Beacon Power filed for Chapter 11 bankruptcy in Boston on October 31, joining Solyndra and Evergreen Solar on the list of Department of Energy-backed clean tech entities that have sought bankruptcy protection.
Beacon Power’s flywheel energy storage technology holds promise as a means of stabilizing the electrical grid by “recycling” energy from the grid. The technology would pull energy from the grid during off-peak times when there is more energy supply than demand, then store the energy so that it is available to feed back into the grid during on-peak times.
Department of Energy spokesman Dan Leistikow was quick to point out that the DOE’s $43 million loan to Beacon Power is secured by its Stephentown, NY, facility, which has just begun commercial operations. It is likely that the company will utilize Chapter 11 to reorganize and continue operations while working out a payment plan with creditors.
This post on Clean Tech was authored by Caitlin Vaughn.