Leading Renewable Energy Company Abengoa, Once the Cat’s Meow, Fails
March 5 (EIRNS)–A leading renewable energy firm, Abengoa SA, which has been the darling of the City of London and Wall Street financiers, and green Malthusians, filed for bankruptcy, on Feb. 23. The Spanish company has carried out projects in the United States, and in 2010, it received a large United States loan guarantee from the Barrack Obama-Joe Biden administration to build a solar energy plant in Arizona. This is the second largest bankruptcy in Spanish history, according to the El Pais newspaper, and has global implications. This represents a snap shot of the significant vulnerability of a planned $40 trillion green speculative bubble in “renewables,” even before it is built.
This will be the third failure of Abengoa; having cooked its books in 2015—it was later found out—in order to present a picture of functionality, it collapsed in 2016 (wiping out almost all the value of its stockholders). It restructured its debt in 2018, and was in the process of attempting to restructure its current 6 billion euro/US$7.3 billion debt load, when the Spanish regional government of Andalusia unravelled a larger bail-out package by withdrawing its part of the package: an offer of a 20 million euro loan to the failing Abengoa.
The July 5, 2010 GreenTechMedia reported that in 2008, Abengoa ‘negotiated with the Obama-Biden administration, along with Energy Secretary Steven Chu, that the U.S. government would extend to Abengoa a $1.4 billion U.S. federal loan guarantee—a very large sum at that time for renewables—to build a “250 megawatt “Solana solar concentrating power plant near Gila Bend, 70 miles southwest of Phoenix, Arizona. It would be a parabolic trough plant, that would supposedly be able to store some of the solar rays in the form of thermal energy. But the trick was that the plant would generate about 38% of its rated capacity, meaning that it would generate almost two-thirds below what its rated capacity said.
Abengoa also built in Hugoton, Kansas a hybrid biomass plant, which would convert 350,000 tons of biomass/year into 25 million gallons per year of liquid fuel. Abengoa opened this plant in October 2014; the plant shut down operations in December 2015. Abenoga sold the plant, which cost more than $110 billion to build, to another company for $43 billion.
It has not been made known what will happen to the $1.4 billion Obama-Biden loan guarantee that was made to Abengoa.
It should be noted that many solar and wind turbine companies survive only through U.S. government tax breaks and subsidies. According to the America’s Power organization, solar and wind have received $82.1 billion in tax subsidies just between 2010 and 2018.
The failure of Abengoa is a cautionary tale of what may unfold from a $40 trillion geen speculative bubble. That would take down the energy and electricity generating process, and slash agro-manufacturing processes, and human population. It would also, through its insanity, collapse financially.