State-subsidized Bloom Energy reports more losses (Karl Baker)
Update on the IPO, evidently some extra shares were sold because the proceeds were $284M vs. $270M. Also, “Bloom Energy is still losing money [$38M in the 2nd quarter], even if it doesn’t like to admit it.” Just two weeks ago, Bloom executives made statements that the company was “cash flow positive,” and anticipated profits in the 2nd quarter – only to file a document with the SEC days later backing away from the claims.”
Also worked into this story is that the QFCP tariff has cost Delmarva Power ratepayers $296M to date. And “defenders of the surcharge deal” reportedly “say it was necessary to achieve the state’s goal of having 25 percent of its energy come from renewable sources by 2025.”
There was a time when the News Journal gave the Bloom Energy venture in Delaware favorable coverage, but apparently those days are over. Back in 2011, the real case for the QFCP tariff had nothing to do with the 25% “renewable energy” target; it was the illusory lure of “green jobs.” Where will manufacturing jobs come from? News Journal editorial, 10/25/11.
Bloom Energy & Fisker ventures “hold a lot of promise,” but also “involve a lot of risk.” Both could “succeed wildly” or “fail miserably.” The only sure thing is “to do nothing and watch the middle class disappear.” The loudest criticism of these ventures is claims of “crony capitalism,” just look at that phony ABC News story about Fisker building cars in Finland with the proceeds of a US loan. Let the market support startups? Well, “the market has mostly been helping US startups move overseas where labor is cheaper. “We are witnessing a vast structural change as products invented here are built overseas, leaving Americans to find service or government jobs. The Bloom and Fisker projects could have a different result, and “to our mind, that’s worth the gamble.”