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Another Green Failure

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1Another Green Failure Empty Another Green Failure 10/26/2012, 3:25 pm

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Guest

Throwing more money away

"President Obama’s green jobs training program, which was part of his stimulus, has failed on most key jobs measures, according to a new internal audit that found it was training workers who already had jobs that didn’t need green energy skills, and was failing to place new enrollees in jobs once they finished the training.
The Energy Department’s inspector general also said grantees who received the green jobs-training money did a poor job of reporting their results.
Only 38 percent of those who have completed training got jobs based on it, and only 16 percent kept jobs for at least six months — the key measure of success for the program.
“Outcomes for participants were far less than originally proposed,” the auditors said.
The government earmarked more than $400 million for green jobs training programs, and $328.5 million has been spent so far.
About half were already working in the energy sector and wanted retraining, and half were potential new energy workers.
Of those workers who already had energy-sector jobs, the auditors said they were retrained, even though they didn’t need it.
“We found no evidence that the incumbent workers in our sample required services or training to keep their job or obtain a new one,” the investigators said in their report.
The Energy Department challenged the findings, saying that auditors didn’t consider the full progress of those who got training. The department said some of those who got training found jobs before their training was completed and said they should have been counted.
Jane Oates, assistant secretary for employment and training, also said as the rest of the training is completed, they expect the numbers to improve.
The audit was released by House oversight committee Chairman Darrell E. Issa, who requested the update.
Mr. Issa said in addition to poor performance records, the green jobs money “served as a slush fund” for the Obama administration to dole out payments to allies “like the National Council of La Raza, the Blue Green alliance and the U.S. Steelworkers Union.” (Wash Times)

2Another Green Failure Empty Re: Another Green Failure 10/26/2012, 4:27 pm

Guest


Guest

What a damned waste of our taxpayer dollars to train people who are already employed in the field in which they are already employed (didjya catch all of that?)!!

That's one of the most absurd things I've heard in... well, a couple of weeks anyway. LOL. Lots of absurdity in our bass-ackward government.

nochain, you might find the below article of interest. While my livelihood is dependent upon the success of wind and solar sectors and I worked in wind turbine manufacturing for just short of 12-years, I have only reluctantly supported the PTC because I don't believe in subsidies, tax credits, any of that malarkey, and until the subsidies &c for O&G, coal (...) go away, I will continue to very reluctantly support the PTC.

The article below addresses the most salient points in ALL energy subsidies today.

Mr. Romney, let’s be honest about subsidies to renewable energy


Wally Lafferty
August 19, 2012

A note to my readers:
I have received many responses to the letter below, and I wanted to take the opportunity to clarify and correct a couple of points. I appreciate the input from my readers and I believe this letter has been made stronger as a result of the input. Please link this letter to as many websites, Twitter and Facebook pages as you can as it is crucial to get the word out prior to the upcoming election. Feel free to use this information, but remember to credit the Environmental Law Institute as the original source for the data.

What follows is my open letter to Governor Mitt Romney’s campaign. I hope enough people link to it that the campaign and the news media will have to address it. Please get the word out as quickly as possible.
-Wally


Dear Mr. Romney,

A lot of attention was given to you by the media when you declared you would allow the Production Tax Credit for wind energy to expire at the end of the year. Your campaign went further to claim that you will “end the stimulus boondoggles, and create a level playing field on which all sources of energy can compete on their merits.”

If you truly wish to create a level playing field for all sources of energy, please tell us what you intend to do about tax credits — those that you call stimulus boondoggles — that currently exist for coal, oil and gas.
Many of these tax incentives have existed for decades while the fossil fuel-based industry continues to set new records for multi-billion dollar profitability year after year. What is your position on the fact that the vast majority of federal subsidies for fossil fuels and Ethanol were spent to support energy sources that emit high levels of greenhouse gases when used as fuel?

How will you reconcile the fact that the federal government has historically provided, and continues to provide, substantially larger subsidies to fossil fuels than to renewables while fossil fuels produce multi-billion dollar profits?
Fossil fuels are a mature, well-developed industry that has enjoyed government support since its inception over 100 years ago, totaling approximately $72 billion between 2002 and 2008. During the same period, renewable fuels, which are a relatively young and undeveloped industry, totaled merely $29 billion and 80% of that went to Ethanol subsidies.

