More taxpayer money flushed down the toilet
(USA Today) Two taxpayer-backed clean energy companies that specialize in capturing heat from the earth and turning it into electricity are facing deep financial difficulties, according to an analysis of financial records.
The companies, based in the West, have received $195 million in partial federal loan guarantees and grants aimed at promoting clean energy. Although the companies have agreements with utilities to buy their energy, they have not operated at a profit. They face questions similar to those of Solyndra, the now-bankrupt solar manufacturer that received a $535million federal loan in 2009.
Raser Technologies, a Utah company, filed for Chapter 11 bankruptcy protection this year after burning through hundreds of millions of investor financing and a $33 million Treasury Department grant that was awarded to the company in 2010. Nevada Geothermal Power (NGP) said in its financial filings that it has never operated profitably and that the company is at risk of failing as a going concern.
A third company, U.S. Geothermal, received a $97 million Energy Department loan in February. Its filings with the federal Securities and Exchange Commission show that it has not made a profit in the past four years.
Obama himself pushed for loans for these companies, and it was part of his Stimulus plan. Yet, none of these companies showed a profit, and don’t show any measures that show that US Geothermal and Nevada Geothermal Power will ever show a profit.
Raser has apparently renamed itself Cryq Energy.
