U.S. Department of Energy Loan Programs Office Invites Eos Energy Enterprises, Inc. Into Due Diligence
Eos invited into full due diligence after completing Part II loan application process
EDISON, N.J., Sept. 13, 2022 (GLOBE NEWSWIRE) -- 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.
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.
This 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.