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Solyndra

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Solyndra Corporation
Company typeStart-up company
IndustryEnergy
Founded2005
FounderChristian Gronet
Defunct2011
FateBankruptcy
Headquarters
Fremont, California
Key people
Brian Harrison, CEO

Bill Stover, CFO
Karen Alter, SVP of Marketing
Corby Whitaker, VP, Sales United States
John Gaffney, Corporate Counsel

Ben Bierman, EVP Operations and Engineering
Revenue2009 = $100 Million
2010 = $140 Million
2011 = pending
OwnerGeorge Kaiser Family Foundation,
U.S. Venture Partners,
CMEA Ventures,
Redpoint Ventures,
Virgin Green Fund,
Madrone Capital Partners,
RockPort Capital Partners,
Argonaut Private Equity,
Masdar and Artis Capital Management.
Number of employees
1100 (approx)
Websitewww.solyndra.com

Solyndra was a manufacturer of cylindrical panels of copper indium gallium selenide (CIGS) thin-film solar cells based in Fremont, California. Although the company was once touted for its unusual technology, plummeting silicon prices led to the company's being unable to compete with more conventional solar panels.[1] On 1 September 2011, the company ceased all business activity, filed for Chapter 11 bankruptcy, and laid off all employees, costing taxpayers over $500 million.[2][3][4] The company is also being sued by employees who were abruptly laid off.[5]

Technology

Solyndra designed, manufactured, and sold solar photovoltaic (PV) systems composed of panels and mounting hardware for large, low-slope commercial rooftops. The panels perform optimally when mounted horizontally and packed closely together, the company claimed, covering significantly more of the typically available roof area and producing more electricity per rooftop on an annual basis than a conventional panel installation.[6]

The solar panels developed by the company were claimed to be unlike any other product ever tried in the industry. The panels were made of racks of cylindrical tubes (also called tubular solar panels), as opposed to traditional flat panels. Solyndra rolled its CIGS thin films into a cylindrical shape and placed 40 of them in each 1-meter-by-2-meter panel. Solyndra designers thought the cylindrical solar panels absorbed energy from any direction (direct, indirect, and reflected light).[7]

Each Solyndra cylinder, one inch in diameter, is made up of two tubes. The company used equipment it had developed to deposit CIGS on the outside of the inner tube, which includes up to 200 CIGS cells. On top of the CIGS material, it added an "optical coupling agent", which concentrates the sunlight that shines through the outer tube. After inserting the inner tube into the outer tube, each cylinder is filled with a silicone oil,[8]then sealed with glass and metal to exclude moisture, which erodes CIGS's performance. The hermetic sealing technology is commonly used in fluorescent lamps.[9]

When combined with a white roof (the fastest growing segment of the commercial roof industry with over 1 billion square feet installed in 2008 and required for any new commercial construction in California), the company claimed that systems that employ the panels on a given rooftop could produce significantly more electricity in a given year. It was thought that on a white roof, the panels can capture up to 20% more light than a black roof.[10] (Note: it is difficult to cite a specific reference for this because the exact gain depends on the latitude of the installation (i.e. sun angle). Solyndra's on-line energy modeling tool allowed designers to specify the roof albedo, and energy output varied as a function of albedo. Twenty percent is cited as typical figure and was validated by careful testing and modeling by the Fraunhofer Institute, among others. However, this report is not available on-line.)

The other advantage claimed by the company was that the panels did not have to move to track the Sun. The panels are always presenting some of their face directly perpendicular to the Sun.[11] The daily production of flat solar panels has an output curve that has a clear peak while Solyndra claimed their system produced more power throughout the day.

