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Print Edition StoriesTyngsborough-based Beacon Power Corp., which makes flywheel-based power storage systems, has signed a new contract with American Electric Power Co. Inc., a large utility based in Ohio.
Under terms of the deal, Beacon Power (Nasdaq: BCON) will build and deploy a 1-megawatt Smart Energy Matrix regulation facility at an American Electric Power (AEP) facility in Groveport, Ohio, operated by AEP operating subsidiary, Columbus Southern Power Co. The construction of the device will be done at Beacon Power’s expense, while AEP will provide and install the interconnection infrastructure.
AEP has already completed the necessary system impact study and executed an interconnection agreement, according to a company statement. Installation of the Smart Energy Matrix is scheduled to begin in the middle of this year.
The system is expected to provide flywheel-based frequency regulation services for the local grid. Once installed, Beacon Power will earn commercial revenue from the system. Financial terms of the deal were not provided.
The deal also comes on the heels of an $18 million funding announcement from Beacon Power last week that has investment group Seaside 88 LP buying $1 million worth of Beacon Power stock each month for 18 months.
Founded in 1997, Beacon Power spun out of Boston-based SatCon Technology Corp.’s Energy Systems division. In 2000, the company went public and in 2007 reported $1.4 million in revenue on a $13 million loss. In the third quarter of 2008, the company reported $4,000 in revenue, with a net loss of $5.6 million. Officials have not yet filed earnings for the fourth quarter or the annual report for 2008.
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