Another one bites the dust... - PeachParts Mercedes-Benz Forum

jplinville · #1 04-03-2012, 11:44 AM

This time the loss is greater than Solyndra's...

Solar company bankrupt despite 'win-win' DOE loan | Campaign 2012 | Washington Examiner

Quote:

In keeping with the recent trend of so-called green companies going into the red, another solar energy company supported by President Obama's top administration officials declared bankruptcy today.
Solar Trust for America received $2.1 billion in conditional loan guarantees from the Department of Energy -- "the largest amount ever offered to a solar project," according to Energy Secretary Steven Chu -- for a project near Blythe, Calif., but declared bankruptcy within a year. It is unclear how much of the guarantee, if any, was actually awarded.
Senior officials in Obama's administration had very high hopes for the Blythe project. Interior Secretary Ken Salazar attended the groundbreaking ceremony, which he described as "a historic moment in America’s new energy frontier" and "another important step in making America’s clean energy future a reality." Chu trumpeted at the time that Solar Trust would prove that "when we rev up the great American innovation machine, we can out-compete any other nation."
The embarrassment should be bipartisan. "This is a huge milestone for our community," Rep. Mary Bono Mack, R-Calif., said when the company received its loan guarantee. "I look forward to continuing my work supporting projects . . . that will harness our local energy resources and help reduce our nation’s dangerous dependence on unstable foreign oil.”
Uwe Schmidt, chairman and CEO of the company, also argued that Solar Trust was good for the nation. He wrote last year that "the DOE loan guarantee is a 'win-win' for government and the companies involved and will not only advance the cause of energy independence but will create hundreds of thousands of jobs across the country."
The bankruptcy makes Schmidt's attempt to rebuke DOE critics in the wake of the Solyndra bankruptcy particuarly ironic.
"Despite the posturing and finger pointing, the American solar energy industry is alive and well," Schmidt wrote in an op-ed for the Huffington Post, before discussing his company's business plans. Referring to Solyndra, he lamented that "one company's bankruptcy has cast doubt on the credibility of a government program that is otherwise being administered with incredible efficiency."
The list of bankrupt solar companies has grown since Schmidt scolded Solyndra investigators. How many more might go bankrupt? Secretary Chu won't say.

Honus · #2 04-03-2012, 11:47 AM

Quote:

Originally Posted by jplinville

This time the loss is greater than Solyndra's...

From the article:

Quote:

...It is unclear how much of the guarantee, if any, was actually awarded...

mgburg · #3 04-03-2012, 11:56 AM

What WOULD be interesting is following the CAMPAIGN DONATIONS to each and everyone political in this deal (and their associates, whether they be consultants, advisors, prime-lenders, etc...).

Then we'll see how far the real stench has permeated the fabric of plausible deniability...

spdrun · #4 04-03-2012, 11:59 AM

Meh, some of the stronger technology based solar companies will survive and thrive in the future. 1kw per square meter of basically free energy is G-d's gift to this planet and nothing to sneer at. The oil-addicted retards will eventually fall by the wayside or just cack it from old age. Same as the idiots who yelled at drivers to "GET A HORSE" 110 years ago!!

I'd much rather my tax dollars be invested in solar power, even if some of those investments don't pan out. Better than spending the money fighting savages in the Middle East or subsidizing companies that dump oil into the Gulf

Hydrogen and electricity made using nuclear and renewable energy will almost certainly be the future. Why not help this country get on the path to that future instead of sticking with 20th century technologies?

aklim · #5 04-03-2012, 12:15 PM

I think the more relevant question is this. Besides going bankrupt were there any signs of problems like with Solyndra? If so, somebody/somebodys' scalp should be hanging out on the wall. If not, perhaps it should be another reminder of why govt should NOT be trying to make winners and losers when they cannot even do their own jobs.

jplinville · #6 04-03-2012, 12:39 PM

Quote:

Originally Posted by Honus

From the article:

Electric Utility Week: "Solar Trust Changes Technology For California Project, Walks Away From $2.1B Loan Guarantee." From an August 29, 2011, article in Electric Utility Week:

Quote:

A California developer has significantly altered the technology it will use to build a massive solar power plant in the Sonoran Desert, a move that makes it ineligible for a $2.1 billion loan guarantee that the Energy Department offered the company just a few months ago.
Solar Trust of America, based in Oakland, initially planned to use concentrating solar technology for the first 500-MW phase of the 9-square-mile power plant it intends to build near Blythe, about 200 miles west of Los Angeles. But Solar Trust announced last week that it will now use photovoltaic panels for at least the first phase of the project, which the company said are less expensive.
That decision allows Solar Trust to finance the project in the commercial banking market. But it also means that Solar Trust will walk away from the $2.1 billion loan guarantee that DOE conditionally awarded it in April -- the largest non-nuclear loan guarantee that the department has awarded to date.
"Improved conditions for solar PV projects in the commercial bank market made pursuing commercial financing a more attractive strategy at this time," Edward Sullivan, Solar Trust's vice president of communications and external affairs, said in an email.
Solar Trust's move makes it at least the third company to spurn a proffered DOE loan guarantee.

My question...if the above is accurate, does it really do anything to help anyone in DC on a political level? NO.

My point...No matter the outcome, if a company fails after the current administration touches it or uses it for political power and play, then falters after merely being offered a loan from the government, it's still a stain on the administration.

MTI · #7 04-03-2012, 12:44 PM

What's unclear from the "story" is whether any of the DOE loan guarantees were in play and if the US taxpayers are out any dough. Apparently the loan guarantees were lost when the project switched from thermal to PV. Should keep an eye on this story.

aklim · #8 04-03-2012, 12:48 PM

Quote:

Originally Posted by jplinville

My point...No matter the outcome, if a company fails after the current administration touches it or uses it for political power and play, then falters after merely being offered a loan from the government, it's still a stain on the administration.

I'd say it is a stain on the idea that govt needs to step in and do this or that. Do your own work first before you start trying to get cute and pick winners and losers. You can't even handle your own job. In short, MYOB.

tbomachines · #9 04-03-2012, 12:53 PM

Quote:

Originally Posted by MTI

What's unclear from the "story" is whether any of the DOE loan guarantees were in play and if the US taxpayers are out any dough. Apparently the loan guarantees were lost when the project switched from thermal to PV. Should keep an eye on this story.

I was thinking this too - I guess we'll have to stay tuned for more details...

Mostly I agree with Aklim's comment above. Did anyone see this coming, to what degree, and whose oversight was it? And of course, are the taxpayers out any money...

spdrun · #10 04-03-2012, 01:04 PM

Quote:

Originally Posted by aklim

I'd say it is a stain on the idea that govt needs to step in and do this or that. Do your own work first before you start trying to get cute and pick winners and losers. You can't even handle your own job. In short, MYOB.

Fine, then let's pull out of the Middle East tomorrow and throw Saudi and Israel under a big 'ol Persian freight train. I'd consider subsidizing solar to fall under the general welfare clause of the Constitution. Far better than death abroad and/or vomiting CO2 into the atmosphere.

Dee8go · #11 04-03-2012, 01:06 PM

Our federal government is not even capable of running itself efficiently, why would they think they might be successful in the role of venture capitalists?

aklim · #12 04-03-2012, 01:18 PM

Quote:

Originally Posted by spdrun

Fine, then let's pull out of the Middle East tomorrow and throw Saudi and Israel under a big 'ol Persian freight train. I'd consider subsidizing solar to fall under the general welfare clause of the Constitution. Far better than death abroad and/or vomiting CO2 into the atmosphere.

So would everyone with their pet projects be it solar energy, healthcare, military base closing, dog catcher, etc, etc. What you have essentially said is "I'm willing to cut everything but my pet projects."

aklim · #13 04-03-2012, 01:19 PM

Quote:

Originally Posted by tbomachines

And of course, are the taxpayers out any money...

Does it matter? Even if you did dodge the bullet this time, will you be that lucky next time?

spdrun · #14 04-03-2012, 01:26 PM

Quote:

Originally Posted by aklim

So would everyone with their pet projects be it solar energy, healthcare, military base closing, dog catcher, etc, etc. What you have essentially said is "I'm willing to cut everything but my pet projects."

Nah, utilizing a source of essentially free energy is much better than raping the environment, or paying for energy in American and foreign blood. That's just good sense. Prices will come down as economies of scale develop. However, governemt nurturing may help these economies of scale develop faster!!

aklim · #15 04-03-2012, 01:30 PM

Quote:

Originally Posted by Dee8go

Our federal government is not even capable of running itself efficiently, why would they think they might be successful in the role of venture capitalists?

If they couldn't print any more money, so to speak, and there was "Debtor's Prison", they'd be in there. At the rate they go, the jailer wouldn't just throw away the key. They'd weld the door shut.