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Print Edition StoriesWednesday, August 5, 2009
DOE grant loss jeopardizes Auburn battery manufacturing site
By Jackie Noblett
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Four New England technology companies received funds from the U.S. Department of Energy this week, but one company that didn’t is now looking at scaling back their plans for growth in Massachusetts.
The announcement — which included $249.1 million in funding for A123Systems Inc., the Watertown maker of lithium-ion batteries, to construct a manufacturing plant for electric vehicle batteries — was a setback for Westborough battery maker Boston-Power Inc. and its plans to build a manufacturing facility in Auburn.
Boston-Power was expecting to receive $100 million in grant money to break ground on the project which would create about 600 jobs. The project is on ice now, despite garnering the support of state leaders and about $9 million in matching funds, said Christina Lampe-Onnerud, CEO of Boston-Power in an interview Wednesday.
“Of course I’m very disappointed that we were not chosen by the DOE for funding,” said Lampe-Onnerud. “We held up our end of the bargain — we’re shovel ready.”
Lampe-Onnerud said Boston-Power is still waiting to hear back on grant funding from the U.S. Department of Defense. Grant awards for that program are likely to be announced in October.
Boston-Power does plan to move forward with expansion of its plants in Taiwan and is not giving up on its effort to make a splash in the vehicle market.
“The decision by DOE does not impact our plans for transportation — it only makes it not possible to do it in the U.S.,” Lampe-Onnerud said.
“We certainly share in Boston-Power’s disappointment today,” said Robert Keough, spokesman for the state Executive Office of Environmental Affairs. “But we expect this will not be the last you hear about this project.”
He also said A123’s windfall could result in as many as 300 jobs for the Bay State.
Besides A123, three other New England companies were a part of the $2.4 billion in grants to fund development of advanced battery and electric drive components manufactured primarily for electric vehicles and transportation. A123 President and CEO David Vieau attended the announcement ceremony with Vice President Joe Biden in Detroit, where the company plans to build its manufacturing plant.
“This grant is another exciting step toward creating an American battery infrastructure, which may reduce our dependence on foreign oil and increase our nation’s energy security,” Vieau said in a statement.
The company was looking for up to $1.8 billion in support from the federal government, although it was not immediately clear whether the company will qualify for additional funding. Other regional award winners include:
H&T Waterbury Inc. of Waterbury, Conn., which will receive $5 million to manufacture aluminum casings for cylindrical battery cells.
SBE Inc. of Barre, Vt., which will receive $9.1 million to outfit a manufacturing plant to build direct current bus capacitors for electric vehicle drivetrain systems.
National Fire Protection Association of Quincy, which will receive $4.4 million to train emergency responders on putting out electrical fires in vehicles.
View the full list of award recipients.
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