Business

Failed Georgia-Based Ethanol Plant Sold — Taxpayers Lose Millions

Failed Georgia Based Ethanol Plant Sold Taxpayers Foot the Bill

“The failed Range Fuels wood-to-ethanol factory in southeastern Georgia that sucked up $65 million in federal and state tax dollars was sold Tuesday for pennies on the dollar to another bio-fuel maker with equally grand plans to transform the alternative energy world,” writes Dan Chapman of The Atlanta Journal-Constitution.

The Courier Herald of Dublin reports the Range Fuels facility in Soperton, GA, was sold to the New Zealand-based LanzaTech for $5.1 million.

Wait a minute—that means the same billionaire was involved on both ends.

LanzaTech’s main financial backer is the California entrepreneur Vinod Khosla. Also the co-founder of Sun Microsystems, Khosla threw in his lot with alternative energies and decided to not only bankroll the now-defunct Range Fuels, but also secure its government loans.

Interesting.

The Atlanta Journal-Constitution reports that Range Fuels cost U.S. taxpayers $64 million and Georgia taxpayers another $6.2 million. Authorities are trying to do damage control by claiming that the $5.1 million from this weeks’ sale will at least help offset losses suffered by the U.S. Department of Agriculture. That’s not very consoling.

But wait! There’s more.

Although LanzaTech hasn’t been given the same type of loans Range Fuels received, the company is still getting $7 million from the U.S. departments of Energy and Transportation to “assist in the development of alternative fuels,” Chapman writes.

Sam Shelton, director of research programs at Georgia Tech’s Strategic Energy Institute, was unimpressed with Range Fuels’ plans and technology. And now it looks as if he was correct.

“It was too damn big a risk for an apparently unproven technology and the due diligence I personally performed on Range would not entice me to invest in it,” Shelton told The Atlanta Journal-Constitution.

“Government should not be in the venture capital business selecting technologies,” he added.

There were high hopes for Range Fuels when it first started. Dan Chapman reports:

Range was the alternative energy rage in 2007 when then-Gov. Sonny Perdue held a press conference to announce dot-com billionaire Khosla would help finance the $225 million wood-to-ethanol plant in economically depressed Treutlen County, 155 miles southeast of Atlanta.

Later that year, at a groundbreaking in Soperton’s industrial park, Perdue boasted that “Range Fuels represents a new future for our country.” And Georgia, with its 24 million forested acres, would become world renowned for cellulosic ethanol which, conceivably, turns pine trees and scrap into fuel.

The Bush administration’s Energy Department steered a $76 million federal grant to Range. The Department of Agriculture followed up with an $80 million loan guarantee. Georgia officials pledged $6.2 million. Treutlen County, one of the state’s poorest, offered 20 years worth of tax abatements and 97 acres in its industrial park.

Private investors allegedly supplied the effort with $158 million in startup cash, which means, when you add it all up, Range Fuels raised more than $320 million. Yet, somehow, despite all of its financial backing, the company was unable to accomplish its mission of converting wood into ethanol. Having been met with failure, the company therefore decided to close its doors.

And they didn’t even come close to creating 70 jobs.

Alison Tyrer, spokeswoman for the Georgia Department of Economic Development, said parts of the original deal with Range may remain in place with LanzaTech, according to The Atlanta Journal-Constitution.

Range Fuels had until 2015 to invest at least $150 million, and create at least 50 jobs, before the state would consider “clawing back” the investment. This means that — to no one’s surprise — the taxpayer-funded investments will most likely never be seen again.

“The accountability is still there,” Tyrer assured. “Technology is almost by definition innovative and with innovation there’s a certain amount of risk. But the state is as prudent as it can possibly be with taxpayer money.”

Georgians may beg to differ.

“We are disappointed that this company did not succeed,” said USDA spokesman Justin DeJong. “It’s important to remember that USDA has a long history of successful lending that supports rural homeowners, business owners, utilities and cooperatives, and over 90 percent of USDA’s loans are successfully repaid.”

