in News Departments > New & Noteworthy
print the content item

A second company that received a U.S. Department of Energy (DOE) loan guarantee has filed for bankruptcy. Following on the heels of Freemont, Calif.-based solar company Solyndra LLC, Beacon Power Corp., a Tyngsboro, Mass.-based energy-storage firm, filed papers yesterday in U.S. Bankruptcy Court in Willmington, Del., after failing to raise private funds, Bloomberg Business reports.

"The current economic and political climate, the financing terms mandated by the DOE, and Beacon's recent delisting notice from Nasdaq have together severely restricted Beacon's access to additional investments through the equity markets," F. William Capp, CEO of Beacon, said in the filing papers, according to Bloomberg.

Earlier this month, Beacon Power received a Nasdaq notice of minimum bid price noncompliance. The company was given 180 calendar days, or until March 28, 2012, to regain compliance.

Beacon Power energized and interconnected 8 MW of flywheel-based energy storage at its first frequency-regulation plant in Stephentown, N.Y., in January. The flywheel systems were designed to provide frequency-regulation services to help stabilize and enhance the performance of the New York power grid and enable the greater use of renewable energy sources, according to Beacon Power.

In August 2010, the company announced that it had closed on a $43 million loan guaranteed by the DOE for the Stephentown plant.

The DOE's loan-guarantee program, which was created to encourage alternative energy development, has come under fire from lawmakers since Solyndra LLC, which received a $535 million loan guarantee, filed for bankruptcy in August.

The U.S. House of Representatives began an investigation in September into whether Solyndra and the Obama administration engaged in wrongdoing when the loan guarantee was offered to the company in 2009.

Earlier this month, Beacon Power announced that it had hired Group Robinson, a global adviser and investment banking firm specializing in clean technology, to secure project financing for Beacon's 20 MW flywheel frequency-regulation plant, which planned for Hazle Township, Pa.

The company had secured more than half of the funding to build the $53 million project, including a $24 million smart grid stimulus grant from the DOE and a $5 million grant from the commonwealth of Pennsylvania.



Trachte Inc._id1770
Latest Top Stories

The Song Remains The Same: Ontario Seeks More Science Before Lifting Offshore Ban

The Ontario government says the nearly four-year-old offshore wind moratorium will remain in place until the province fully understands the technology’s impact on the environment.


Why States Should Adopt A Renewable Portfolio Standard

A new study analyzes the potential benefits of state renewable energy mandates, as well as recommends what such policies should include.


Sen. Reid Vows To Bring Wind PTC To A Vote By Year's End

Nevada's senior senator provides some encouragement to wind industry advocates during his annual Clean Energy Summit.


Steadily, Wind Turbine OEMs Resume R&D Investment

An increased commitment to research and development will likely lead to wind energy innovation - not to mention a likely increase in patent-protected technology.


Quebec Government Postpones Wind Power RFP; No New Date Scheduled

The request for proposals (RFP) is part of an overall 800 MW wind power tranche that will serve as a bridge to the next phase in the province's energy future.

Renewable NRG_id1934
Canwea_id1984
UnitedEquip_id1995
Future Energy_id2008