We discussed geothermal as a viable alternative energy source not long ago. It's not all about the technology however, as good management and planning are significant determinants of success.
In this emerging case, the DOE guaranteed $98.5MM for the 36 Mw Blue Mountain Geothermal project in Nevada, but the company (Nevada Geothermal Power Co, Inc.) is in trouble.
About to Go Bust After Hefty Obama Loan
Posted by Jim Hoft
The US Department of Energy blew $98.5 million on the Nevada Geothermal Power company.
Now the company is about to go bust.
The Department of Energy brags about their 498.5 million loan to Nevada Geothermal Power.
Now, the Nevada geothermal plant is about to go bust.
Thanks Barack.
The New York Times ( http://www.nytimes.com/2011/10/03/business/a-us-backed-geothermal-plant-in-nevada-struggles.html ) reported:
In a remote desert spot in northern Nevada, there is a geothermal plant run by a
politically connected clean energy start-up that has relied heavily on an Obama administration loan guarantee and is now facing financial turmoil.
The company is Nevada Geothermal Power, which like Solyndra, the now-famous California solar company, is struggling with debt after encountering problems at its only operating plant.
After a series of technical missteps that are draining Nevada Geothermal’s cash reserves, its own auditor concluded in a filing released last week that there was “significant doubt about the company’s ability to continue as a going concern.”
It is a description that echoes the warning issued in 2010 by auditors hired by Solyndra, which benefited from the same Energy Department loan guarantee before its collapse in August caused the Obama administration great embarrassment.
http://www.thegatewaypundit.com/2011/10/another-98-5-million-down-the-drain-nevada-geothermal-about-to-go-bust-after-hefty-obama-loan/
Hmmm...the dreaded 'going concern' warning. Let's play Name-the-Crony! It's Nevada, so Harry Reid immediately comes to mind.
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