Wednesday, October 30, 2013

Does E-Waste Have Sulfur?

In May of 2012, I wrote an article under my Green Machine non de plume for the Tiburon California Ark Newspaper about the boondoggle Bloom Energy is perpetrating in Delaware.    The article won the Ark and me a first prize for a serious column from the National Newspapers Association.   The data for that article came from a permit application Bloom made on November 11, 2011 to the Coastal Zone Commission in the First State.

Today I revisited that permit application as I had a vague recollection that Bloom claimed to generate 10,000 pounds a year of E-Waste at the generation station.   They also claimed to generate 1,000 pounds a year of paper waste and 500 pounds of plastic waste but claimed under penalty of perjury they had no hazardous waste.

E-waste is defined in the application as electronic waste and I looked up what electronic waste is.  It is old monitors, cell phones, PCs, circuit boards, TVs, radios, etc.   10,000 pounds a year will equal Bloom disposing of 10 laptop computers a day.  No way Jose that a solid oxide fuel cell installation creates the electronic waste equal to the disposal of 10 laptops a day

The world in total generates approximately 40 million tons a year of E-waste.  This is about 11 pounds per year per person.  On this basis Delaware will generate about 10 million pounds a year of E-waste.  Can it be possible that Bloom will generate 0.1% of all the E-waste in Delaware????  Hell No!!

I then did a calculation based on the sulfur content in Pacific Gas and Electric’s pipeline gas.  I deducted the quantity of sulfur Bloom claims to emit in the stack of the fuel cell and found that 97% of the sulfur had to go somewhere else other than the stack.   Remembering Bloom applied for State of California money to train their operators in the handling of hazardous hydrogen sulfide (H2S) I knew that Bloom has a resin bed to catch the sulfur in the pipeline gas before the natural gas enters their fuel cell stack.  This resin becomes laden with H2S and other sulfur containing chemicals in the gas.  The resin and attached sulfur compounds are considered hazardous waste and require proper handling.

I then performed the calculation of how much resin a year will be present if 5% is sulfur (the probable loading of sulfur on the resin) viola for 47 megawatts (The Delaware project scale) and 80% capacity factor approximately 5 tons a year (10,000) pounds of waste resin will be generated. I am pretty darn sure that Bloom hid the hazardous resin waste under the E-waste category in the permit application.  By email I contacted an engineer at the Delaware department of natural resources to ask if Bloom had provided any further breakdown of the “E-waste”.  I hope to hear back.

You see the Bloom project in Delaware is in the coastal zone where hazardous materials are forbidden.  Maybe they think the E in E-waste is Environmental waste but the permit application clearly defined E-waste as Electronic Waste.    If we find out that the 10,000 pounds of solid waste is actually sulfur laden resin, I could win a Pulitzer Prize.  

It should be noted that PG&E in California has a specification on total sulfur in their gas of 1 grain per 100 cubic feet.  The three suppliers of pipeline gas to Delaware have respective specifications of 2, 5, and 20 grains of total sulfur per 100 cubic feet.   Therefore it is highly likely that pipeline natural gas in Delaware has more sulfur than here in Northern California and the amount of hazardous sulfur laden solid waste from the Bloom Coffins in Delaware is greater.  Note 1 gram equals 15.432 grains. 

I would not put anything past Al Jazeera Gore and his partners to find ways of obtaining a permit for a toxic system in a preserved area.   Al may have to claim he invented E-waste.  President Obama will instruct the NSA to use their Utah Data Center to intercept all E-waste.   Honestly this E-waste misrepresentation in the permit application could wind up as the single point that allows Delaware to abrogate the one sided crony contract that overcharges its citizen by a factor of 3 to 4 on the power Bloom is generating.  I will report on the composition of the 5 tons of E-waste as soon as I have definitive data.

When you listen to Al Gore pontificating about greenhouse gasses you have to take him with a grain of salt.  Actually he is so obnoxious you have to take him with a grain of sulfur.

Sunday, October 27, 2013

It Depends How You Look At It

I was thinking why do some believe the Bloom Coffin is green and I know it is not?  Then I realized most do not really look at things from all angles.  They simply believe the angle that they are told.  Look at the two images below and you will see why I knew the Bloom Coffin was a fake from the start while most thought it was a great idea.  The top image is how most see Bloom Energy.  The bottom image is when I looked at it from the right angle so to speak.