How will you address the fact that the Production Tax Credit for wind energy repeatedly approaches expiration on a regular basis unless Congress and the President decide to extend it, throwing costly uncertainty into the renewable energy business model; while the largest subsidies to fossil fuels have been written into the U.S. Tax Code as permanent provisions? It appears that you like to criticize special tax credits for wind and solar and pretend that the tax incentives to fossil fuels don’t exist. Since powerful lobbyists for the fossil fuel industry have gotten their incentives permanently added to the tax code, you seem to believe that they aren’t tax incentives any longer but just ordinary adjustments to corporate balance sheets.

Since so many Americans are spending a lot of time discussing the upcoming expiration of the PTC, can you please address your plans for…

- the Credit for Production of Nonconventional Fuels - IRC Section 45K. This permanent tax provision provides a lower tax rate for companies who produce certain fossil fuels.

- the Oil and Gas Exploration & Development Expense – IRC Section 617. Also known as Intangible Drilling Costs (IDC). This tax provision allows fossil fuel companies to deduct the cost of wages, machinery, or unsalvageable materials. The term “unsalvageable materials” is left ambiguous so it can be applied to a broad range of intangible costs.

- the Oil and Gas Excess Percentage over Cost Depletion – IRC Section 613. This permanent provision in the tax code allows independent producers and royalty owners to deduct 15% of gross income earned from oil, gas and oil shale deposits. The nature of this tax incentive is nearly equivalent to the wind energy PTC, except that this one has been made a permanent provision in the tax code for fossil fuels.

- Coal Royalty Payments as Capital Gains – IRC Section 631(c). This permanent provision allows income from the sale of coal under royalty contract to be be treated as a capital gain rather than ordinary taxable income, thereby reducing the tax liability for qualifying individuals. Would you please explain who these qualifying individuals are, and why they deserve this special treatment when profits in this industry are so high?

- the Credit for Enhanced Oil Recovery Costs – IRC Section 43. This tax credit, also permanently written into the tax code, is available specifically for companies who use hydrocarbon-based tertiary injectant methods.

- the Exclusion of Alternative Fuels from the Fuel Excise Tax – IRC Section 6426(d). This section further reduces the tax liability specifically for liquified petroleum gas (LPG), P-series fuels, compressed natural gas (CNG), liquefied natural gas (LNG), liquefied hydrogen, liquid coal, and liquid hydrocarbon from biomass.

Those are just a small number of the many tax incentives given to fossil fuel companies that have been written into the tax code as permanent provisions. You have not addressed these in your campaign platform. Do you intend to remove these from the permanent tax code?

Let’s be honest.

I come with an idea. I propose that we extend the PTC long enough for the government to remove the special incentives for fossil fuels from the tax code, thereby leveling government support for all energy sources. Or, we can agree to extend the PTC until the wind and solar industries have managed to add equivalent tax incentives to the tax code that equally benefit them. You said you wanted to create a level playing field. I’m all for it. But allowing the PTC to expire on the basis of “leveling the field for all energy sources” while the fossil fuel industry continues to enjoy their special incentives is the height of government hypocricy.

Respectfully,

Wally Lafferty

A Sustainability Minute blogger

For more information on special tax incentives for all energy sources, see: Estimating U.S. Government Subsidies to Energy Sources: 2002-2008, by the Environmental Law Institute.

http://www.elistore.org/Data/products/d19_07.pdf

http://asustainabilityminute.com/2012/08/19/mr-romney-lets-be-honest-about-subsidies-to-renewable-energy/

3Another Green Failure Empty Re: Another Green Failure 10/26/2012, 4:33 pm

Guest


Guest

Another example of intent outweighing results... that must be the basis of the left.