“Successful” track record or not, it’s safe to say that those who spearheaded the Range Fuels investment made a severe miscalculation. Not to worry: they should be able to console themselves with the fact that it wasn’t their own money they gambled.

Comments (116)

1 2 3
  • Hiswill
    Posted on January 5, 2012 at 5:35pm

    Finally, something that was really Bushes fault.

    Report Post » Hiswill  
    • silentwatcher
      Posted on January 5, 2012 at 6:21pm

      so,,,another b.s. loan to the new company, and so on, and so on, and so on,,,,,,,,,,,,

      Report Post »  
    • Jim in Houston
      Posted on January 5, 2012 at 6:28pm

      Note the year 2007. That was when the dimocRats took over congress. Seems too much of a coincidence.

      Report Post »  
    • Cornflake
      Posted on January 6, 2012 at 1:16am

      LOL, this time I agree! We put our food in the fuel, which in turn destroys the engines. Wait, that will create jobs because we’ll need to replace cars sooner! It had a higher rate of pollution, and got less gas mileage, so who thought this was a good idea? Are children running our government. Uh, kids educated by the federal government maybe? It seems that since the feds stuck their noses in the educational systems within our states that our children our getting less education that will help them in their lives.

      Report Post »  
    • jb.kibs
      Posted on January 6, 2012 at 2:04am

      We just keep getting more proof why the Federal Government needs to be reduced majorly.
      all they do is take money from hard working people and give it to their loser friends (Special interests). this is just getting old.. are the sheep ever going to see that wolf? probably not…

      Report Post »  
    • charleyrocks
      Posted on January 6, 2012 at 6:11am

      And another one bites the dust, someone got very rich from the american government, hey all Americans should try opening up a plant to save energy collect millions and then sell for penny’s

      Report Post » charleyrocks  
    • Give Me Newt Or Give Me Death
      Posted on January 6, 2012 at 1:07pm

      True. It looks like both parties are to blame for this mess.

      Report Post » Give Me Newt Or Give Me Death  
    • 2theADDLED
      Posted on January 6, 2012 at 2:35pm

      We could build a distillery but couldn’t build a refinery ? Somethings wrong.

      Report Post »  
    • INOGAWD
      Posted on January 7, 2012 at 11:49am

      Queen Nancy and Prince Harry were in charge of
      110th. Congress at the time this money was distributed..
      wonder if she had money invested in this venture ?
      HMMMM ???? be interesting to check out……….

      Report Post » INOGAWD  
    • INOGAWD
      Posted on January 7, 2012 at 1:22pm

      Where are the “Tree Huggers” ??

      Report Post » INOGAWD  
  • GollygeeMrwilson
    Posted on January 5, 2012 at 5:15pm

    Why don’t we just start firing our boilers with dollar bills. They probably will burn hotter than ethanol or corncobs anyway. How’s that for “green energy”?

    Report Post » GollygeeMrwilson  
    • MCDAVE
      Posted on January 5, 2012 at 5:51pm

      Cheaper for the tax payers too

      Report Post »  
    • ninja
      Posted on January 5, 2012 at 8:42pm

      Yes. We could have made money buy just burning the damn thing to the ground.

      Report Post »  
  • CS_GUY
    Posted on January 5, 2012 at 5:10pm

    Screw the courts, hang everyone involved. Including everyone in the administration who even reviewed this travesty of accounting.

    Report Post »  
  • commonsenseguy
    Posted on January 5, 2012 at 5:07pm

    can anyone say “‘ watch the other hand in these green job cases,it is hands. in other communist news,the soon to be the next vice communist president hillary clinton just signed a u n small arms treated, better get your guns cleaned and hide them asap,it want be long until the regime is going door to door looking for them,you know,the government knows best what is good for it’s people.

