Beacon Power, an energy storage company, announced last week that it secured a $43 million loan guarantee from the Department of Energy.
To get that loan guarantee, Beacon went through a tough process. Bloomberg reports that Beacon spent $1 million over 3 years filling out 96 forms that occupied seven binders before receiving approval from the DOE. Considering the company only earns $68,000 in revenue, it’s a miracle Beacon was able to handle the big costs.
This fits with what we heard earlier this year about solar startup Solyndra. Solyndra, who received a $535 million loan guarantee, spent $10 million over three years dealing with the DOE, according to one of its venture backers.
The DOE is said to be radically different under Secretary of Energy, Steven Chu and Matthew Rogers, a senior advisor to the DOE, who comes from McKinsey. Good thing since the DOE has almost $200 billion in funds to dispense.
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