4Another Green Failure Empty Re: Another Green Failure 10/26/2012, 4:37 pm

Guest


Guest

Rice - that was an interesting article and I agree subsidies for carbon based should be eliminated. I also believe ethanol is a needless drain on the country. I would prefer investment in more fuel efficient engines. Look how successful the private space "contest" went, for a mere $10M prize it brought out some significant advancements in space capabilities. Turn our young engineers loose on a super efficient auto engine and see what happens. I am sure petroleum companies are also sitting on purchased technology patents that increase fuel efficiency.

5Another Green Failure Empty Re: Another Green Failure 10/26/2012, 4:44 pm

Guest


Guest

nochain wrote:Rice - that was an interesting article and I agree subsidies for carbon based should be eliminated. I also believe ethanol is a needless drain on the country. I would prefer investment in more fuel efficient engines. Look how successful the private space "contest" went, for a mere $10M prize it brought out some significant advancements in space capabilities. Turn our young engineers loose on a super efficient auto engine and see what happens. I am sure petroleum companies are also sitting on purchased technology patents that increase fuel efficiency.

Glad you found the article to be of interest, nc.

I completely agree with you on all of your above points, and I particularly like the idea of the contest to design a super-efficient auto engine.

6Another Green Failure Empty Re: Another Green Failure 10/26/2012, 6:45 pm

Yella

Yella

nochain wrote:Throwing more money away

"President Obama’s green jobs training program, which was part of his stimulus, has failed on most key jobs measures, according to a new internal audit that found it was training workers who already had jobs that didn’t need green energy skills, and was failing to place new enrollees in jobs once they finished the training.
The Energy Department’s inspector general also said grantees who received the green jobs-training money did a poor job of reporting their results.
Only 38 percent of those who have completed training got jobs based on it, and only 16 percent kept jobs for at least six months — the key measure of success for the program.
“Outcomes for participants were far less than originally proposed,” the auditors said.
The government earmarked more than $400 million for green jobs training programs, and $328.5 million has been spent so far.
About half were already working in the energy sector and wanted retraining, and half were potential new energy workers.
Of those workers who already had energy-sector jobs, the auditors said they were retrained, even though they didn’t need it.
“We found no evidence that the incumbent workers in our sample required services or training to keep their job or obtain a new one,” the investigators said in their report.
The Energy Department challenged the findings, saying that auditors didn’t consider the full progress of those who got training. The department said some of those who got training found jobs before their training was completed and said they should have been counted.
Jane Oates, assistant secretary for employment and training, also said as the rest of the training is completed, they expect the numbers to improve.
The audit was released by House oversight committee Chairman Darrell E. Issa, who requested the update.
Mr. Issa said in addition to poor performance records, the green jobs money “served as a slush fund” for the Obama administration to dole out payments to allies “like the National Council of La Raza, the Blue Green alliance and the U.S. Steelworkers Union.” (Wash Times)

The organized Corporate Power can and will destroy anything that might affect their profits, Green energy is a no no for Corporate Coal and Oil.
400 million is a drop in the bucket for them.

http://warpedinblue,blogspot.com/

7Another Green Failure Empty Re: Another Green Failure 10/26/2012, 7:23 pm

ZVUGKTUBM

ZVUGKTUBM

The game-changer in renewables will be electricity from solar. Absolute Black solar technology is now here--99.7% efficiency, with just 0.3% reflectance of light back to the atmosphere. Here is an article about the technology:

http://www.natcoresolar.com/index.php?option=com_content&view=article&id=155&Itemid=75

How about spray-on solar that puts a thin film on any window in your home or building, turning the window into a solar panel? The technology is now here:

http://www.newenergytechnologiesinc.com/technology/solarwindow

Then there is the prospect of "Solar Crossover" by 2015 or 2016:

https://news.fidelity.com/news/news.jhtml?cat=Opinion&articleid=201206261305STREETCMREALTIME_11597613&IMG=N

Solar Crossover is when electricity from solar becomes cheaper than electricity from fossil fuels. Some say this could occur within 2-3 years. That will be an earth-shaking event. I would not want to have a lot of Gulf Power stock in my portfolio when that happens.

The bottom line is that game-changing events are happening in the solar field. Solyndra was a red-herring. This stuff is real and it is coming at the right time. There are so many uses for petroleum and natural gas besides just burning them for fuel. This kind of technology could radically alter our future.