The Solyndra panels allow wind to blow through them. According to the company, these factors enable the installation of PV on a broader range of rooftops without anchoring or ballast, which are inherently problematic. Solyndra claimed that wind and snow loads are negligible and that its panels are lighter in weight per area.[7]

The company claimed the cells themselves convert 12 to 14 percent of sunlight into electricity, an efficiency better than competing CIGS thin-film technologies.[9] However, these efficiencies are for the cells laid flat.[12] The company did not post any numbers about performance when the cells are rolled up. The Solyndra 100/200 spec sheet doesn't mention the cells or the panel efficiencies directly. However, calculating from the data provided shows the high-end 210 panel has a field efficiency of about 8.5%.[13]

In 2006, Solyndra began deploying demonstration systems globally. The company stated the total count was 14 systems and that these systems were each instrumented with sensitive radiation, wind speed, temperature, and humidity measurement devices to aid in the development of energy yield forecasting software tools. The company's website claimed there were more than 1,000 Solyndra systems installed around the world, representing 100 megawatts of power.[14]

Management and investors

Solyndra was led by Brian Harrison, a veteran of Intel Corporation. He took the reins on 27 July 2010 when founder Chris Gronet was replaced as CEO.[15]

Major investors included George Kaiser Family Foundation, U.S. Venture Partners, CMEA Ventures, Redpoint Ventures, Virgin Green Fund, Madrone Capital Partners, RockPort Capital Partners, Argonaut Private Equity, Masdar and Artis Capital Management.[16]

In 2009, the company posted $100 million in revenue. It was estimated that its production and sales growth could lead to a market cap between $1.76 - 2 billion.[17] In 2010, revenues were approximately $140 million.[citation needed]

Other company executives were Bill Stover, CFO; Karen Alter, SVP of Marketing; Corby Whitaker, VP, Sales United States; John Gaffney, Corporate Counsel; and Ben Bierman, EVP Operations and Engineering.[18][19][20][21]

Government support and politics

Solyndra received a $536 million U.S. Energy Department loan guarantee before going bankrupt. Under the Solyndra restructuring plan, the government is projected to recoup 19 percent on $142.8 million of the loan and nothing on the remaining $385 million.[2] Additionally, Solyndra received a $25.1 million tax break from California's Alternative Energy and Advanced Transportation Financing Authority.[22]

The majority of Solyndra funding was provided by the American Recovery and Reinvestment Act.[23]

Production

The company manufactured its products in its second fabrication plant, Fab 2, a new $733 million state-of-the-art robotic facility in Fremont, California, which opened in September 2010. Fab 2 was built with the support of a $535 million federal loan guarantee along with at least $198 million from private investors. According to an initial public offering by the company, the combined annual production capacity of the plants was projected to be 610 megawatts by 2013. After expanding production in 2008,[9] the company announced on 3 November 2010 that it was mothballing its older plant, Fab 1, and postponing expansion of recently opened Fab 2, giving it an annual production capacity of about 300 megawatts. Market conditions were cited, with conventional solar modules manufactured in China by low-cost producers such as Suntech and Yingli offering stiff competition.[24]

On 20 March 2009, Solyndra estimated that:[25]

  • The construction of this complex would employ approximately 3,000 people.
  • The operation of the facility would create over 1,000 jobs in the United States.
  • The installation of these panels would create hundreds of additional jobs in the United States.
  • The commercialization of this technology was expected to be then duplicated in multiple other manufacturing facilities.

On 3 November 2010, Solyndra said it would lay off around 40 employees and not renew contracts for about 150 temporary workers as a result of the consolidation.[24]

Shutdown and investigation

Solyndra facility in Fremont with a "For Sale" sign in September 2012

On 31 August 2011, Solyndra announced it was filing for Chapter 11 bankruptcy protection, laying off 1,100 employees, and shutting down all operations and manufacturing.[26] In Solyndra's quarterly employee meetings, employees were told that the company was losing money, and that production costs, while declining, were still higher than the also-declining market prices for solar panels. The decision to lay off employees and cease operations came about as the result of a board meeting on 30 August in which terms for the injection of additional capital could not be agreed upon. This left Solyndra with virtually no cash.

