Zinc-based battery energy storage system provider Eos Energy Enterprises has secured a US$85 million loan facility with Atlas Credit Partners (ACP).
The money will be used for expanding Eos’ manufacturing capacity, developing the next generation of its energy storage systems and services and for general corporate purposes, it said.
The financing from ACP, a private credit fund, consists of a four-year, non-amortising term loan with a variable interest rate of SOFR (Secured Overnight Financing Rate) plus 8.5%. The agreement also allows Eos to make a one-time request for another US$15 million subject to lender consent.
Joe Mastrangelo, Eos CEO, said: “This capital allows us to fast-track our manufacturing capacity expansion to accelerate the shift to clean energy and to deliver against our $460 million orders backlog.”
It builds on a US$200 million funding commitment the company recently received from one of its finance partners, as reported by Energy-Storage.news.
The company’s order backlog now stands at 1.9GWh, of which a big chunk is a recently-expanded multi-year master supply agreement with renewable energy EPC and developer Bridgelink Commodities for the ERCOT market.
The core of the company’s battery energy storage system solutions is its Znyth (zinc hybrid cathode) brand battery, which is stacked into systems offering a duration of between three and 12 hours. Its Energy Block solution offers up to 10MW of power while the Power House starts at 10MW.
The vast majority (90%) of demand for the company’s solution is from within the US. As Energy-Storage.news reported recently, it is undergoing a 550MWh expansion of the manufacturing capacity of its Pittsburgh plant, of which 65MWh was completed in quarter one 2022.
Drew Mallozzi, managing partner of ACP, added: “The Company (Eos) has a proven technology with a strong management team and is building a capital efficient and scalable manufacturing model that ACP believes is poised to capture one of the largest secular growth opportunities that we have identified in the energy industry.”