Beacon Power Assets to be Sold to Rockland Capital
Rockland Capital, a private equity firm focused on energy-related investments, will acquire Beacon Power Corporation’s 20-megawatt flywheel energy storage plant in Stephentown, NY, and most of the other assets of the company, based on its offer made February 3, 2012, in accordance with the process negotiated with the Loan Program Office of the U.S. Department of Energy (DOE).
Rockland Capital was the successful acquirer among several leading energy and technology firms that vied for the opportunity following Beacon’s Chapter 11 bankruptcy filing on October 30, 2011.
Under terms of the agreement and subject to court approval on February 7, 2012, Rockland will purchase substantially all assets of Beacon Power and its Stephentown subsidiary, for a combination of cash and a promissory note totaling $30.5 million, along with additional guarantees and funding obligations to DOE of $6.6 million. Rockland’s purchase includes all assets of the company’s 20 MW flywheel regulation plant in Stephentown; all assets in Beacon’s Tyngsboro headquarters including the intellectual property, inventory, spare parts, and equipment; assumption of an amended property lease in Tyngsboro to enable continuing operations; and many of the contracts associated with operation of the business.
The acquired assets and agreements will be placed into a new private company named Beacon Power LLC, wholly owned by Rockland, which will rehire a majority of the current Beacon staff into the new company. Rockland also intends to provide the necessary equity capital to develop a second 20 MW flywheel regulation plant in Pennsylvania. In addition to approval by the bankruptcy court, the Federal Energy Regulatory Commission must approve the sale of the Stephentown assets.
Scott Harlan, managing partner for Rockland Capital, said, “We were attracted to Beacon Power because of its effective fast-response, grid-connected energy storage technology and its successful experience applying this technology as a frequency regulation resource in Stephentown. With the implementation later this year of FERC-mandated pay-for-performance compensation for balancing services provided to the grid, both the Stephentown plant and the one we plan to build in Pennsylvania will realize much improved revenue. We’re pleased to make it possible for this company and its talented team to continue to innovate and grow, and to provide a runway to facilitate a path to commercial success.”
The sale of Beacon’s Stephentown plant and other assets was organized and conducted by Beacon’s financial advisors, CRG Partners, and legal counsel, Brown Rudnick LLP.
Beacon Power Corporation designs, develops and is commercializing advanced products and services to support stable, reliable and efficient electricity grid operation.