On 8 September 2011, Solyndra was raided by the FBI investigating the company.[27]

In September 2011, federal agents visited the homes of Brian Harrison, the company's CEO, and Chris Gronet, the company's founder, to examine computer files and documents.[28] Also, in September 2011, the US Department of the Treasury launched an investigation.[29]

On 29 September 2011, a US Department of the Treasury official[who?] confirmed that the criminal probe of Solyndra is focused on whether the company and its officers misrepresented the firm’s finances to the government in seeking the loan or engaged in accounting fraud.[30]

On 7 October 2011, newly revealed emails showed that the Obama administration had concerns about the legality of the Department of Energy's loan restructuring plan and warned OMB director Jeffrey D. Zients that the plan should be cleared with the Department of Justice first, which the Department of Energy had not done. The emails also revealed that as early as August 2009, an aide to then-White House Chief of Staff Rahm Emanuel had asked a Department of Energy official if he could discuss any concerns among the investment community about Solyndra but that the official dismissed the idea that Solyndra had financial problems.[31]

On 13 October 2011, the bankruptcy court approved the hiring of the chief restructuring officer Todd Neilson.[32]

On 20 October 2011, Rocket Renewables (rocketrenewables.com) incorporated in Delaware[33] with Gronet as the President and CEO.[34]

On 10 October 2012, the US Department of Justice objected to the bankruptcy plan amidst allegations that "the plan's primary purpose is tax avoidance through the preservation of hundreds of millions of dollars of net operating losses after reorganization".[35][36] Also, the successor company is named 360 Degree Solar Holdings, Inc., which would have control over "approximately US$ 350 million in tax attributes", such as NOL carryovers.[35]

On 22 October 2012, in the case In re Solyndra LLC et al., No. 11-12799 (Bankr. D. Del.), Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware ruled "that the evidence does not support a finding that the principal purpose of the plan was tax avoidance."[4] "Solyndra's owners, Argonaut Ventures I LLC and Madrone Partners LP" will "realize the tax benefits of between $ 875 million and $ 975 million of net operating losses, while more senior creditors, including the Department of Energy, which provided a $ 535 million loan guarantee to Solyndra, will receive nearly nothing."[4]

On 12 July 2013, the Contra Costa Times reported that Gronet was unlikely to face criminal charges in connection with Solyndra.[37]

