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.


IowaDeptEconDevel_id1863

Helukabel_id1908
Latest Top Stories

Smart Community Engagement: Twelve Tips Every Wind Developer Should Know

Community engagement helps ensure a project runs smoothly, but it can also save developers money and even lead to a more successful wind industry overall.


Bird Groups Target LEEDCo's Icebreaker Offshore Wind Pilot

Two bird conservation groups that helped halt a wind project earlier this year argue that Lake Erie Energy Development Corp.'s (LEEDCo) 18 MW offshore demo poses a major risk to regional wildlife.


Report Disputes U.S. Agency's Renewable Energy Projections

A new analysis from the Sun Day Campaign says renewables are slated to provide 16% of U.S. generating capacity by 2018 - over 20 years earlier than forecast by the Energy Information Administration.


Kansas Renewables Mandate Survives Yet Another Attack, But Is It Too Early To Celebrate?

Over the past three years, some legislators have tried to either weaken or repeal the state's renewable portfolio standard, which requires Kansas utilities to reach 20% renewables by 2020.


AWEA Highlights U.S. Wind Success Stories Of 2013

Despite a 92% drop in new capacity last year, the sector still has myriad reasons to celebrate, according to a new report from the American Wind Energy Association.

Acciona_id1907
JLG_id1900
UEA_id1896
WomenofWind_id
bonfiglioli_id1913
AWEA_id1886