Posted on 11/10/2014 8:11:07 AM PST by thackney
Kior, Inc., the Houston-area biofuels maker that hoped to tap new technology to produce clean energy, filed for bankruptcy Sunday.
The company listed $58.3 million in assets along with $261.3 million debts in its filing in the federal bankruptcy court in Delaware, where the company is incorporated.
The company was at one-time considered a leader in the development of what’s known as cellulosic fuel — gasoline and diesel that is made from inedible plant material like woodchips and grass clippings.
Though other biofuels are made from plants — ethanol, for example, is made from corn or sugarcane — cellulosic fuels are significant because they don’t come from plants parts that could otherwise provide nutrition to humans.
The company was backed by Vinod Kholsa, the venture capitalist and former CEO of Sun Microsystems, and it former Secretary of State Condoleezza Rice is a former board member.
In the past, the U.S. Congress has passed legislation that extends tax credits for, among other things, the production of certain renewable fuel products as contemplated by our current process design. The cellulosic biofuel tax credit expired January 1, 2014, but a bill, H.R. 3758, is currently pending that would reinstate the tax credit through January 1, 2015. However, we cannot assure you that this bill will be passed or that any other favorable legislation will remain in place. Any reduction in or phasing out or elimination of existing tax credits, subsidies and other incentives in the United States and foreign markets for renewable fuels, or any inability of us or our prospective customers to access such credits, subsidies and other incentives, may adversely affect demand for, and increase the overall cost of our cellulosic gasoline and diesel, which would adversely affect our business. In addition, market uncertainty regarding future policies may also affect our ability to develop new renewable products and to sell products to our potential customers. Any inability to address these requirements and any regulatory or policy changes could have a material adverse effect on our business, financial condition and results of operations.
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State Gave $69 Million Loan to Green Energy Company on Verge of Bankruptcy
http://dailysignal.com/2014/08/18/state-gave-69-million-loan-green-energy-company-verge-bankruptcy/
One of its biggest creditors is the state of Mississippi.
The company owes the state $69.275 million on a no-interest loan to build a first-of-its kind plant to convert wood pulp into gasoline, fuel oil and diesel fuel in Columbus, Miss.
Government, get the hell out of business.
You have no business to be involved in the business if you make the rules and do the policing.
No right to use people’s money to blow on cronyism and vote buying!!!!
Dealt with this technology years ago. Never made the mass or energy balance make sense. There was some hope of enzymes helping, but it still had a huge amount of waste products that needed to be dealt with.
Not surprised they failed. Surprised it took this long.
I sure hope it didn’t.
Thanks for the link.
$56 million in revs and nearly 5 times that amount in debt?
The creditors pretty much have it coming.
Another Gorebull Warming/EPA scam goes belly up.
Wow, who coulda seen that one coming?
Sounds like someone didn’t vote or donate the right way.
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