    Report Post »  
  • Drakkhanlord
    Posted on January 5, 2012 at 5:06pm

    obama energy plan
    http://www.youtube.com/watch?feature=player_detailpage&v=ykqqzBpKWjk
    Food prices rise due to ethanol…
    http://www.washingtontimes.com/news/2009/apr/09/ethanol-policies-fuel-food-price-rise/

    Report Post » Drakkhanlord  
  • supressorgrid
    Posted on January 5, 2012 at 5:04pm

    Green technology is the study of ways to take my green and turn it into some well connected billionairs green. And also a perpetual cash machine for politicians reelection campaigns. THROW THEM ALL THE HELL OUT! I dont give a damn if there are a few good ones, let God sort them out later. When the toilet is full you flush all the turds.

    Report Post »  
    • Socialist Pride
      Posted on January 5, 2012 at 5:13pm

      In a Socialist Economy, the State would still own the land and could tax the new owners. Socialism is Profitable.

      Report Post » Socialist Pride  
    • RightThinking1
      Posted on January 5, 2012 at 5:55pm

      @Socialistpride
      What a revealing insight! Like most socialists, you have the economic insight of a worm. When the company went bankrupt, the property DID become the property of the state…, THAT is how the loan was procured in the first place (unlike Solyndra), by using the plant as collateral. The problem is that it isn’t worth enough to pay off the loan, not even a fraction. Got it? The property will taxed regardless of who owns it…, unless, unless, as you suggest, the state owns it, in which case ZERO tax would be collected.
      Do you ever actually THINK about these things? What frightens most is that you may actually be a voter.

      Report Post »  
    • Lord_Frostwind
      Posted on January 5, 2012 at 10:02pm

      So we’re putting the same fools in charge of land, property and the economy that have been in charge of Section 8 housing, American Infrastructure, the housing market and a lot of other wonderful flops. I would honestly trust a sixteen year old high school student with an Abrams Main Battle Tank with a full load of munitions than I would almost all politicians with running the economy.

      Report Post » Lord_Frostwind  
  • DYNA
    Posted on January 5, 2012 at 5:04pm

    I wonder if USDA spokesman Justin DeJong would have invested his own money on this project.
    So another loss for the American citizen taxpayer and a gain for the socialists of New Zealand?
    And do we still have to pay for the government bureaucrats and their pensions that promoted this
    terrible waste of taxpayers dallors?

    Report Post »  
  • RightThinking1
    Posted on January 5, 2012 at 4:59pm

    Ideologically driven wonks dream these things up, and the taxpayers take the hit…, over, and over. Where is the outrage in the media? Why isn’t the Solyndra scandal front page news? It isn’t just anecdotal that ONE Green thing is a wasteful mess, they almost ALL are. It‘s like the Emperor’s new clothes. Here’s another nice one:
    http://wattsupwiththat.com/2011/10/09/green-fail-foia-shows-dangerous-university-biomass-power-plant-frought-with-problems-closures-explosion/
    Or how about:
    http://news.cnet.com/8301-11128_3-20127778-54/flywheel-storage-maker-beacon-power-declares-bankruptcy/

    Report Post »  
  • mrsalvage2
    Posted on January 5, 2012 at 4:55pm

    Yet another Corporate Welfare project bites the dust.

    Taxbreaks and land for more empty promises.

    You know, Corporate Taxes are supposed to exist in order to keep corporate products competative with small holder family proprietorships.

    Instead, the Counties ahve becoem JobWhores, looking for jobs instead of leaving their people free to be productive.

    The rich of the county do not like that, because prosperity will then cause wages to rise as labor finds something better than their stinking, decaying 19th Century equiped plant to work in.

    I have seen this myself in the Smokeys

    Report Post » mrsalvage2  
  • hamline66
    Posted on January 5, 2012 at 4:55pm

    This is how the stimulus was designed to work—spend taxpayer dollars on businesses that can’t possibly work ! There are lots of them out there, we are just seeing the start of tax money being thrown away by this administration.

    Report Post »  
    • MCDAVE
      Posted on January 5, 2012 at 6:00pm

      Designed to award Obama’s friends and campaign Contributors with millions of the tax payers dollars..

