Atwood Oceanics, an international offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells, has been awarded a drilling services contract by Shemen Oil and Gas Resources Ltd., an Israel-based oil and gas company, for the Atwood Beacon independent leg cantilever Jack up rig.
The day rate for work offshore Israel will be $151,000, with contract commencement expected in September 2012 in direct continuation of the current contract. The costs for the mobilization will be covered by provisions in the current rig sharing group contract. The award has a firm duration of 180 days.
With the award of this contract, the firm contractual commitments for the Atwood Beacon are expected to extend through February 2013.
- Atwood Oceanics Bags Drilling Services Contract Offshore Cameroon
- USA: Atwood Oceanics Secures Contract for Atwood Aurora Rig
- Atwood Beacon Rig Awarded Contract for Work Offshore Suriname and Guyana
- Atwood Oceanic Clinches Contract to Drill Offshore Ivory Coast
- USA: Atwood Oceanics Secures Contract for its Atwood Eagle Rig
Flywheel maker Beacon Power declared bankruptcy on Sunday, first reported by Reuters, after winning a $43 million loan guarantee from the Department of Energy in the Summer of 2009. This is the second company to declare bankruptcy that had a loan guarantee from the DOE program, following solar maker Solyndra’s bankruptcy about two months ago.
Beacon Power makes flywheels, which are energy storage devices in the form of large spinning discs contained in a vacuum that keep electricity flowing over the power grid at a steady frequency. The technology has struggled to reach a mainstream market, but the idea is that flywheels can help stabilize the grid, allow it to run more efficiently, need little maintenance over their 20-year-plus life span, and don’t have some of the toxic chemicals found in many batteries. Flywheels are most commonly used as backup power for emergency power systems — what’s called uninterrupted power supply, or UPS — and facilities like data centers sometimes use them for when grid power is halted.
Beacon Power received the $43 million loan guarantee to help build a 20 MW flywheel energy storage plant in Stephentown, NY — the first full-scale commercial deployment of the company’s technology. The Stephentown energy storage plant was built to absorb and discharge energy to the electric grid, making it possible to use more variable renewable energy sources like solar and wind.
Reuters reports that Beacon drew down on $39 million of the loan for the Stephentown plant, and reports that the plant is still operating. And unlike in the case of Solyndra, where private investors are set to get paid back a portion of the funds first (before the government), Beacon Power will be paying back the government first, says Reuters.
Flywheel technology has struggled for years, and Beacon, in particular has continued to face problems. In late 2008, Beacon said it was delaying expansion of its commercial project, and back in 2006 the company faced technology malfunctions. Flywheels have had difficulty finding the right market and have faced competition from batteries, which have received a good amount of funding and support.
Earlier this month Beacon Power received a notice for potential delisting from the Nasdaq for trading under $1. Reuters reports that Beacon has $72 million in assets and $47 million in debt, and that Beacon blamed its bankruptcy partly “on its inability to secure additional investments due to the financing terms mandated by the Department of Energy.”
No doubt, House Energy Commerce Committee Republicans, and right-leaning media will have a field day with the bankruptcy of Beacon Power. Already, electric car maker Fisker has been deemed the next Solyndra. But turns out Beacon Power is actually the next Solyndra.
- Bust: Another Obama-backed green business goes bankrupt (junkscience.com)
- Pseudo-Solyndra – Another Energy-backed firm folds (politico.com)
- Flywheel storage maker Beacon Power declares bankruptcy – CNET (news.google.com)
- SOLARGATE UPDATE: Beacon Power bankrupt; had U.S. backing like Solyndra. “Beacon Power Corp filed … (pjmedia.com)