A123 Systems and NSTAR to Launch Advanced Energy Storage Pilot
Project to Showcase System and Customer Benefits of Innovative Energy Storage Solutions
December 19, 2011
A123 Systems (Nasdaq: AONE), a developer and manufacturer of
advanced NanophosphateŽ lithium ion batteries and systems, today
announced that it is launching a pilot project with NSTAR to study
and showcase the performance and reliability benefits of
implementing A123’s Grid Storage Battery (GBS) within a suburban
electric grid. The system, NSTAR’s first battery energy storage
project, is proposed for installation at a substation in Medway,
Mass. and is expected to be operational in 2012.
“We’re very interested in learning more about how advanced energy storage can help continue to improve electric service reliability for our customers,” said Lawrence Gelbien, vice president of engineering at NSTAR. “Launching this pilot project with A123 will allow us to gain invaluable hands-on experience with clean, efficient energy storage technology and, ultimately, it will help determine how we can utilize larger-scale energy storage projects on our system.”
Under the terms of the agreement, one of A123’s two-megawatt (2MW) GBS solutions is proposed to be interconnected to the power grid at NSTAR’s substation in Medway. It will be owned and operated by A123, and will be designed to provide area regulation services, which are used to address momentary differences between electric power supply and demand. A123 expects to earn revenue from these area regulation services from ISO-New England (ISO-NE) as part of the Alternative Technology Regulation (ATR) Pilot Program, which allows “non-generating resources” such as advanced energy storage systems to receive compensation for area regulation and other ancillary services. In addition, the pilot project is expected to allow A123 to learn more about how its GBS performs in real-world applications in order to facilitate further product improvements designed to reduce total cost of ownership.
“Working with leading utilities like NSTAR enables us to showcase the economic and operational viability of our advanced GBS solutions and helps to further validate our position as the leading provider of storage technology for electric grid services,” said Robert Johnson, vice president of the Energy Solutions Group at A123 Systems. “We expect that this pilot project will allow us to demonstrate how energy storage can generate revenue for area regulation services. Further, we believe that owning and operating our own real-world storage system will allow us to enhance our product offerings to continue delivering cost-effective, efficient solutions that seamlessly integrate with existing grid infrastructure and technologies.”
About A123 Systems
A123 Systems, Inc. (Nasdaq: AONE) is a leading developer and
manufacturer of advanced lithium-ion batteries and energy storage
systems for transportation, electric grid and commercial
applications. The company’s proprietary NanophosphateŽ technology is
built on novel nanoscale materials initially developed at the
Massachusetts Institute of Technology and is designed to deliver
high power and energy density, increased safety and extended life.
A123 leverages breakthrough technology, high-quality manufacturing
and expert systems integration capabilities to deliver innovative
solutions that enable customers to bring next-generation products to
market. For additional information please visit www.a123systems.com.
About NSTAR
NSTAR is the largest Massachusetts-based, investor-owned electric
and gas utility. The company transmits and delivers electricity and
natural gas to 1.4 million customers in Eastern and Central
Massachusetts, including more than one million electric customers in
81 communities and 300,000 gas customers in 51 communities. For more
information, visit www.nstar.com.
Safe Harbor Disclosure
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that
are subject to risks, uncertainties and other factors. Among the
factors that could cause actual results to differ materially from
those indicated by such forward-looking statements are: the
performance, reliability and expected benefits of A123’s products
for area regulation services, delays in customer and market demand
for area regulation services , delays in NSTAR’s area regulation
services project, delays in the implementation of A123’s solutions
at such project and the project’s generation of revenue, delays in
the development, production and delivery of A123’s area regulation
service products and solutions, the ability of the project to
facilitate future product improvements, adverse economic conditions
in general and adverse economic conditions specifically affecting
the markets and geographies in which A123 and NSTAR operate and
other risks detailed in A123 Systems’ quarterly report on Form 10-Q
for the quarter ended September 30, 2011 and other publicly
available filings with the Securities and Exchange Commission. All
forward-looking statements reflect A123’s expectations only as of
the date of this release and should not be relied upon as reflecting
A123’s views, expectations or beliefs at any date subsequent to the
date of this release.
