WSJ-Dow Jones special writer, Yuliya Chernova has an instructive piece on venture-funding for clean-technology, or green-tech as it is sometimes called. Briefly, VCs are losing confidence in this field. Duh.
Meanwhile, on the local front, we read, “SolarWorld AG, the parent company of SolarWorld Industries America Inc., is expected to trim 10 percent of its global workforce…” Last year, SolarWorld closed their SoCal factory, to “consolidate” operations in Oregon. Uh, right.
This German company successfully whined to Congress, no doubt aided by many of its industrial and enviro friends, blaming Chinese imports for lack of sales. The reality is that demand isn’t there.
” Last month, the U.S. Commerce Department ruled in SolarWorld’s favor calling for tariffs of up to 250 percent.” How long will the Chinese remain our friends?
Okay, how about wind? Also from the PBJ Sustainability section, “Based in Portland, [Spain-based] Iberdrola Renewables scrapped plans for two South Dakota wind farms, a planned total of 500 megawatts, citing economic conditions including depressed energy costs.” Oh, you mean it’s not the d*mned Chinese?
Vestas Wind Systems, “the world’s largest wind turbine manufacturer” on June 15 announced it was closing its Houston office. And in moves reminiscent of the game with three little cups with a ball in one, the company announced early in 2012 that,
… as many as 2,335 employees worldwide — including 182 in the U.S. — would receive layoff notices during 2012. The company has 3,000 U.S. employees and maintains its headquarters in Portland, where employees recently moved into a spanking new headquarters building, and manufacturing facilities in Denver.
That’s just a tiny sample of the many closings and excuses used in an industry that is collapsing.
Investment lessons? Unless you know how to do short sales, which IFO doesn’t, don’t invest in green tech. Remember, Congress cannot repeal Reality.