Obama’s administration is still picking winners. They are pouring our tax money into businesses, mostly alternative energy, which they believe are worthy to succeed.
One of those businesses, Solar Trust of America, owners of the development rights for the world’s largest solar power project filed bankruptcy in Germany yesterday. They couldn’t meet a deadline for a federal loan guarantee last year and weren’t eligible for another loan.
Solar Trust of America’s Chapter 11 filing on Monday listed assets between $1 million and $10 million, and liabilities between $50 million and $100 million according to the Washington Post.
[Now there's somebody I want to do business with - how could you lose? I'm not even in economics and have trouble with their math.]
The Oakland-based company has held rights for the 1,000-megawatt Blythe Solar Power Project in the Southern California desert, which last April won $2.1 billion of conditional loan guarantees from the U.S. Department of Energy. It is unclear how the bankruptcy will affect that project…Read more here: Reuters
This project was turned down by President Bush. Obama doesn’t like any fossil fuel but is doubling down on a technology, such as solar, that has been around since the 1880′s and has yet to come out of the basement because they are losers.
I took the following comments off the White House Blog – they didn’t take it off yet but should. Secretary of Energy, Chu, the A rated Secretary, couldn’t be more excited about Solar Trust. In April of last year, he was happy to share the good news with you about the 2.1 billion dollar loan we were giving Solar Trust with our tax dollars.
We’re in the Global Clean Energy Race to Win: Federal Investment in California Solar Energy Plant
April 18, 2011
03:57 PM EDT
I have good news. Today, the Department of Energy offered a $2.1 billion conditional commitment loan guarantee to support a concentrating solar thermal power plant near Blythe, California. This is the largest amount ever offered to a solar project through our the Department’s Loan Programs Office.
The loan will support two units of the Blythe Solar Power Project that will have a combined 484 megawatt generating capacity. These units are part of a larger project, sponsored by Solar Trust of America, that when completed will generate 1,000 megawatts of solar power, enough to power 95,000 homes a year.
The project is expected to create more than 1,000 jobs and is estimated to avoid more than 710,000 tons of carbon dioxide emissions annually, which is equivalent to the annual greenhouse gas emissions from more than 123,000 vehicles.
The Department’s loan guarantees play a critical role in facilitating the large-scale deployment of innovative clean energy technologies. Including loans for advanced vehicle technologies, the Department has committed financing to support 27 clean energy projects that will create or save more than 60,000 jobs across the U.S.
Today, we are in a global race to develop and deploy clean energy technologies. We can either sit on the sidelines and watch the competition pass us by or we can get in the race and play to win.
When we rev up the great American innovation machine, we can out-compete any other nation.
To spur innovation and grow the domestic clean energy market, President Obama has proposed doubling the amount of electricity we generate from clean energy sources by 2035. Investments in projects like the Blythe Solar Power Project will help meet this goal while creating jobs and positioning the U.S. to lead in the solar industry.
Steven Chu is the United States Secretary of Energy.
The following is also from the White House Blog and it shows Ken Salazar shared in the excitement. It’s historic he said, I guess because it is a monumental failure -
Investing in America’s New Energy Frontier
03:51 PM EDT
With the desert sun warming our backs and our shovels in the ground, California Governor Jerry Brown, BLM Director Bob Abbey and I participated in a groundbreaking ceremony this morning for the Blythe Solar Power Project, the world’s largest solar energy project to be built on public lands.
Located eight miles west of Blythe, California, members of the small community, local officials, and representatives from Solar Trust of America braved the 100 degree heat to witness a historic moment in America’s new energy frontier. In the near future, the ground where we stood today will hold a solar power plant that will generate up to 1000 megawatts of power—enough energy to power more than 300,000 homes.
Today’s ceremony not only launched the beginning of construction, but it also marked another important step in making America’s clean energy future a reality. This project shows in a real way how harnessing our own renewable resources can create good jobs here at home and contribute to our nation’s energy security.
Just the first phase of this project will put about a thousand people to work out here in Blythe during construction and will create more than 200 permanent jobs. The second phase is expected to do the same. These are big numbers for the Blythe community.
Amidst today’s excitement, the unprecedented federal and state coordination and strong support from the local community must not go unrecognized. Together, we have demonstrated how separate government processes can be coordinated without cutting corners or skipping any environmental checks and balances in the process. Along with the other five approved solar projects on public lands in California, the Blythe project was part of an extraordinary cooperative effort between Interior and the State of California—who also licensed the project—to ensure these projects received appropriate and rigorous environmental review in a timely manner.
And we aren’t stopping here. Interior is moving forward to evaluate 19 additional priority renewable energy projects that have been identified on public lands that, if approved, will join Blythe Solar Project as an important part of our nation’s comprehensive energy portfolio.
We’re investing in algae in lala land -
Obama – oil is bad, double down on promising clean energy -