Danielle Changala

November 4, 2011

Beacon Power Corp., a developer of energy storage and frequency regulation services, filed for bankruptcy protection in the U.S. Bankruptcy Court in Delaware last Sunday, October 30th. The Massachusetts-based company received a $43 million loan guarantee from the Department of Energy (DOE) last year to help build its 20-megawatt flywheel storage facility in Stephentown, New York.

Beacon developed an innovative flywheel storage technology which uses 2,500-pound carbon fiber cylinders, rotating as much as 16,000 times per minute, to store kinetic energy. The kinetic energy "stored" in the flywheel can be converted into electricity and sent onto the electricity grid when additional electricity is needed to balance the load or regulate frequency. The flywheel can absorb excess electricity on the grid as needed as well.

Beacon's bankruptcy comes in the wake of the bankruptcy filed by the California solar panel manufacturer, Solyndra. Solyndra received a $535 million loan guarantee from the DOE in 2009.

The DOE has been quick to contrast the economic collapse of Solyndra and Beacon's bankruptcy. As the DOE indicates, Solyndra completely ceased production as the company went under, whereas Beacon has continued to operated its energy storage plant. Furthermore, Beacon's New York plant continues to be a valuable collateral asset.

Despite the upset of two innovative clean technology companies in recent months, the DOE remains committed to supporting the development and deployment of innovative energy systems. The Department recognizes that investments in these technologies are necessary to integrate renewable energy and reduce greenhouse gas emissions.

Sources:

Another Solar Company Files Bankruptcy, http://www.energydigital.com/renewable_energy/another-solar-company-files-bankruptcy

Beacon's Flywheel Power Storage System May Avoid Solyndra's Fate, http://www.bloomberg.com/news/2011-10-21/beacon-s-flywheel-power-storage-system-may-avoid-solyndra-s-fate.html

On Our Radar: Another Energy Bankruptcy, http://green.blogs.nytimes.com/2011/10/31/on-our-radar-another-energy-bankuptcy/?scp=2&sq=Beacon%20Power&st=cse

Second Energy Department-backed company goes bankrupt, http://thehill.com/blogs/e2-wire/e2-wire/190641-second-energy-dept-backed-company-goes-bankrupt

Beacon Power: Overview, http://BEACONPOWER.COM/company/index.asp