Yes, the Obama administration has the equivalent of a gardener having a brown thumb. It seems no matter what it touches, it withers and dies. This time it’s $39 million tax dollars out the window.
An energy company that received a $43 million loan guarantee through the same federal program that backed Solyndra has followed the path of the failed solar firm and filed for bankruptcy.
Beacon Power Corporation filed for Chapter 11 bankruptcy on Sunday in U.S. Bankruptcy Court in Delaware. The company, which develops energy storage systems based on what are known as “flywheels,” had received the federal guarantee for a 20-megawatt energy storage plant in Stephentown, N.Y., back in August 2010.
Add this one to the list consisting of Solyndra, Spectra Watt and Evergreen Solar who have also received hundreds of millions of tax payer dollars and have filed for bankruptcy. They screwed the taxpayers, too.
The Massachusetts-based company also received $29 million in grants from the Energy Department and the state of Pennsylvania through separate programs for a plant in Hazle Township, Pa.
So, what kind of green jobs did this create (or rather was supposed to create) and at what cost? Let’s do some simple mathematics. Take the above $43 million + the above $29 million and you get a total of $72 million dollars. So how many employees?
When the project was approved, the Energy Department reported that the loan guarantee would help save or create 14 permanent jobs and 20 construction jobs.
If you take the total of permanent and temporary jobs that is a total of 34 employees. Divide $72 million by 34 and that is an astronomical $2.11 million per job. Divide the $72 million by the 14 permanent jobs and that’s an even more astronomical $5.14 million per job.
This is why the government should keep their nose out of it. If solar and wind power are such a hot commodity, then venture capitalists would be so eager to pump money into them that government subsidies would not be required. It would be their decision, their money and their risk.
Federal and state governments really have no business making extravagant loans to companies with unproven technology or a manufacturing process that cost so much the Chinese can easily undercut the price. Politics mixing with private industry is a recipe for disaster as proven by these failures.
Warmers, please don’t mention oil and gas subsidies. Those are proven technologies that actually produce something usable by taxpayers and as such, we don’t have a problem with them.
Source: Fox News