As usual, our resident troll has a post on the recent list where he distorts the source material by omitting key portions of the article from his review. If you read that post, you would think that the evil geniuses behind Cape Wind decided all on their own to screw over American workers and award all the jobs to “a German company called EEW”. However, a few minutes spent reading the link tells a very different tale. To wit:
In the United States, which has yet to put a wind farm in the water, the Interior Department is leasing sections of the ocean and the Energy Department has handed out grants and considered loan guarantees, like one that is pending for Cape Wind.
The potential economic impact of a new offshore wind industry is enormous, supporters say. The Energy Department estimates that the Atlantic coast could support as many as 70,000 jobs by 2030.
Cape Wind was to be the catalyst, leading to the first 1,000 jobs, with equipment from General Electric and other domestic suppliers. But a major setback came around 2009, when G.E. decided to back away from the offshore wind business, saying it was still too expensive to compete with land-based wind power. In response, Cape Wind turned to Vestas and Siemens, dominant players based in Northern Europe with factories in the United States that make onshore wind machines. In December, Siemens and Cape Wind completed the contract, in time, executives said, for the project to qualify for a federal tax credit valued at 30 percent of its cost.
So there was a time commitment that had to be met to ensure that Cape Wind would get the tax credit that helps make the project feasible – the contract had to be completed by year end, and Mass Tank didn’t have a factory. The article goes on to explain that building a factory here is hard to justify on the strength of one large contract, and Mass Tank never came through with a financing plan to actually make it happen. Further, while there won’t be as many manufacturing jobs here in the states, there will still be plenty of jobs – these things need to be assembled, plugged into the grid and serviced, all of which will be done by locally sourced, well paid middle class Americans. A little more from the link:
Accounts differ over how the deal fell apart. Cape Wind expected Mass Tank to contribute or find financing before awarding the contract, while Mass Tank needed the contract to raise the roughly $35 million or $40 million that its plant would cost. Under those circumstances, Mr. Mack of EEW said, there was not a profitable way to go forward.
Despite the disappointment, Mr. Horstmann and his team are pursuing other possibilities. There is interest in New Jersey, they say, in their participation in a factory planned for the Fishermen’s project. But their chance to put Mass Tank at the forefront of serving the Atlantic coast offshore industry may have slipped through their fingers.
“We tried to hit a home run with this,” Mr. Horstmann said. “And we didn’t.”
In his post, DFW admits to having “cheated” on us here at BMG by reding RMG, which is where he found his source material – naturally, the good folks at RMG omitted the same things Dan omitted. Christopher left a comment in there asking if people think Dan should continue to cheat on us by hanging out at RMG instead of BMG. Go rec that comment if you agree – and DFTT!