Federal Loan | DOE Loan Curse: First Solar Latest To Face Funding Delay
Green technology companies final year scrambled to spike down billions of dollars in sovereign loan guarantees to erect solar power plants, breeze farms and electric automobile factories before the module expired.
Be clever of what you instruct for. Earlier this week Fisker Automotive laid off workers after the Department of Energy cut off its loan pledge for unwell to encounter milestones in the prolongation of its electric hybrid Karma sports sedan. That triggered a slip in the batch cost of electric van battery creator A123, other target of a sovereign loan pledge that depends on sales to Fisker for “a significant portion” of its revenues, according to its financial filings. A123 has moreover invested $20.5 million in Fisker.
Then on Thursday solar row and power plant builder First Solar disclosed that it has nonetheless to take the primary financing from a $646 million Department of Energy loan pledge for a solar power plant beneath building in the Mojave Desert northeast of Los Angeles . If the allowance doesn’t beginning issuing by Feb. 24, First Solar will have to purchase back the 230-megawatt Antelope Valley Solar Ranch One from appetite firm Exelon , that acquired the plan final September.
In the arise of the conflict over final year’s failure of Solyndra, the Silicon Valley solar row creator that had been awarded a $535 million loan guarantee, the Energy Department appears to have turn extra-vigilant in creation certain that recipients encounter contractually thankful milestones.
The reason is to First Solar holdup? The companysaid in its filing that the Energy Department behind transferring the allowance “pending fortitude of an excellent building agree to issue.” In an e-mail, First Solar orator Alan Bernheimer mentioned the firm was not “providing any extra criticism on the agree to issue.”
If the Energy Department does not lift the grip on the supports or expand the Feb. 24, deadline, First Solar contingency pay Exelon $75 million and other expenses to purchase back the Antelope Valley solar project, according to the filing.
The future loss to First Solar would be ample larger if it couldn’t sell the plan to other buyer: Exelon had affianced to deposit up to $1.36 billion in the solar power station, that includes shopping thousands of thin-film solar panels from First Solar and profitable the firm to run and sustain the Antelope Valley Solar Ranch, or AVSR.
“If First Solar were to repurchase AVSR, the reacquired plan would then turn existing for sale by First Solar to other party,” the firm settled in its filing. “First Solar expects its stream cash and other capital resources would be sufficient to capacitate First Solar to repurchase AVSR, if necessary, whilst discussion First Solar’s working capital and capital output needs.”
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