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Axion Power Battery Energy Storage System xion Power International used a grant from the Pennsylvania Economic Development Authority (PEDA) to create its PowerCube ™. The PowerCube ™ is a 0.5 megawatt battery energy storage system that uses Axion's patented PbC battery. A The PowerCube ™, located at Axion's Clover Lane facility in New Castle, Lawrence County, is currently utilized to participate in the PJM Frequency Regulation Market, which serves 58 million people in all or parts of 13 states and the District of Columbia. Axion Power, working in partnership with Philadelphia-based Viridity Energy on this and other projects, initially participated in the PJM market as a 100 kw resource but will soon be ramped to higher kw levels. The use of PowerCubeTM on the PJM market marks the first time an external energy storage system has been integrated into a major power grid. The PowerCube ™ utilizes Axion's patented PbC battery technology, Axion's proprietary Battery Management System (BMS), seismic rated battery racks, a 0.5 MW inverter, HVAC system, fire suppression system, and a hydrogen/hydrogen sulfide gas monitoring system. The PowerCube ™ technology has other applications in the market, particularly in environmentally friendly transportation including: hybrid electric switcher locomotive, hybrid OTR trucks and grid based energy storage systems. Axion's project began in December 2009 and was completed in June 2010. It cost a total of $800,801, including a $248,650 PEDA grant. Axion develops, designs, manufactures and sells advanced energy storage batteries based on its patented PbC Technology™ and energy storage systems. Pennsylvania Energy Development Authority 0120-FS-DEP4516 2/2016 G1595