BTW, I am not knocking the wind industry at all, Rice. We need to develop and foster all of the viable renewable energy technologies. I do agree with nochain that ethanol will never deliver what its proponents say it will. It takes more energy to make ethanol than the energy ethanol can deliver, and we should not be using corn (an important human food) to make a fuel that is a lousy one, to say the least.

I will take all of the renewables we can get if it will one day keep crazies from thinking about invading Venezuela to "liberate" that country's oil reserves from Chavez.

http://www.best-electric-barbecue-grills.com

8Another Green Failure Empty Re: Another Green Failure 10/26/2012, 7:35 pm

Guest


Guest

Why would this agenda be advanced by the govt during an economic crisis?

9Another Green Failure Empty Re: Another Green Failure 10/26/2012, 7:39 pm

gulfbeachbandit

gulfbeachbandit

PkrBum wrote:Why would this agenda be advanced by the govt during an economic crisis?

Because all the failed green energy companies that received obama grants donated to his election and he owed them.

10Another Green Failure Empty Re: Another Green Failure 10/26/2012, 7:53 pm

Guest


Guest

ZVUGKTUBM wrote:The game-changer in renewables will be electricity from solar. Absolute Black solar technology is now here--99.7% efficiency, with just 0.3% reflectance of light back to the atmosphere. Here is an article about the technology:

/...snip snip snip.../

Solar Crossover is when electricity from solar becomes cheaper than electricity from fossil fuels. Some say this could occur within 2-3 years. That will be an earth-shaking event. I would not want to have a lot of Gulf Power stock in my portfolio when that happens.

The bottom line is that game-changing events are happening in the solar field. Solyndra was a red-herring. This stuff is real and it is coming at the right time. There are so many uses for petroleum and natural gas besides just burning them for fuel. This kind of technology could radically alter our future.

BTW, I am not knocking the wind industry at all, Rice. We need to develop and foster all of the viable renewable energy technologies. I do agree with nochain that ethanol will never deliver what its proponents say it will. It takes more energy to make ethanol than the energy ethanol can deliver, and we should not be using corn (an important human food) to make a fuel that is a lousy one, to say the least.

I will take all of the renewables we can get if it will one day keep crazies from thinking about invading Venezuela to "liberate" that country's oil reserves from Chavez.

Z, while I agree with you that solar is currently the future of renewables, I disagree that it will become affordable within the next 2 - 3 years. Materials and sourcing are just not anywhere near that close to becoming affordable yet. It took many years for wind materials and sourcing to get there, and we didn't have *near* the economic issues driven by material costs and there were no radical changes in technology (ref: PV to CSP) as in solar. That being said while Global Supply Chain Management is my area of expertise, I very well could be wrong, I truly hope that I am.

It was plain stupidity for Obama and his team to throw money at Solyndra and many of the other renewable businesses that they did without performing proper due diligence. In the real world (business), that would have never happened. Pissed me off at the time, and pisses me off even more now.

And for the record, I agree with you all regarding ethanol. It's a waste of energy, time, manpower and resources.

11Another Green Failure Empty Re: Another Green Failure 10/26/2012, 8:02 pm

Guest


Guest

It wasn't his money.

12Another Green Failure Empty Re: Another Green Failure 10/26/2012, 8:09 pm

gulfbeachbandit

gulfbeachbandit

PkrBum wrote:It wasn't his money.

It was our money. But he don't care. Free cell phones for all the obama voters and free grants for all the obama campaign contributers.

13Another Green Failure Empty Re: Another Green Failure 10/26/2012, 8:20 pm

Guest


Guest

A few years ago a doctor freind of mine fitted his house with solar. it cost him $10,000.

Then obama gave all this money to solar and did not pay any attention to the trading power of chinese solar and the chinese built solar cheaper, shipped it over here and boom. out of buss. out mega tax payer $$$

Why isnt the whitehouse run by solar power?

