Solyndra, the US manufacturer of cylindrical thin-film PV modules that has received copious federal support, is filing for bankruptcy and laying-off 1,100 workers.
The California company blames ?global economic and solar industry market conditions? and says it has suspended manufacturing operations, resulting in immediate layoffs of temporary and full-time staff, in advance of a Chapter 11 bankruptcy filing.
The move is a blow to the Obama Administration?s renewable energy agenda, just as the battle to extend expiring federal incentives begins in earnest this autumn and budget-cutting Republicans have renewables in their crosshairs.
Solyndra benefited from a $535m loan guarantee to finance construction of the first phase of Fab 2, an advanced manufacturing plant in Fremont, California, to make copper indium gallium diselenide modules for the commercial rooftop market.
President Obama visited in May 2010, calling it ?a testament to American ingenuity and dynamism? and holding up Solyndra as an example of how the US can regain leadership in the global solar industry with the right government support. The guarantee ? which closed in September 2009, the first to do so under the Department of Energy?s Loan Guarantee Program ? was later the subject of a Congressional probe over whether the company was properly vetted.
Update: The Department of Energy has addressed the Solyndra bankruptcy in a blog post penned by Dan Leistikow, director of the public affairs office. He notes that the Solyndra loan guarantee was a work of both the Obama and Bush administrations, and that private investors also saw great potential in the company, backing it to the tune of $1bn.
"We have always recognized that not every one of the innovative companies supported by our loans and loan guarantees would succeed, but we can?t stop investing in game-changing technologies that are key to America?s leadership in the global economy," Leistikow writes, adding, "Congress recognized the risks inherent in such an effort, and wisely set aside funding to offset any potential defaults or losses.
That funding made it possible to support such a broad, promising portfolio of investments, and is significantly greater than the amount that the government stands to lose on this transaction."
In a statement, Solyndra says it had strong growth in the first half of 2011, including ?a number of orders for very large commercial rooftops?, but ?could not achieve full-scale operations rapidly enough to compete in the near term with the resources of larger foreign manufacturers?.
Fab 2 was expected to reach annual production capacity of 200MW this year. The company had shipped more than 100MW of modules. Its 2010 revenues were approximately $140m.
Solyndra further blames a ?severe compression of prices? stemming from global PV oversupply and a decline in credit markets.
In February, Solyndra raised a $75m credit facility for working capital, underwritten by existing investors ? led by Argonaut Ventures ? and restructured its debt. In announcing the bankruptcy Wednesday, chief executive Brian Harrison says the company was unable to raise ?incremental capital?.
Solyndra, founded in 2005 by Christian Gronet, who departed earlier this month, will evaluate options including a sale, and licensing of its technology and manufacturing expertise.
Benjamin Romano, Seattle
comments bySource: http://www.rechargenews.com/business_area/finance/article275674.ece
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