Eos Energy Announces $68.3 Million First Funding from its $303.5 Million Department of Energy Loan Guarantee
Eos Energy Enterprises (NASDAQ: EOSE) has received its first loan advance of $68.3 million from the Department of Energy's Loan Programs Office, representing 80% of eligible costs for the Mon Valley Works expansion project. This funding is part of a larger $303.5 million loan guarantee and marks the first Title 17 battery loan to be funded under the current administration.
The loan covers capital expenditures and operating expenses for Project AMAZE's production expansion. The company's first state-of-the-art manufacturing line has been operational since June 2024, and this funding will support the procurement of a second line. The announcement follows 616 MWh in new customer orders and a partnership with FlexGen targeting a 50 GWh market opportunity.
Eos Energy Enterprises (NASDAQ: EOSE) ha ricevuto il suo primo prestito di 68,3 milioni di dollari dall'Ufficio dei Programmi di Prestito del Dipartimento dell'Energia, rappresentando l'80% dei costi ammissibili per il progetto di espansione del Mon Valley Works. Questo finanziamento fa parte di una garanzia di prestito più ampia di 303,5 milioni di dollari e segna il primo prestito per batterie del Titolo 17 ad essere finanziato sotto l'attuale amministrazione.
Il prestito copre le spese in conto capitale e le spese operative per l'espansione della produzione del Progetto AMAZE. La prima linea di produzione all'avanguardia dell'azienda è operativa dal giugno 2024 e questo finanziamento supporterà l'acquisto di una seconda linea. L'annuncio segue 616 MWh di nuovi ordini da parte dei clienti e una partnership con FlexGen mirata a un'opportunità di mercato di 50 GWh.
Eos Energy Enterprises (NASDAQ: EOSE) ha recibido su primer adelanto de préstamo de 68.3 millones de dólares de la Oficina de Programas de Préstamo del Departamento de Energía, que representa el 80% de los costos elegibles para el proyecto de expansión de Mon Valley Works. Este financiamiento es parte de una garantía de préstamo más amplia de 303.5 millones de dólares y marca el primer préstamo para baterías del Título 17 que se financia bajo la actual administración.
El préstamo cubre los gastos de capital y los gastos operativos para la expansión de producción del Proyecto AMAZE. La primera línea de fabricación de última generación de la empresa ha estado operativa desde junio de 2024, y este financiamiento apoyará la adquisición de una segunda línea. El anuncio sigue después de recibir 616 MWh en nuevos pedidos de clientes y una asociación con FlexGen que apunta a una oportunidad de mercado de 50 GWh.
Eos Energy Enterprises (NASDAQ: EOSE)는 에너지부 대출 프로그램 사무국으로부터 6,830만 달러의 첫 대출금을 받았으며, 이는 몬 밸리 워크스 확장 프로젝트의 적격 비용의 80%를 차지합니다. 이 자금은 3억 3천50만 달러 대출 보증의 일환이며, 현재 정부 하에 자금을 지원받는 첫 번째 타이틀 17 배터리 대출을 의미합니다.
이 대출금은 프로젝트 AMAZE의 생산 확장을 위한 자본 지출 및 운영 비용을 포함합니다. 회사의 첫 번째 최첨단 제조 라인은 2024년 6월부터 운영 중이며, 이 자금은 두 번째 라인 확보를 지원할 것입니다. 이 발표는 616 MWh의 새로운 고객 주문과 50 GWh 시장 기회를 목표로 하는 FlexGen과의 파트너십에 이어 나왔습니다.
Eos Energy Enterprises (NASDAQ: EOSE) a reçu son premier versement de prêt de 68,3 millions de dollars du Bureau des programmes de prêt du Département de l'énergie, représentant 80 % des coûts admissibles pour le projet d'extension de Mon Valley Works. Ce financement fait partie d'une garantie de prêt plus large de 303,5 millions de dollars et marque le premier prêt pour batteries de l'Article 17 financé sous l'administration actuelle.
Le prêt couvre les dépenses d'investissement et les frais d'exploitation pour l'expansion de la production du projet AMAZE. La première ligne de fabrication à la pointe de la technologie de l'entreprise est opérationnelle depuis juin 2024, et ce financement soutiendra l'acquisition d'une seconde ligne. L'annonce fait suite à 616 MWh de nouvelles commandes clients et à un partenariat avec FlexGen visant une opportunité de marché de 50 GWh.
Eos Energy Enterprises (NASDAQ: EOSE) hat seinen ersten Darlehensvorschuss von 68,3 Millionen Dollar vom Amt für Darlehensprogramme des Energieministeriums erhalten, was 80% der förderfähigen Kosten für das Expansionsprojekt Mon Valley Works entspricht. Diese Finanzierung ist Teil einer größeren Darlehensgarantie in Höhe von 303,5 Millionen Dollar und stellt das erste Darlehen für Batterien nach Titel 17 dar, das unter der aktuellen Administration finanziert wird.