Is it because its so expensive?

carter put the first solar powered panals on the white house and obama took em off and didnt replace them. oh well

I think its great to look into other forms of energy. I really do. But we cant not give permits and continue to invest in our known forms of energy all because we wish some other form was available. This doesnt work and it just causes our bills to go higher during a time when we really dont need it.

and I am by far no tree huggin earthy greeny. But i am dead set against fracking, sorry Z. you know this and you can call me names, get in line.

fracking is fracking bad. How anyone in thier right mind can think that shoving chemicals into the crust of the earth to force up gas is good is beyond me. You can buy it or not, but thats why we are having earth quakes in weird places.

other than that, the contest are the best idea as metioned to get new ideas and cost efficient ways at these things.

but contest dont garner votes and special payoffs for politicians as metioned as well.

and please think about this. If you really want to have a bunch of pissed off middle eastern people, invent a car that doesnt run on gas so you dont need the sand peoples money maker product. They will starve and be even more angry than they are now.

What happened to this guy?

http://www.metacafe.com/watch/1355329/the_inventor_of_the_car_that_runs_on_water_has_been_killed/

14Another Green Failure Empty Re: Another Green Failure 10/26/2012, 8:25 pm

ZVUGKTUBM

ZVUGKTUBM

Rogue wrote:A few years ago a doctor freind of mine fitted his house with solar. it cost him $10,000.

Then obama gave all this money to solar and did not pay any attention to the trading power of chinese solar and the chinese built solar cheaper, shipped it over here and boom. out of buss. out mega tax payer $$$

Why isnt the whitehouse run by solar power?

Is it because its so expensive?

carter put the first solar powered panals on the white house and obama took em off and didnt replace them. oh well

I think its great to look into other forms of energy. I really do. But we cant not give permits and continue to invest in our known forms of energy all because we wish some other form was available. This doesnt work and it just causes our bills to go higher during a time when we really dont need it.

and I am by far no tree huggin earthy greeny. But i am dead set against fracking, sorry Z. you know this and you can call me names, get in line.

fracking is fracking bad. How anyone in thier right mind can think that shoving chemicals into the crust of the earth to force up gas is good is beyond me. You can buy it or not, but thats why we are having earth quakes in weird places.

other than that, the contest are the best idea as metioned to get new ideas and cost efficient ways at these things.

but contest dont garner votes and special payoffs for politicians as metioned as well.

and please think about this. If you really want to have a bunch of pissed off middle eastern people, invent a car that doesnt run on gas so you dont need the sand peoples money maker product. They will starve and be even more angry than they are now.

What happened to this guy?

http://www.metacafe.com/watch/1355329/the_inventor_of_the_car_that_runs_on_water_has_been_killed/

Why are you blaming Obama for something that Reagan did? Oh, never mind.....

http://www.best-electric-barbecue-grills.com

15Another Green Failure Empty Re: Another Green Failure 10/26/2012, 8:39 pm

Guest


Guest

ZVUGKTUBM wrote:
Rogue wrote:A few years ago a doctor freind of mine fitted his house with solar. it cost him $10,000.

Then obama gave all this money to solar and did not pay any attention to the trading power of chinese solar and the chinese built solar cheaper, shipped it over here and boom. out of buss. out mega tax payer $$$

Why isnt the whitehouse run by solar power?

Is it because its so expensive?

carter put the first solar powered panals on the white house and obama took em off and didnt replace them. oh well

I think its great to look into other forms of energy. I really do. But we cant not give permits and continue to invest in our known forms of energy all because we wish some other form was available. This doesnt work and it just causes our bills to go higher during a time when we really dont need it.

and I am by far no tree huggin earthy greeny. But i am dead set against fracking, sorry Z. you know this and you can call me names, get in line.

fracking is fracking bad. How anyone in thier right mind can think that shoving chemicals into the crust of the earth to force up gas is good is beyond me. You can buy it or not, but thats why we are having earth quakes in weird places.

other than that, the contest are the best idea as metioned to get new ideas and cost efficient ways at these things.

but contest dont garner votes and special payoffs for politicians as metioned as well.

and please think about this. If you really want to have a bunch of pissed off middle eastern people, invent a car that doesnt run on gas so you dont need the sand peoples money maker product. They will starve and be even more angry than they are now.

