Greenwire: The U.S. Department of Energy has rejected a $321 million loan application by San Diego-based V-Vehicle Co., which had already taken millions of dollars in state incentives to build a plant in Louisiana.
The agency sent a letter questioning whether the company would be financially viable, V-Vehicle spokesman Joseph Fisher said. V-Vehicle intends to return the $6.2 million it had previously received from Louisiana and will now examine whether to raise more investment capital.
Gov. Bobby Jindal (R) had touted V-Vehicle’s proposed plant in Monroe as one of the state’s largest economic development opportunities, but DOE’s review of the loan application for the plant caused the company to miss a March 1 deadline for another $80 million in state incentives.
“This is certainly disappointing and surprising news,” Jindal said.
The company has remained tight-lipped about its technology, claiming the fuel economy of its cars would “dramatically exceed any electric vehicles or any hybrid vehicles.”
“We were extremely surprised and disappointed by this decision,” said Frank Varasano, the company’s CEO. “Our year-long discussions with the Department of Energy had left us confident and optimistic that the loan applications would be approved” (Robert Travis Scott, New Orleans Times-Picayune, March 24). – GN