Obama while on his recent "Pork Tour" in Indiana talked about how Green Jobs will revive the economy. Someone forgot to tell him that Biotown USA is Bankrupt!
VeraSun Energy the nations second largest ethanol producer announced late Friday it is seeking Chapter 11 bankruptcy protection after skyrocketing corn costs and a deterioration in capital markets left the company short on cash.
VeraSun, was founded in 2001, and the company went public in June 2006 . Corn was cheap and plentiful, gas costs were rising rapidly and refiners were clamoring for more ethanol to use as a cleaner-burning alternative to the additive MTBE.
However Gas prices came down dramatically and corn prices rose making Ethanol production more cost ineffective.
The company's operations includes a plant in Linden, Ind., and last year they suspended construction of a plant in Reynolds, Ind., that was part of the Indiana's highly touted BioTown USA project
Valero energy has submitted a bid for 280 million for the five curent VeraSun energy plants a move intended to cut costs for reaching biofuel standards as required by the Environmental Protection Agency.
The Indiana State Department of Agriculture began a program to make Reynolds Indiana a small town of about 500, an energy self-sufficient community, able to subsist almost entirely on locally produced alternative energy. Called "BioTown, USA", the pilot project involved the conversion of local vehicles to run on ethanol and biodiesel fuels and converting animal waste into electricity and natural gas. The town was to be a model for "green towns across the country.
But it is not just Ethanol producers in trouble. Solar companies are in trouble as well.
Applied Materials based in Santa Clara County California ,a solar factory equipment maker, announced it will start multi-week shutdowns on its factories and doesn't expect to sign new contracts for solar equipment in the next few quarters, said Applied Materials CEO Mike Splinter Tuesday.
Other solar companies are in trouble as well, companies like Solar energy companies like OptiSolar, Ausra, Heliovolt and SunPower, have all had to lay off workers
Wind Farms are not faring well either, difficulties in getting Environmental sign off and land acquisitions and local zoning regulations have caused many problems with the wind industry. Texas billionaire T. Boone Pickens, a promoter of wind power, have cut back or delayed plans for wind farms.
Despite Obama's desire that "green jobs" will be the salvation of the United States, a "green job" is hardly a job with any more stability or security in a global economy and apparently you can't 'force' people to pay more just to be "green".