What happened to this guy?

http://www.metacafe.com/watch/1355329/the_inventor_of_the_car_that_runs_on_water_has_been_killed/

Why are you blaming Obama for something that Reagan did? Oh, never mind.....

obama was supposed to put solar on the white house. It was a promise of his. ( I stand corected on the taking off thing)

http://www.huffingtonpost.com/2011/06/21/solar-panels-white-house-roof_n_880940.html

I figured you go after me for hating fracking. This was a suprise.

16Another Green Failure Empty Re: Another Green Failure 10/27/2012, 1:25 am

Guest


Guest

Another Green Failure Is?Wy7-i8fiD6V_vrFDXzztliEPEm-mq0hRn5tGZfS8VSg

Investing all those subsidies and grants into fusion and anti-matter research in an attempt to find a cheap way of creating a high energy output power plant that runs on them would have been a better use of our tax dollars.

*****SMILE*****

https://www.youtube.com/watch?v=i0NcFU838GY

Smile

17Another Green Failure Empty Re: Another Green Failure 10/27/2012, 1:52 am

Guest


Guest

If obama really thght it was good idea right now... he would be "investing" his own money.

18Another Green Failure Empty Re: Another Green Failure 10/27/2012, 2:49 am

Guest


Guest

Damaged Eagle wrote:Another Green Failure Is?Wy7-i8fiD6V_vrFDXzztliEPEm-mq0hRn5tGZfS8VSg

Investing all those subsidies and grants into fusion and anti-matter research in an attempt to find a cheap way of creating a high energy output power plant that runs on them would have been a better use of our tax dollars.

*****SMILE*****

https://www.youtube.com/watch?v=i0NcFU838GY

Smile

A better use of our tax dollars would have been to invest in my shoe collection.

19Another Green Failure Empty Re: Another Green Failure 10/27/2012, 3:03 am

Guest


Guest

lol... ok imelda.

20Another Green Failure Empty Re: Another Green Failure 10/28/2012, 11:53 pm

Guest


Guest

riceme wrote:
Damaged Eagle wrote:Another Green Failure Is?Wy7-i8fiD6V_vrFDXzztliEPEm-mq0hRn5tGZfS8VSg

Investing all those subsidies and grants into fusion and anti-matter research in an attempt to find a cheap way of creating a high energy output power plant that runs on them would have been a better use of our tax dollars.

*****SMILE*****

https://www.youtube.com/watch?v=i0NcFU838GY

Smile

A better use of our tax dollars would have been to invest in my shoe collection.

Another Green Failure Is?Ra3lyXEv2cIrp1oUvZutLwqh-cD-kmp5hDeq10Vw0rU

*****CHUCKLE*****

https://www.youtube.com/watch?v=E7heTFgA7b4

Very Happy

21Another Green Failure Empty Re: Another Green Failure 10/29/2012, 10:39 am

Guest


Guest

Another Green Failure Energy-independence-obama-funny-blowhard-energy-political-poster-1283405541

22Another Green Failure Empty Re: Another Green Failure 10/29/2012, 11:29 am

Guest


Guest

nochain wrote:Another Green Failure OBlowjpg

EXCELLENT (although to be fair, I would find it just as funny if that were Romney's face). Gonna send that to my mom, who worked in wind a lot longer than I have.

LOL!!

23Another Green Failure Empty Re: Another Green Failure 10/29/2012, 11:31 am

Guest


Guest

Damaged Eagle wrote:

A better use of our tax dollars would have been to invest in my shoe collection.

Another Green Failure Is?Ra3lyXEv2cIrp1oUvZutLwqh-cD-kmp5hDeq10Vw0rU

[/quote]

Hey man, I'm here to help... I do what I can.

Laughing

24Another Green Failure Empty Re: Another Green Failure 10/29/2012, 6:14 pm

Guest


Guest

And this, folks, is how it's done... Denmark is RICH, not broke like our asses are, and they aren't bailing anybody out:

Denmark Won’t Support Vestas Through Financial Hardship
By Peter Levring and Gelu Sulugiuc - Oct 29, 2012 4:37 AM PT

The Danish government won’t provide direct support to Vestas Wind Systems A/S (VWS) should the world’s biggest maker of wind turbines need a bailout to stay afloat.

