and 8-K. Further information about potential risks that could affect actual results will be included in subsequent periodic and current reports and other filings by Eos with the Securities and Exchange Commission from time to time. In addition, Eos operates in a highly competitive and rapidly changing environment, and new risks and uncertainties may emerge that could impact 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 place undue reliance on forward-looking statements and, except as required by law, Eos undertakes no obligation and does not intend to update or revise such forward-looking statements, whether whether as a result of new information, future events, or otherwise.
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