And Now…$2.3B To Clean Energy Providers…And Beyond

And Now…$2.3B To Clean Energy Providers…And Beyond

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The green energy revolution is in full swing and it’s supported by the White House.

From NY Times:

President Obama announced on Friday the award of $2.3 billion in tax credits for clean energy manufacturing — part of a broader push by his administration to stimulate job growth during the highest period of sustained unemployment in decades. […]

In a statement, Treasury Secretary Tim Geithner said the tax credits would spur an additional $5 billion of private capital investment in the clean energy manufacturing sector.

The tax credits are worth up to 30 percent of the cost of each project, resulting in a total investment of about $7.7 billion. Funding for the tax credits will come from the $787 billion economic recovery package approved by Congress in early 2009.

And this will mean jobs…

Tax credits were awarded to 183 projects in 43 states, and will create more than 17,000 jobs in clean technology manufacturing, the White House said. The projects must be in service by 2014, but approximately 30 percent of them will be completed by 2010, the administration estimated.

No doubt that this is the way forward and more companies will be jumping on this bandwagon. The question is how fast wil they adopt this tech?

More as it develops…

  • http://www.frankhagan.com/blog/ Frank Hagan

    There’s an Excel file at http://www.whitehouse.gov/sites/default/files/100108-48c-Selection-Final-With%20Projects.xls that lists the award winners. We are subsidizing such companies as Dow Corning (27 million), Dow Chemical (17 million), GE (115 million), PPG (1.6 million) and United Technologies (115 million).

    Who said the Dems were anti-big business?

    Still, I’m sure that in that 2.3 billion are a few well spent millions that will probably “save” some jobs. But I have to wonder why huge multi-national corporations like GE, with a market cap of 177 billion and 7% profit margin in Q3 of 2009 — for a whopping 99 billion in gross profit — is getting a subsidy. Especially at a time when smaller businesses are folding because they can’t obtain capital.

    You can see GE’s financial returns for Q3 2009 at http://finance.yahoo.com/q/ks?s=GE

    Perhaps there’s more to the story on these grants, and the

  • http://www.frankhagan.com/blog/ Frank Hagan

    Sorry, I didn’t finish the last sentence.

    Perhaps there’s more to these grants, and the money to huge companies like GE are justified. But I suspect its mainly because GE, Dow, PPG and UT have large enough staffs to write the proposals and shepherd the applications though the selection process (read: lobbyists on staff).

  • Doomed

    Frank

    Do not forget that GE owns MSNBC.

    Green is great.

    Dont guess anyones ever thought of gas stations being changed in there design.

    Instead of pulling into a gas station to have the gas tank refilled. How about building electric cars in which the batteries can easily be replaced by attendants who charge a nominal fee of say 10 bucks to take YOUR batteries out and replace them with a fully charged battery pack?

    It would provide jobs for millions of people because GRANNY aint gonna be doing a self serve battery change herself.

    Im so smart.

  • http://thegameiam.livejournal.com David

    I sure am glad that we have government to pick our industrial winners and losers! Nosiree, none of those “invisible forces” of the market for us…

  • http://www.frankhagan.com/blog/ Frank Hagan

    Better Place would like your sentiments, Doomed. They are planning to install 100 battery swap stations in Israel, and others in Oregon, California and some Euro countries by 2011.

    @David – you’re right, of course. The problem with government subsidizing certain industries is that they pick winners (and by correlation, declare losers). Green diesel, which unlike bio-diesel can be used in any diesel vehicle, lost out to ethanol and bio-diesel due to subsidies. The market, in the end, is the loser.