See also

References

  1. ^ Melissa C. Lott (27 September 2011). "Solyndra — Illuminating Energy Funding Flaws?". Scientific American.
  2. ^ a b Solyndra Lenders Ahead of Government Won't Recover Fully
  3. ^ White, Ronald D. (1 September 2011). "Solar panel firm Solyndra to cease operations". Los Angeles Times.
  4. ^ a b c Elliott, Amy S. (October 2012). "2012 TNT 205-2 SOLYNDRA BANKRUPTCY PLAN CONFIRMED OVER IRS OBJECTIONS. (Section 269 -- Acquisitions to Avoid Tax) (Release Date: OCTOBER 22, 2012) (Doc 2012-21818)". Tax Analysts - Tax Notes Today. 2012 TNT 205-2 (2012 TNT 205-2).
  5. ^ Baker, David R. (7 September 2011). "Solyndra files bankruptcy, employees sue". The San Francisco Chronicle.
  6. ^ "New Shape of Solar". Solyndra Cylindrical Module. Solyndra,LLC. 2008. Retrieved 13 June 2012.
  7. ^ a b David Biello (7 October 2008). "Cylindrical Solar Cells Give a Whole New Meaning to Sunroof". Scientific American. Retrieved 13 June 2012.
  8. ^ "Solyndra Photovoltaic 4 Watt CIGS Cylindrical Solar Tube". {{cite web}}: Missing or empty |url= (help); Unknown parameter |http://www.halted.com/commerce/catalog/product.jsp?product_id= ignored (help)
  9. ^ a b c Wang, Ucilia (7 October 2008). "Solyndra Rolls Out Tube-Shaped Thin Film". Greentech Media. Cite error: The named reference "tube1542" was defined multiple times with different content (see the help page).
  10. ^ "DDC, Cool and Green Roofing Manual.pdf" (PDF). New York City Department of Design and Construction. June 2005. p. 14. Retrieved 13 June 2012.
  11. ^ Green, Hank (10 July 2008). "Tubular Solar Panels Slash Costs, Boost Efficiency". EcoGeek. Retrieved 2 September 2011.
  12. ^ Ucilia Wang (16 July 2009). "Solyndra Works on 1M Sq. Ft. Project in SoCal". Greentech Media.
  13. ^ "Solyndra 200 Spec sheet". Solyndra.com. Solyndra LLC. 2008.
  14. ^ "Technology/Performance, Proven Performance". Solyndra.com. Solyndra LLC. Retrieved 20 April 2012.
  15. ^ "Brian Harrison Joins Solyndra as President and CEO". Solyndra.com. Solyndra LLC. 27 July 2010. Retrieved 14 June 2012.
  16. ^ Todd Woody (6 September 2011). "Solyndra: Pay Some Investors Before Taxpayers In Solar Flame Out". Forbes. Retrieved 14 June 2012.
  17. ^ Katie Fehrenbacher (19 March 2010). "Solyndra's Estimated Market Cap Up to $2B: Report". Earth2Tech. GigaOM. Retrieved 6 April 2010.
  18. ^ "Solyndra hearing ends when execs take the Fifth". San Francisco Chronicle. 23 September 2011. Retrieved 14 June 2012.
  19. ^ "Solyndra, Inc. Hires John Gaffney as Senior Vice President, Corporate Development and General Counsel". Solyndra.com. Solyndra LLC. 2 February 2010. Retrieved 14 June 2012.
  20. ^ "As Solyndra faltered, top executives collected big bonuses". Tampa Bay Times. 3 November 2011. Retrieved 14 June 2012.
  21. ^ "Solyndra Announces Corby C. Whitaker as Vice President of North America Sales". Solyndra.com. Solyndra LLC. 19 July 2010. Retrieved 14 June 2012.
  22. ^ James Nash, Solyndra Case May Cause Scrutiny of Companies Seeking Tax Break Bloomberg Businessweek 7 October 2011
  23. ^ "Obama's Solyndra Problem - Annenberg Public Policy Center". factcheck.org.
  24. ^ a b Woody, Todd (3 November 2010). "Solar-Panel Maker to Close a Factory and Delay Expansion". The New York Times. Retrieved 3 November 2010.
  25. ^ "Solyndra Offered $535 Million Loan Guarantee by the U.S. Department of Energy". News and Information, 2009. Solyndra LLC. 9 March 2009. Retrieved 13 June 2012.
  26. ^ McGrew, Scott. "Solyndra to Declare Bankruptcy". NBC Bay Area. Retrieved 2 September 2011.
  27. ^ Leonnig, Carol D. (8 September 2011). "FBI searches shuttered Solyndra offices, plant in California". Washington Post. Retrieved 8 September 2011.
  28. ^ Feds Visit Homes of Solyndra CEO, Execs, ABC News, 8 September 2011
  29. ^ Solyndra Loan: Now Treasury Dept. Is Launching Investigation, ABC News, 8 September 2011
  30. ^ Chu takes responsibility for a loan deal that put more taxpayer money at risk in Solyndra, Washington Post, 29 September 2011
  31. ^ Solyndra loan deal: Warning about legality came from within Obama administration, Washington Post, 7 October 2011
  32. ^ "Solyndra Gets New Leader in Bankruptcy". The New York Times. 13 October 2011.
  33. ^ "Rocket Renewables Inc". Bizapedia. 20 October 2011. Retrieved 29 May 2013.
  34. ^ "Rocket Renewables plan to make tape" (PDF). 10 May 2012. Retrieved 29 May 2013.
  35. ^ a b 2012 TNT 198-2 SOLYNDRA BANKRUPTCY PLAN SERVES TO AVOID TAX, DOJ INSISTS. (Section 172 -- Net Operating Loss) (Release Date: 11 October 2012) (Doc 2012-21090) AUTHOR: Trivedi, Shamik
  36. ^ 2012 TNT 198-11 BANKRUPTCY TRUSTEE OBJECTS TO CONFIRMATION OF SOLYNDRA BANKRUPTCY PLAN. (In re: Solyndra LLC et al.) (No. 11-12799) (United States Bankruptcy Court for the District of Delaware) (Section 382 -- NOL Carryovers) (Release Date: 10 October 2012) (Doc 2012-21130)
  37. ^ Dan Levin Reuters (12 July 2013). "Solyndra founder unlikely to face criminal charges, sources say". Contra Costa Times. Retrieved 6 November 2013. {{cite web}}: |author= has generic name (help)
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