Recently, Spanish “green” energy giant Abengoa went bankrupt. For Abengoa’s stockholders, that’s unfortunate.
It’s also unfortunate for US taxpayers.
Why, you ask? After all, isn’t Abengoa a foreign corporation?
Well, yes it is. But it also seems that Abengoa was a major recipient of the current US Administration’s “green energy” irresponsible and wasteful giveaways financial incentives. Since 2010, they received approximately $2.7 billion in US subsidies – in the form of DoE loan guarantees.
In fact, Abengoa is presently the single largest creditor of the Treasury Department’s Federal Financing Bank (FFB). They currently owe the FFB $2.34 billion. No word on who loaned them the other $360 million.
That’s not all. Abengoa also appears to have received an additional $605 million in tax credits and “green energy” grants – over and above their loan guarantees.
Abengoa took the money, all right – while running up a total corporate debt of around $17 billion. But their production – financial or actual – doesn’t seem to have exactly been stellar. One of their star projects was a massive biofuel plant in the US that has yet to announce production levels or sell any products. In fairness, Abengoa did indeed pay off the loan associated with that project – a loan that had been guaranteed by the US government. But they elected to do so “from other revenues”, not from the proceeds of biofuel sales. In fact, they paid of the loan before ever selling a drop of biofuel produced by the facility. Any biofuels produced at that facility are apparently still all stored at the facility – or were at the time the loan was repaid.
But hey – what’s $3.305 billion between friends, eh? It’s all “for the cause”. Its “saving the planet”!
Yeah, right. “Scam designed to enrich a select few” sounds far more like what’s going on here.
Don’t get me wrong; I’m in favor of basic research on how to make energy production cleaner and more efficient. “Cleaner” is definitely good; add “more efficient” and eventually that translates into “economically viable clean energy sources”. Mankind does have the responsibility to be a good caretaker for planet Earth – if for no other reason than self-preservation.
But regarding economically-viable “green” energy: in general we’re simply not there today. I do have a problem with a group of conceited fools in DC thinking that they can order the laws of physics, engineering, and economics to change overnight simply because they say so. And I have a huge problem with those same arrogant fools p!ssing away literally billions of the US taxpayer’s money in a Quixotic effort to do just that.
Oh, and it turns out that Abengoa might not be the only “hit” the taxpayer takes on the “green energy company goes belly-up” ledger this year.
Another huge player in the current Administration’s “green energy subsidy giveaway scams games” may well declare bankruptcy soon. That would be SunEdison – which has received nearly $650 million in Federal “green energy” subsidies and tax credits. They’re the 13th most heavily subsidized corporation in the US. And they are facing a serious liquidity crisis that many experts expect will force them to declare bankruptcy.
Hmm. First Solyndra. Then Abound Solar. Then Abengoa. Now, possibly, SunEdison.
I’m seeing a couple of trends here. The first trend isn’t any indication that economically viable green energy is “just around the corner”. And the second indication isn’t that the Administration’s officials managing the Administration’s solar giveaway sweepstakes seem to know their butts from a hole in the ground.