Earlier this year, I obtained the DOE loan guarantee term sheet for Solyndra Fab 2 LLC via a Freedom of Information Act (FOIA) request.
Although the document is highly redacted, in the interest of getting it out there, I am including the first few pages here, followed by a link if you'd like to download the document in its entirety.
To be honest, any juicy bits have been blacked out. Here are the first five pages:
Before we get to that --
This is speculation, but It would appear that what the FBI are looking for is some evidence that Solyndra's CEO had knowledge of the firm's economic jeopardy, even when he failed to mention this in his letters to Congress. Certainly, Harrison looked me in the eye about six months ago and told me that they would need no additional venture funding to stay afloat.
Anyway, here is the loan guarantee term sheet.
Here's a link to the document if you'd like to download it.
CEO Brian Harrison has been invited to testify at a congressional hearing next week to explore the circumstances around the solar firm's $535 million loan guarantee.
Lindsay Riddell of The San Francisco Business Times has been covering the Solyndra tragedy in painful detail and she reported the following.
Henry Waxman and Diana DeGette, both ranking members of the House Committee on Energy and Commerce, said in a letter to Cliff Stearns, chairman of the Subcommittee on Oversight and Investigations that Harrison:
"Met with us and other committee members to assure us that Solyndra was in a strong financial position and in no danger of failing. At that time, he said the company was projected to double its revenues in 2011, there was 'strong demand in the United States' for its shipments, and the company was expected to double the megawatts of panel production shipped this year. These assurances appear to contrast starkly with his company's decision to file for bankruptcy last week."
"He did not convey to us the perilous condition of the company and the Committee should know why," the letter said.
Here's a copy of the letter from Waxman to Stearns:
(proceed to the next page)
We covered the Solyndra hearings in July when the OMB was subpoenaed by Chairman Fred Upton of the House Energy and Commerce Oversight Subcommittee to provide the paperwork used in the $535 million DOE loan guarantee decision.
At that time, the CEO of Solyndra, Brian Harrison, wrote the following letter to the Rep. Clifford Stearns, the Chairman of the Subcommittee on Oversight and Investigations.
Ahead of the meeting, Solyndra released a statement. Here are some excerpts:
Statement from Solyndra, Inc. President and CEO President Brian Harrison in advance of the House Energy and Commerce Oversight Subcommittee’s July 14th business meeting:
“In advance of the Subcommittee’s meeting, Solyndra’s 1,166 American employees want to ensure that everyone has the most accurate and up-to-date information regarding our performance in the market, something that has been widely misrepresented thanks to a reliance on outdated information.
“The fact is that Solyndra is growing rapidly. We are installing our products around the globe, we have created and supported thousands of American jobs, and we are on track to nearly double our revenue this year. Solyndra just completed a record quarter for shipments, with strong demand in the United States and major exports as well. Last year, we shipped 65 megawatts of panel production and expect that to double again this year.
“We have seen a total net direct employment increase at Solyndra of 310 regular, full-time jobs since the DOE made its conditional loan guarantee commitment. That loan guarantee allowed Solyndra to build our new factory, Fab 2, which created 3,000 construction jobs in the midst of one of the deepest construction downturns in California history. One hundred percent of our production is based here in the U.S., and Solyndra’s operations have led directly to 300 new supply chain jobs across 18 states.
“Solyndra is one of the few U.S. companies using American innovation, ingenuity and manufacturing workers to compete in the global solar market -- exporting more than 50 percent of our products into a field dominated by Chinese and other companies, which enjoy less restrictive business environments and significant government subsidies and incentives to support all aspects of their business.
Additional facts on Solyndra’s business operations and the global solar market:
Solyndra’s cash production cost per watt is dropping rapidly at pace with the industry. In a highly competitive global marketplace, with heavily subsidized foreign competition, Solyndra continues to win large projects on commercial rooftops around the world.
Evidence of Strong Momentum
· 1,166 employees and growing; 49 open jobs on website
· Exporting more than 50% of product -- 14th largest shipper from the Port of Oakland, more than 1,000 containers this year and over 1,000 installations in more than 20 countries
· Our second quarter was our biggest ever in terms of megawatt volume
· Over 100MW shipped, more than 700,000 panels
· Revenues grew from $6 million in 2008 to $100 million in 2009 to $140 million in 2010. For this year, ending in January, revenues are projected to nearly double again. In 2011, shipments expected to double over 2010
· Factory output is on target to reach 300 MW
· Solyndra’s U.S. market growth is ahead of plan with a healthy pipeline
· We have projects underway or installed with 3 of the U.S. top 10 retailers and discussions in progress with several more, and are seeing repeat business from major customers
· Doubled U.S. sales and marketing team in past 6 months
· Building our new state-of-the-art factory, Fab 2, employed 3,000 construction workers in the worst construction downturn in California history.
· The Fab supports jobs at Solyndra and in 18 states around the U.S. Approximately 70% of suppliers are in the U.S. and Solyndra’s business has created 300 jobs in 9 supplier firms alone.
· Factory output is ramping rapidly. Solyndra shipped more than 70,000 panels in the first quarter, and will ultimately triple that output.
· Today Fab 2 is producing nearly 10,000 panels a week or approximately 2 megawatts (enough to power the equivalent of more than 500 homes). By the end of September we will be producing 3MW a week.
· In Q3 we will install the last of the planned equipment in the factory and build-out will be complete, 24 months from the start of construction and ahead of schedule.