Thursday, July 5, 2012

Lights go dim on another energy project.. Geothermal losses pile up

A geothermal energy company with a $98.5 million loan guarantee from the Obama administration for an alternative energy project in Nevada - which received hearty endorsements from Energy Secretary Steven Chu and Senate Majority Leader Harry Reid - faces financial problems, and the company’s auditors have questioned whether it can stay in business.

Much like Solyndra LLC, a California solar-panel manufacturer with a $535 million federal loan guarantee that went bankrupt, Nevada Geothermal Power (NGP) has incurred $98 million in net losses over the past several years, has substantial debts and does not generate enough cash from its current operations after debt-service costs, an internal audit said....

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