Das Darlehen deckt Investitionsausgaben und Betriebskosten für die Produktionsausweitung des Projekts AMAZE. Die erste hochmoderne Produktionslinie des Unternehmens ist seit Juni 2024 in Betrieb, und diese Finanzierung wird die Beschaffung einer zweiten Linie unterstützen. Die Ankündigung folgt auf 616 MWh neuer Kundenbestellungen und einer Partnerschaft mit FlexGen, die eine Marktchance von 50 GWh anstrebt.
- Secured $68.3M in DOE loan funding, first installment of $303.5M total guarantee
- Received 616 MWh in new customer orders
- Partnership with FlexGen addressing 50 GWh market opportunity
- First manufacturing line operational since June 2024
- None.
Insights
The
The financial structure is particularly advantageous - government-backed loans typically offer more favorable terms than commercial financing, improving the company's cost of capital. This funding, combined with the Cerberus Capital Management partnership, creates a robust capital stack for scaling operations. The manufacturing expansion could significantly reduce unit costs through economies of scale, potentially improving gross margins and accelerating path to profitability.
For context, this development positions Eos competitively in the rapidly growing long-duration energy storage market, estimated to reach
The DOE loan approval carries strategic implications beyond mere funding. It represents the first Title 17 battery loan guarantee under the current administration, signaling strong federal support for domestic energy storage manufacturing. This positions Eos advantageously within the Inflation Reduction Act's framework, which emphasizes American-made clean energy solutions.
The FlexGen partnership and substantial order backlog validate market demand for zinc-based LDES systems. These systems offer distinct advantages over lithium-ion batteries for grid-scale applications, particularly in duration and safety profiles. The 50 GWh market opportunity with FlexGen represents approximately
The operational first manufacturing line since June 2024 demonstrates execution capability, while the funding for line 2 expansion suggests confidence in scaling production to meet growing demand. This manufacturing capacity expansion is important as utilities and grid operators increasingly seek long-duration storage solutions for renewable energy integration.
First Title 17 battery loan guarantee to be funded under the current administration after an application and approval process that began in January 2021
TURTLE CREEK, Pa., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Eos Energy Enterprises, Inc. (NASDAQ: EOSE) ("Eos" or the “Company”), America’s leading innovator in the design, sourcing, and manufacturing of zinc-based long duration energy storage (LDES) systems, manufactured in the United States, today announced that it has received the first loan advance from the Department of Energy's (DOE) Loan Programs Office in the amount of
The loan advance covers both capital expenditures and project associated operating expenses incurred as part of the Company's production expansion plans related to Project AMAZE in the Mon Valley Works. These funds support Eos’ ongoing efforts to enhance its operational capacity and further its strategic growth objectives.
“Our first state-of-the-art manufacturing line has been operational since June 2024, and this funding is a significant milestone towards expanding our manufacturing capacity and being able to procure line 2,” said Nathan Kroeker, Eos Chief Financial Officer. “The loan proceeds from the DOE, coupled with our strategic partnership and investment from Cerberus Capital Management, facilitates our growth plans to capitalize on the growing need for long duration energy storage solutions.”
This announcement comes on the heels of 616 MWh in new customer orders and an announced partnership with FlexGen to address a preliminary 50 GWh market opportunity, highlighting the growing demand for American-made long duration energy storage.
About Eos
Eos Energy Enterprises, Inc. is accelerating the shift to American energy independence 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 for 3- to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.
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Forward Looking Statements
Except for the historical information contained herein, the matters set forth in this press release are 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 expected revenue, contribution margins, orders backlog and opportunity pipeline for the fiscal year ended December 31, 2024, our path to profitability and strategic outlook, the tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act of 2022, the delayed draw term loan with Cerberus, milestones thereunder and the anticipated use of proceeds therefrom, the DOE loan and statements regarding the receipt of funds under the DOE loan and the anticipated use of proceeds therefrom, obtaining the requisite approvals from the DOE to receive guarantees under the loan guarantee agreement, our ability to meet the applicable conditions precedent under the loan guarantee agreement, statements that refer to outlook, 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. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected.
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 generate cash, service indebtedness and incur additional indebtedness; our ability to achieve the operational milestones on the delayed draw term loan; our ability to raise financing in the future, including the discretionary revolving facility from Cerberus; risks associated with the credit agreement with Cerberus, including risks of default, dilution of outstanding Common Stock, consequences for failure to meet milestones and contractual lockup of shares; our customers’ ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act; uncertainties around our ability to meet the applicable conditions precedent to any funding under the DOE loan; our ability to continue 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; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; risks resulting from the impact of global pandemics, including the novel coronavirus, Covid-19; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to the adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; risks related to adverse changes in general economic conditions; and other risks and uncertainties.
The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company’s most recent filings with the Securities and Exchange Commission, including the Company’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 the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company 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, the Company 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.
FAQ
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