      Report Post »  
  • Rayblue
    Posted on January 5, 2012 at 4:55pm

    Whether you want to believe it or not, this was the intent all along.
    To shovel as much money into the pit as would fit and continue the process till shambles results. For no other reason than a thinly masked, orderly depression.

    Report Post » Rayblue  
  • NOBALONEY
    Posted on January 5, 2012 at 4:52pm

    Range Fuels, joins General Motors, Solyndra as Boondoggles that stick the Taxpayer with the bill. While the ‘fat DC cats” can spend their Christmas vacations in Hawaii as the 1%!

    Report Post » NOBALONEY  
  • CatB
    Posted on January 5, 2012 at 4:51pm

    Scr*wed again.

    Report Post »  
  • cessna152
    Posted on January 5, 2012 at 4:50pm

    I sell processing equipment to these plants, this is no surprise. Their business decisions and purchasing habits are quite strange. Now I know why… it is a shame because there is a potential for the newer bio fuels that use anything that can ferment. IE-Grass clippings, citrus peel waste,algae, etc. You name it….

    Whenever tax payer money is involved there is ALWAYS waste and corruption!

    Report Post » cessna152  
  • Robert-CA
    Posted on January 5, 2012 at 4:50pm

    Yeah who cares .
    The money is not coming out of their pockets it’s coming out of our pockets .

    Report Post » Robert-CA  
  • Nevermind
    Posted on January 5, 2012 at 4:47pm

    “Snowleopard {gallery of cat folks}
    Posted on January 5, 2012 at 4:40pm
    Indeed and impeach Obama plus charge all the crooks he supports for their criminal activities.”

    Impeach Obama? Did you read ? The money was given to them by Bush in 2007, i dont know if people on this site are just plain stupid or so far up the GOP’s butt they cant think straight. I believe the first option is more than likely

    Report Post »  
    • BOMUSTGO
      Posted on January 5, 2012 at 4:55pm

      Obama is a fraud!

      Report Post » BOMUSTGO  
    • Drakkhanlord
      Posted on January 5, 2012 at 5:21pm

      bush , obama…same thing.
      whats your point…?

      Report Post » Drakkhanlord  
    • NOBAMA201258
      Posted on January 5, 2012 at 5:39pm

      Nevermind if you voted for obama change your name to nomind,isn‘t it so f’ing cool to have a black president? Too bad you idiots didn’t know WTF you were doing

      Report Post »  
    • INOGAWD
      Posted on January 7, 2012 at 1:20pm

      @ Drakkhanlord
      Posted on January 5, 2012 at 5:21pm
      bush , obama…same thing.
      whats your point…?

      Let’s not make the same mistake and give Obumbles
      a second Term !!

      Report Post » INOGAWD  
  • commonsenseguy
    Posted on January 5, 2012 at 4:46pm

    is any one really surprised with this administration running things,it is a wonder every business is not folding, i mean with 15% of the u s corn yield going to ethanol production why would the government worry about this plant, obama’s oil buddies will just buy it and reopen it in china,well that is okay,at least there is a little more corn fixing to be available to make food with, o wait not really,they will send to some foreign country that hates us.o well nothing to see here,move a long,and we will soon be over to see how many guns you have in your home,so get on home.

    Report Post »  
    • Bill Rowland
      Posted on January 5, 2012 at 6:08pm

      Remeber you should invest in precious metals – buy lead.

      If you voted for Obumbler inn 2008 to prove you were not a racist – Vote against him in 2012 to prove you are not an idiot

      OMG

      Report Post »  
  • the white guy
    Posted on January 5, 2012 at 4:45pm

    what a cluster f”"k! these GREEN jobs have turned out to be. it is not suprising to see millions of tax payer dollars wasted.just pulling the wool over your stupid eyes.

    Report Post »  
    • commonsenseguy
      Posted on January 5, 2012 at 4:54pm

      most of the taxpayers money is not being wasted,it is going to help get obama reelected,just like the solar company that went under and a host of other campaign donors who’s got a bailout and folded,they can not account for most of the money, if the i r s would just look under their rugs or obama war chest,they would more than enough to help pay china off.

