Wednesday, February 4, 2009

Beacon Power wins $3M Navy energy deal

By Mass High Tech staff

Beacon Power Corp., a Tyngsborough-based power storage technology developer, has signed a deal with the U.S. Naval Sea Systems Command (NAVSEA), potentially worth up to $3 million, to evaluate a flywheel energy storage system for naval surface combatants.

The contract calls for system and component development of NAVSEA’s Integrated Power Systems (IPS) and its energy storage needs for ships; identify potential flywheel use; and create a final design concept outlining flywheel design models. The work itself should generate about $900,000 total for Beacon Power (Nasdaq: BCON), company officials said, while the additional work phases could net another $2.1 million.

The flywheel energy storage technology to be used by NAVSEA enables Beacon Power to combine commercial technology, land-based power grids and government work in spacecraft energy storage into “mini-power grids” on Naval ships, said Beacon Power president and CEO Bill Capp.

NAVSEA has been focused on its IPS in order to build and maintain its all-electric ship program, which must support the ships’ launch systems, weapons and sensor programs and ship-board functions.

Beacon Power announced in December that it had received a commitment for the sale of $4.4 million worth of company warrants through a previously filed shelf registration statement. While investors in the deal were not named, officials said the new funding will be used to finance ongoing operations, including flywheel manufacturing, and the continued development of the company’s frequency regulation facility in New England.