Green Tech Runs Out Of Money
Green Tech, or cleantech, is running out of money no matter what the name. The capital available to these firms has shrunk and continues to do so. It is odd because as fossil fuels were to be phased out due to lowering greenhouse gas emissions, green tech should be a tremendous investment. It is not. Adoption, without any question, must be part of the heart of this. Low demand–no money. And, the US has increased its power consumption at the highest rate in 20 years.
According to the FT, in an article titled “More cleantech companies close as fundraising challenges emerge,” the authors write, “Rising interest rates, competition for funding and delayed federal support contribute to issues facing the sector.” Green tech should worry most about the government. The government should care less about risk and provide lower-rate funds than private capital.
Government Role
One risk the government might take, which private capital will not take, is how quickly green tech companies run out of money. What was known as the “burn rate” duing the dotcom area has returned when financiers look at solar and wind companies. In many cases, they do not like what they see.
Another problem that will be around for a while is that fossil fuels remain an economy-efficient way to provide energy. Many fossil fuel companies are well-funded and have often been in business for decades. Put another way, they are safe to play as an energy source. They compete with Greentech because oil and coal prices are low.
https://www.msn.com/en-us/money/companies/green-tech-runs-out-of-money/ar-AA1pVfPO?ocid=msedgdhp&pc=HCTS&cvid=cd1f6a3469a5473cbcb57aaba786a177&ei=78