      Report Post »  
  • EqualJustice
    Posted on January 5, 2012 at 4:44pm

    You know, we have wasted So many TAX DOLLARS on these failed initiatives and I have to wonder.. WHERE’S the OUTRAGE? It’s OUR money!”
    * Mountain Plaza Inc.: $424,000
    * Solyndra: $535,000,000
    * SunPower: $1,200,000,000
    * Grand total: $1,735,424,000
    Is First Solar next to scale down or maybe CLOSE? ($3.0 billion in loan guarantees)

    Report Post » EqualJustice  
    • cessna152
      Posted on January 5, 2012 at 4:58pm

      …and that is only 4-5 that we know of. I would say there are HUNDREDS more we don’t know of. See, dopes like Encicon support this corruption then blame us for it happening.

      Report Post » cessna152  
    • Give Me Newt Or Give Me Death
      Posted on January 6, 2012 at 1:08pm

      when will it end?

      Report Post » Give Me Newt Or Give Me Death  
  • Baddoggy
    Posted on January 5, 2012 at 4:43pm

    Thank you Big Government people like Rick Santorum, Mitt Romney and Newt Gingrich. We love what you have done to us over the years….Sarcasm thrown in for free….

    Ron Paul 2012 to end this BS!

    Report Post » Baddoggy  
    • CS_GUY
      Posted on January 5, 2012 at 5:10pm

      Stretching it a little thin maybe?

      Do you have a net big enough to fit yourself in it? Good, use it.

      Report Post »  
    • Give Me Newt Or Give Me Death
      Posted on January 6, 2012 at 1:09pm

      Paul has no plan and you know it. It sounds good, but how do you plan on closing 5 gov’t depts.?

      Report Post » Give Me Newt Or Give Me Death  
  • EqualJustice
    Posted on January 5, 2012 at 4:40pm

    Add them to the list from 2011 alone.. GREEN energy does nothing but COST a lot of GREEN!
    BP Solar Announces it’s shutting down December 2011
    Energy Conversion Devices Announces temporary suspension of all factories November 2011
    Evergreen Solar Declares bankruptcy August 2011 REC Cuts silicon wafer production in Norway January 2012
    Satcon Technology Closes inverter factory in Canada January 2012
    Schott Solar Closes cell factory in Germany December 2011
    Solar Millennium Files for insolvency December 2011
    Solland Solar Exits cell production January 2012
    Solon Shuts down U.S. factory. Declared insolvency. December 2011
    SolarWorld Shuts U.S. factory September 2011
    Solyndra Declares bankruptcy August 2011
    SpectraWatt Firesale for $4.9 million September 2011
    Stirling Energy Systems Declares bankruptcy September 2011

    Report Post » EqualJustice  
    • Chuck Stein
      Posted on January 5, 2012 at 4:47pm

      Thanks for the synopsis. Dollar amounts lost for each fiasco would make the point even better.

      Report Post »  
    • commonsenseguy
      Posted on January 5, 2012 at 4:49pm

      some one in the media should make this list available to the country about a week before election time along with a list of the lies and how much money obama and the democommies have spent and borrowed since obama took office and a list of his union thug buddies and a list of his communist supporters everyone knows the biggest one, george soros.

      Report Post »  
    • HKS
      Posted on January 5, 2012 at 4:50pm

      Well, yal, but they had a lot of fun.

      Report Post » HKS  
    • lamarwilly
      Posted on January 5, 2012 at 7:31pm

      In 35 minutes on the internet I was able to find this info of total amounts.
      Add them to the list from 2011 alone.. GREEN energy does nothing but COST a lot of GREEN!

      BP Solar Announces it’s shutting down December 2011 reason for leaving is that government loans and incentives are coming to an end.

      Energy Conversion Devices Announces temporary suspension of all factories November 2011 ECD received millions of dollars worth of state tax breaks, ($96 million in state guarantees alone) but not a DOE-backed loans. ECD is owned by Uni-solar which did receive guaranteed loans.

