Beacon Power: Another energy loan gone bad

Background: Beacon Power is a global leader in the development and commercialization of flywheel-based energy storage solutions for grid-scale frequency regulation services and other utility-scale and unitary energy storage applications. Their goal is to use environmentally sound flywheel technology to deliver superior performance at lower cost, and generate long-term value for their Company, their stakeholders, and society. With today's urgent need for clean energy solutions that do not burn fossil fuel, Beacon Power is well positioned to provide sustainable solutions for a broad range of energy-balancing applications in multiple global markets.


Article: Beacon Power: Another energy loan gone bad


Analysis:
While the author went straight to the point and left out most of the description about the company, the messages was written clearly for readers to come across the main point:

"Beacon Power, which makes energy storage devices used to help the power grid become more efficient, filed for bankruptcy protection Sunday, according to a filing with the Securities and Exchange Commission. The company received a $43 million loan guarantee from the Department of Energy last August."

Later in the article, the author looks at how the company uses different methods to keep the company from going down hill:

"Stearns is leading an investigation into the bankruptcy of Solyndra, a solar panel maker that received a $535 million government loan guarantee last year. The Beacon bankruptcy will likely only make that investigation more urgent."

"As a regulated industry, utilities were only allowed to pay a fixed rate set by government regulators for Beacon's services, the DOE said. The rate was not high enough for the company to survive."

In summary, the writer of this editorial is making the claim that the company tries many methods to keep the company far away from bankruptcy, but at the end they could not keep it from going down.

Lets formalize the argument:
Premises (1) - Beacon Power, which makes energy storage devices used to help the power grid become more efficient, filed for bankruptcy protection Sunday, according to a filing with the Securities and Exchange Commission.

Premises (2) - DOE spokesman Damien LaVere noted that, unlike Solyndra, which closed up shop on the day they declared bankruptcy, Beacon has an operational facility in Stephentown, New York that has long term contracts which it can use to generate money.

Premises (3) - But Beacon's finances came under pressure thanks to low rates government regulators forced it to charge utilities.

Premises (4) - As a regulated industry, utilities were only allowed to pay a fixed rate set by government regulators for Beacon's services, the DOE said. The rate was not high enough for the company to survive.

Conclusion - Another alternative energy company that received a loan guarantee from the U.S. government has filed for bankruptcy.


The fallacy were difficult to explain as it is not stated clearly in the article. The writer writes mostly about how the company makes energy storage devices used to help the power grid to become more efficient, which I believe is a brilliant idea. It also was described how the company was approved for a federal loan from the U.S. government but was not able to succeed. Eventually, they were forced to file bankruptcy.

This is a case of an argument from ignorance fallacy. The fallacy were not stated in the article, making it obvious that there were none. However, the article briefly explains well how the company went through major steps in trying to succeed, but sadly it still came to an end to the company. This article could not be describe as any another besides a summary of the how the company filed bankruptcy.