By Tom Borelli:
The Department of Energy (DOE) threw a life line yesterday to solar energy company First Solar.
After concerns that the company’s deal with Exelon to supply a huge solar energy project would fall apart because First Solar was not getting the anticipated support from the government, yesterday Forbes reported that the DOE’s loan guarantee was back on track.
“First Solar had entered into a deal with Exelon Corp to build and operate the Antelope project for $1.36 billion. Exelon Corp reserved the right to walk away from the project in case the project failed to receive funds from Department of Energy by the 23rd of February. The DOE had approved $646 million in loans for the project, but had delayed processing the funds because of issues encountered in obtaining local permits.  The issues were resolved in mid-February, ending the uncertainty related to the sale of the project.”
First Solar’s stock has been getting hammered this year with its share price trading at five year lows and with the company possibly on the way to bankruptcy. The DOE loan caused a huge bump in the stock price and rescued a failing company at a critical juncture.
With Obama’s focus on green energy, the President could not allow another solar company to fail.
Read entire Forbes story here.