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Yet Another Energy Company with Taxpayer Loan Goes Bankrupt

12:02 PM, Oct 31, 2011 • By MARK HEMINGWAY
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Well, now we know the reason for the Friday night news dump. When the Obama administration finally announced that they would be launching an independent review of Department of Energy loan guarantees, they were likely trying to get out ahead of this:

Beacon Power Corp filed for bankruptcy on Sunday, just a year after the energy storage company received a $43 million loan guarantee from a controversial Department of Energy program.

The bankruptcy comes about two months after Solyndra -- a solar panel maker with a $535 million loan guarantee -- also filed for Chapter 11, creating a political embarrassment for the administration of President Barack Obama, which has championed the loans as a way to create "green energy" jobs.

Beacon Power drew down $39 million of its government-guaranteed loan to fund a portion of a $69 million, 20-megawatt flywheel energy storage plant in Stephentown, New York.

It's been a mere four days since a company with a sizable federal loan guarantee went bankrupt. So Solyndra, Light Squared, Fisker, Open Range, and now Beacon—again, how many more of these risky taxpayer-backed loans are out there?

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