Yet Another Government-Funded “Green” Company Goes Bankrupt


Thursday January 26th, 2012   •   Posted by David Theroux at 10:56pm PST   •  

Logo of Ener1 Inc.

In an Associated Press article in the San Jose Mercury News,

“Parent of Obama-backed battery maker goes bankrupt,”Matthew Daly reports that yet another “green” company that received corporate welfare from the Obama administration has now gone bankrupt. In this case, the electric car-battery company Ener1 received $118 million from the Department of Energy in 2009 and Vice President Joseph Biden acclaimed the company in a special visit last year.

The parent company of an electric car battery maker that received a $118 million grant from the Obama administration filed for Chapter 11 bankruptcy protection on Thursday.

New York-based Ener1 said it has been affected by competition from China and other countries.

Ener1 subsidiary EnerDel received a $118 million stimulus grant from the Energy Department in 2009, and Vice President Joe Biden visited the company’s new battery plant in Indiana last year.

Ener1 is the third company to seek bankruptcy protection after receiving assistance from the Energy Department under the economic stimulus law. California solar panel maker Solyndra Inc. and Beacon Power, a Massachusetts energy-storage firm, declared bankruptcy last year. Solyndra received a $528 million federal loan, while Beacon Power got a $43 million loan guarantee.

Solyndra, of Fremont, Calif., was the first renewable-energy company to receive a loan guarantee under the 2009 stimulus law, and the Obama administration frequently touted it as a model for its clean energy program.

Since then, the company’s implosion and revelations that the administration hurried a review of the loan in time for a 2009 groundbreaking has become an embarrassment for President Barack Obama and a rallying cry for GOP critics of the administration’s green energy program.

The chairman of a House subcommittee that is investigating Solyndra said the latest bankruptcy showed that the administration’s clean energy program has failed.

“Unfortunately, you can now add Ener1 to the growing list of failed companies that went belly up after hundreds of millions of dollars in administration backing,” said Rep. Cliff Stearns, R-Fla. . . .

Click here for full article.




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