MORE NEWS, 4-10 (SOLAR CITY; NEVADA WORKING ON NEW ENERGY INCENTIVES; ETHANOL BANKRUPTCY)

SOLAR CITY
FPL plans massive solar plant
Zac Anderson, April 9, 2009 (Sarasota Herald Tribune)

"Florida Power & Light announced plans… to build one of the world’s largest photovoltaic solar power plants on land owned by the struggling Babcock Ranch real estate venture.

"The development is another sign of the pressure Gov. Charlie Crist is putting on Florida’s big electric companies to increase their clean energy portfolios…[and] trying to pass legislation this year that would require electric companies to produce 20 percent of their energy from renewable sources by 2020…"

Artist's rendering of the Solar City. (from Kitson, click to enlarge)

"Some renewable energy advocates questioned the timing [of the announcement]… saying FPL is trying to gain favor for renewable energy legislation that is more costly to consumers and favors large energy companies and large solar plants over small-scale solar production on homes and businesses…FPL’s vice president and chief development officer, Eric Silagy, dismissed the argument…

"Regardless of the politics involved, the announcement was a major coup for developer Syd Kitson’s massive Babcock Ranch deal, which has laid off employees and seen it’s debt rating drop in recent month as the market for new homes dried up…Half the [financing] came from Morgan Stanley, which is struggling…"

Artist's rendering of the Solar City. (from Kitson, click to enlarge)

"Kitson is now marketing the Babcock project as the world’s first community that will derive all its energy from the sun, and in the process he secured ringing endorsements from the nation’s top environmental groups…[although] Kitson may be basking in the glow of something FPL would have done regardless of Babcock because of pressure from Crist…

"Silagy said FPL is committed to the 75-megawatt project on 400 acres of Babcock land east of Fort Myers and Punta Gorda, even if homes are never built there. The energy would just be fed into the larger grid…Development on the $300 million solar plant should begin by the end of 2009…[Kitson] plans to begin building homes at Babcock by 2011…"


NEVADA WORKING ON NEW ENERGY INCENTIVES
Solar energy debated
Rachelle Gines, April 8, 2009 (AP via San Jose Mercury News)

"…[T]he solar energy industry will have a major impact on Nevada's economy, assuming that tax abatements are offered to attract such companies to the state…Industry-sponsored studies show that current tax abatement polices set to expire in June should be continued and enhanced, which would make Nevada "by a small margin" more competitive in Arizona and California in attracting solar energy developers…

"…SB331 would cut property taxes imposed on solar energy generating facilities by 75 percent for 25 years, and would abate local school support taxes imposed on property used in construction or operation of such facilities by 75 percent for 10 years. Other taxes for education wouldn't be cut…"

If you had this much sun, you'd be passing incentives, too. (click to enlarge)

"Assemblyman Marcus Conklin, D-Las Vegas, questioned the number of long-term jobs that the solar energy industry would create and called the tax revenue lost under the bill "substantial…"

"…[Studies show] the potential economic gain from solar energy activity offsets the cost of basic government services needed because of the initial influx of power plant construction workers."

New Energy and Energy Efficiency provide more jobs than Old Energy. (click to enlarge)

"Another industry study showed that solar energy development over the next seven years could create close to 6,000 construction jobs per year, 1,200 full-time plant operation jobs and close to $11 billion in the generation of goods and services…[and] $500 million in sales and property taxes would be paid to the state over the life of solar energy projects if tax abatements are approved…SB152 would use federal stimulus money to create renewable energy jobs

"…AB522 would tax solar, wind and other clean energy produced in the state. It would extend upfront tax breaks for building renewable energy plants in Nevada, and new revenue would fund a renewable energy commission, energy-efficiency rebates and a program to help Nevada customers with power bills…Critics of the proposal have asked why lawmakers would tax the clean energy they are trying to promote instead of the pollution-creating energy they want to replace."


ETHANOL BANKRUPTCY
Ethanol Producer Aventine Files for Chapter 11
April 8, 2009 (AP via Wall Street Journal)

"Ethanol producer Aventine Renewable Energy Holdings Inc. filed for Chapter 11 bankruptcy protection…the latest victim in an industry stung by volatile commodity prices and shrinking profit margins…Aventine listed assets of $799 million with $491 million in debt. The company listed 30 creditors.

"Chief Executive Ron Miller said Aventine is challenged by a difficult market environment, and the filing will allow it to operate without interruption…"

click to enlarge

"Aventine last month said it did not expect to have enough cash to satisfy a $15 million interest payment due April 1 on an outstanding senior unsecured 10% fixed-rate note or to pay $24.4 million due to its engineering and construction contractor, Kiewit Energy Co…In its most recent earnings statement, Aventine reported a fourth-quarter 2008 loss of $36.9 million, or 86 cents per share, compared with a profit of $3.3 million, or 8 cents per share, during the year-earlier period.

"The New York Stock Exchange suspended trading of Aventine shares on March 30, moving the stock to its 'pink sheets.'"

click to enlarge

"Sioux Falls-based VeraSun Energy Corp., the nation's No. 2 ethanol producer, filed for Chapter 11 bankruptcy protection Oct. 31 after tightening credit markets erased its lifeline to weather the swings in corn and fuel prices…Valero Energy Corp., the nation's largest independent oil refiner, bought five VeraSun plants and is in the process of closing on two more for a total $477 million…Another biorefiner, Pacific Ethanol Inc., warned…late last month that bankruptcy protection was a possibility and it may not be able to continue past April 30…

"The nation's renewable fuel standard ensures demand for ethanol by calling for 11.1 billion gallons of renewable fuel to be blended into gasoline this year, with that number climbing to 36 billion gallons by 2022."