Aarhus, Denmark-based Vestas, which has been hurt by higher-than-budgeted costs to develop its V112 turbine and cuts in green energy subsidies, said in July it agreed with its banks to defer a so-called test of financial covenants, delaying loan payments after losses eroded its cash flow. The government is now saying it won’t step in to bridge any periods of financial distress at the company to prevent it going bankrupt.

“We cannot and will not support a single company,” said Martin Lidegaard, Denmark’s Energy Minister, in an e-mailed reply to questions. “It is against the government’s general state aid policy.”

Vestas in 2012 announced two rounds of job cuts that hit more than 3,700 employees, or a sixth of its workforce, to reduce fixed costs by more than 250 million euros ($323 million). The company is struggling to stay competitive as it faces declining demand in Europe and the U.S.

The world’s largest wind turbine maker would consider selling about 500 million euros in shares to existing investors if talks on a strategic cooperation with Mitsubishi Heavy Industries Ltd. (7011) fail, said two people with knowledge of the matter last month.
Shares Sink

Shares in Vestas sank as much as 3 percent to their lowest since Aug. 16, and were 2.9 percent down at 29.84 kroner as of 12:30 p.m. in Copenhagen, making it today’s worst performer in the country’s benchmark OMXC20 index. The stock has lost 52 percent this year, versus a 26 percent increase in the OMXC20.

The government’s position means Vestas’ clients will start speculating on how reliable a supplier the company is, according to Jacob Pedersen, an analyst at Sydbank A/S.

“Some turbine buyers will see Vestas as having a weaker financial strength,” Pedersen said by phone today. It’s now clear that “the white knight that some clients had assumed was there to justify using Vestas as a supplier won’t come,” he said.

Denmark, which is also home to the wind power division of Europe’s biggest engineering company Siemens AG (SIE), has set itself a goal of becoming a hub for new developments in green energy technologies, Lidegaard said.
No Discrimination

Still, the government won’t favor local suppliers in tenders and will base any decisions solely on competitive considerations, the minister said.

“Price will be the determining criterion,” in Denmark’s plan to tender new offshore farms with a capacity of 1,000 megawatts,” Lidegaard said. “There will be no discrimination.”

Shares in Vestas rose earlier this month after Danish Prime Minister Helle Thorning-Schmidt said tough economic conditions shouldn’t deter investment in renewable energy. Denmark plans to get half of its energy supply from wind by 2020, installing 3300 megawatts of new turbines with 1,500 MW offshore and 1,800 onshore.

Denmark’s wind industry, which employs about 25,500 people, made up 6.4 percent of the country’s industrial exports in 2011, reaching total sales of $8.96 billion, according to the Danish Wind Industry Association. Vestas’ European sales reached $3.3 billion last year, compared with total revenue of $7.5 billion.

Outside Denmark, austerity is weighing on subsidies for renewable energy in crisis-stricken Europe and the outlook for turbine makers is hampered by the expiration of tax breaks in the U.S. Increased supply of natural gas is also hurting demand for wind energy.

To contact the reporters on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net; Gelu Sulugiuc in Copenhagen at gsulugiuc@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

(Vestas in 2012 announced two rounds of job cuts that hit more than 3,700 employees, or a sixth of its workforce, to reduce fixed costs by more than 250 million euros ($323 million). The company is struggling to stay competitive as it faces declining demand in Europe and the U.S. Photographer: Ken James/Bloomberg)

http://www.bloomberg.com/news/2012-10-29/denmark-won-t-support-vestas-through-financial-hardship.html

25Another Green Failure Empty Re: Another Green Failure 10/29/2012, 7:09 pm

Yella

Yella

I realize I post a lot of nonsense just for the sheer hell of it and I also post things that I am into with all my heart and soul. Often people don't know which is which. But I feel certain that the Corporate Businesses that produce and sell fossil fuels energy do not want to see any successes with green energy and also feel certain that they will do whatever they can to destroy this competition. If I was the CEO of EXXON-MOBIL I could easily wipe out Solyndra and never be found to be responsible for it.

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