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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,
About this update from Eos Energy Enterprises, Inc.
[{"type":"text","content":"Eos invited into full due diligence after completing Part II loan application process\nEDISON, 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 ex...