Over the last few years there's been a push to convert from coal burning and petroleum-based energy and go green. When Obama became president he pushed for massive financial support for this so-called Green industry. Shortly after getting into office the wheels started falling off of the program as Solyndra announced it was filing bankruptcy. It appeared that the company was struggling to compete in the solar panel market against highly competitive Chinese companies. Also with the downturn in the economy, sales dropped drastically in the entire industry. The highly publicized bankruptcy filing was watched closely due to a $535 million loan guarantee from the federal government.
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It didn't stop there, in July 2012, Abound Solar announced it was filing for bankruptcy leaving the taxpayers on the hook for $70 million in loans. This solar company estimated having liabilities of between $100 million and $500 million. This in fact became one of the largest corporate bankruptcy filings in Colorado history. Initially the company said it would reorganize under Chapter 11 bankruptcy but has flip-flopped back and forth with filing Chapter 7 bankruptcy. Recently it was announced that Abound Solar would be filing Chapter 7 bankruptcy, halting its operation and dissolving.
Not only are these federally backed loans going out to solar companies but also to green power companies like Nevada Geothermal Power. Nevada Geothermal Power received a $98.5 million federal loan guarantee and company was struggling and not financially solvent. It appears this loan served as more of a bail out than an investment. Congressman Jim Jordan, a Republican from Ohio, said that Nevada geothermal was already in deep financial difficulty before the federal loan guarantee.
In a report dated March 31, 2012, the firm's auditor stated:
The company's ability to continue as a going concern is dependent on its available cash in its ability to continue to raise funds to support corporate operations and the development of other properties, consequently, material and certainties exist which cast significant doubt upon the company's ability to continue as a going concern.
It appears was being used to prop up an already faltering company. The loan that was given to Nevada Geothermal was strongly supported by the Nevada Democrat Sen. Harry Reid. The senator was instrumental in including the loan in the $814 billion stimulus bill in 2010.
Another company that left the taxpayer on the hook for $249.1 million was A123 Systems. The electric car battery manufacturer announced they were filing Chapter 7 bankruptcy because of lack of sales in the electric car industry. There is no real surprise there after seeing the failure of the Chevy Volt.
Over the last 10 years there has been a move in the federal government to subsidize and mandate clean energy on a massive scale. The only problem is it is not an economical solution and is having unintended consequences. To look for an example of a failed green economy all we have to do is take a look at Spain that has unemployment upwards of 20%. The green movement is supposed to protect the environment, but ecologists have been reporting that birds are being killed at the giant wind farms and getting chopped up. In New England, towns are complaining of the constant loud noise of the wind power they are using.
Many energy analysts point out that there are reasonable solutions to our energy problems. The coal industry using technology has been able to be a clean burning source of power and be able to use the vast reserves of coal that are now being sold overseas. The United States has large reserves of Oil and natural gas that can be used with little or no environmental risk while not using a penny of tax dollars. As the list continues to grow on federally funded green companies that are filing bankruptcy, the taxpayer is getting tired of footing the bill. The only ones benefiting from these investments are the CEOs of the Green companies and the bankruptcy attorney that represents them.
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