      Evergreen Solar Declares bankruptcy August 2011 State of Mass. $58 million in loans, $5.3 million in weatherizeation federal dollars. Plus Financed with $984,400 in federal funds available under the American Recovery and Reinvestment Act (ARRA) and $758,388 in federal low-interest Clean Renewable Energy Bonds for Mass. Plant. Plus a $150 million federal loan. Had 133 total employees in the US. Evergreen also lent money to a sister company EverQ that are not listed in bankruptcy since happened in days before the filing.

      REC Cuts silicon wafer production in Norway January 2012

      Satcon Technology Closes inverter factory in Canada January 2012 Along with Sunpower Corp received $1.2 billion loan guarantee

      Schott Solar Closes cell factory in Germany December 2011 also laid off employees in New Mexico. Loan guarantees and tax incentives for plant

      Solar Millennium Files for insolve

      Report Post »  
    • lamarwilly
      Posted on January 5, 2012 at 7:32pm

      continued:

      Solar Millennium Files for insolvency December 2011 The company obtained federal and state construction permits to build a 1,000-megawatt solar power plant in California, called Blythe Solar, and snagged a $2.1 billion loan guarantee from the Department of Energy to help finance the project.

      Solland Solar Exits cell production January 2012

      Solon Shuts down U.S. factory. Declared insolvency. December 2011 Were awarded $2.1 billion in loan guarantees, but said they were turning it down.

      SolarWorld Shuts U.S. factory September 2011 $12 million in tax credits to build plant

      Solyndra Declares bankruptcy August 2011 $535 million.

      SpectraWatt Firesale for $4.9 million September 2011 taxpayers out $528 million (they have assets worth $34 million).

      Stirling Energy Systems Declares bankruptcy September 2011 sold two projects of 1375 mega watts of power to sister company Tessera Solar, which intern sold to financing companies able to obtain gov’t loans.

      First Solar: Stock 2 years ago 25 billion dollars, Stock Dec 2011 2.5 billion dollars
      1.5 billion dollars was given to Next Era Energy from our government to buy a plant from FirstSolar Also sold another plant (Desert Sunlight) for $1.46 billion which was a government loan to Jeffrey Immelt of GE. Exelon bought the Antelope Valley plant for an undisclosed amount, Exelon (merger) was arranged and advised by Rahm Emanuel with David Axelrod as an advisor, with large amounts of government guaran

      Report Post »  
  • SpankDaMonkey
    Posted on January 5, 2012 at 4:39pm

    .
    You’d get the same ammount of energy, shoving a hose up your behind and eating a steady diet of chili & beans…………….

    Report Post » SpankDaMonkey  
  • gmoneytx
    Posted on January 5, 2012 at 4:38pm

    Such a deal! I don’t know what to think, the whole system is corrupt.

    Report Post » gmoneytx  
  • IMPEACHBHO
    Posted on January 5, 2012 at 4:38pm

    There is talk of $5.00/gal gas this summer. Thank you BHO.

    Report Post » IMPEACHBHO  
    • I.Gaspar
      Posted on January 5, 2012 at 4:45pm

      He won‘t be happy til it’s $10.
      With a little luck he’ll be in prison before that happens.

      Report Post »  
    • cessna152
      Posted on January 5, 2012 at 4:52pm

      He won‘t be happy until it’s $20 per gallon and we all live in mud huts! To him, we are the enemy.

      Report Post » cessna152  
    • Give Me Newt Or Give Me Death
      Posted on January 6, 2012 at 1:11pm

      Watch out now, gas will only go that high is oil goes up (which it may because of the Iran situation). But I say be careful because the Paul-Bots will come after you.

      Report Post » Give Me Newt Or Give Me Death  
  • IMPEACHBHO
    Posted on January 5, 2012 at 4:34pm

    It’s simple. Drill here, drill now.
    http://www.youtube.com/watch?v=7kqVZUCRth0&t=17m40s

    Report Post » IMPEACHBHO  
1 2 3

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love