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Green Industry in Upheaval – Yet another Energy Storage Company goes Kaput

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Bankrupt Green Energy Companies

These days the only thing you hear about in the Green Industry is Bankruptcy or companies on the verge of insolvency. The problem is not related to the only sector, but afflicts the entire Green Industry with companies across Solar Energy, Wind Power, Energy Storage, Biofuels going out of business. The reasons are common and the results are also the same. In fact most of the stories related to massive job losses and how the companies have lost hundreds and millions of public and private money, led to ultimate failure. While the A123 , the most well known energy storage company is staring at a liquidity drought and desperately trying to survive, another company Valance Technology operating in the same sector has filed for bankruptcy. Valence develops rechargeable batteries based on lithium ion and polymer technology, has suddenly declared bankruptcy unable to weather the severe industry downturn.

Another energy storage company Beacon Power which used an innovative flywheel technology to store electricity had gone bankrupt earlier in the year. In fact the famous green investor, Vinod Khosla had said that he did not expect A123 Technologies to survive. Given the current fundamentals of A123, it does not look like he will be wrong. Centrotherm which was the third largest solar equipment manufacturers has become insolvent as well this week, as massive solar panel glut has made solar equipment makers compete with their own products being sold at 1/10th of the price.


Solar equipment companies are now feeling the heat as almost every company has stopped expanding capacity and there exists a large number of companies willing to sell almost new equipment for pennies to the dollar. Centrotherm which was the second largest seller of solar equipment with revenues of more than $800 million is facing a credit crunch. The company’s bank are refusing to renew credit lines or give it shipment finance. Hyundai had earlier bought solar cell equipment from Centrotherm as far back as 2008. Hyundai Solar Panel & Solar Cell factory, the  largest South Korean manufacturer is a 600 MW unit.


Valence Technology Inc. filed for voluntary Chapter 11 bankruptcy as the battery maker looks to boost liquidity and focus on its core business.

Valence develops rechargeable batteries based on lithium ion and polymer technology licensed from Telcordia Technologies. It also has research and development pacts with Delphi Automotive Systems, which holds the license to sell its batteries outside the U.S.

Valence, which had a market value of $110 million as of Wednesday’s close, has posted losses as it struggles to control costs.



Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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