Saturday, October 26, 2013

Bloom Energy's Lies Fully Exposed By Delaware Data

Under the freedom of information act I have been given data from the Delaware Public Service Commission of the performance (lack of performance actually) of the Bloom Energy Coffins in the First State.   I had provided readers with the data on the exorbitant cost of the electricity from the Coffins as exceeding an $18 million subsidy for the year 2013.  Now here is the performance data from the Delaware PSC information.

Overall Capacity Factor for the first 8 months of 2013 (generated mwh versus nameplate mwh) is 80.68%.  The expected capacity factor under the agreement was 96.6%.  These Coffins are brand new and are already out of action for almost 20% of the time!!!!!

Overall carbon emissions are 880.9 pounds CO2 per megawatt hour.  The permit application claimed the carbon emissions would be 773 pounds of CO2 per mwh when the Coffins were new and 884 pounds CO2 per mwh lifetime average.  Well the Coffins are almost brand new and already are emitting their lifetime average!!!!!

Al Gore and his team at Bloom can lie to us via AT&T, Walmart, Target, Verizon and other companies but the Delaware data tells the truth.  My absent and gangrene Congressman Jared Huffman has still not attended the meeting I requested with him.  He still thinks Al Gore walks on green water and I am not the Green Machine.  Huffman thinks I am a global warming denier and hate technology.  Nothing could be further from the truth about the Green Machine.  We know he was bought by AT&T while he was in Sacramento and AT&T extracted $40 million of value out of the Bloom SGIP money from the CPUC.  Sadly Mr. Huffman received The Friends Of The River Award.

Here is his FaceBook post of yesterday

Jared Huffman shared a link.
“Very honored to be receiving the Peter B. Behr award tonight at Friends of the River's California River Awards gala!

Here is my reply to the gangrene Congressman
“Mr. Huffman I see on your fan club page you are getting a friends of the river award. I guess Bloom Boxes pollute the air and create solid toxic waste so a friends of the river award may be in order as the gangrene boxes do not pollute in the liquid phase. I will give you the "you sold me down the river" award”.  Of course I have to meet the Gangrene Congressman face to face to present the award.  

Monday, October 21, 2013

Khosla Applies Life Support To KIOR

Vinod Khosla and his Adviser Condi Rice have given out a lifeline to their still born child KIOR.   KIOR had exhausted all of its cash and was either headed to read Chapter 11 or needed Khosla to prop up the corpse on Halloween in the hope other investors will join in and fund the company.   By my reckoning the  $50 million injection of new funds into the company will give it another 4 months of life and Khosla and Rice must have some other interested parties who will invest when the time is right but that it not today.

Khosla took a bit of a bath on swapping old debt he held for new debt and gave KIOR cash.  He also swapped some old debt for shares and gave some cash.  He is trying to clean up the balance sheet to attract new investors.   It is interesting that the Province of Alberta that also holds debt and equity in the company did not follow Khosla and do a similar transaction.  My guess is they have certain accounting requirements and did not want to recognize losses right now. 

Here is SEC 8K form that was filed today

Form 8-K for KIOR INC

Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or

Item 1.01. Entry Into Material Definitive Agreement.
Note Purchase Agreement
On October 18, 2013, KiOR, Inc. ("KiOR") and its wholly-owned subsidiary Kior Columbus, LLC, ("KiOR Columbus," together, with KiOR, the "Company") entered into a Senior Secured Convertible Promissory Note Purchase Agreement (the "Note Purchase Agreement") with Khosla Ventures III, LP ("KV III"), KFT Trust, Vinod Khosla, Trustee, ("KFT Trust") and VNK Management, LLC ("VNK") and, collectively with KFT Trust and KV III, the "Purchasers") and KV III in its capacity as agent for the Purchasers. The Note Purchase Agreement was amended on October 20, 2013 and the Note Purchase Agreement, as amended, is described below.
The Note Purchase Agreement contemplates two tranches of financing. The first tranche consists of the issuance of $42.5 million of Senior Secured Mandatorily Convertible Notes due 2020 (the "Notes") in exchange for a like amount of cash and approximately $53.2 million of Notes in exchange for a like amount of existing indebtedness outstanding under the Company's existing Loan and Security Agreement (the "Loan and Security Agreement") by and among the Company and the Lenders named therein, dated as of January 26, 2012, as amended on March 17, 2013. The second tranche consists of the sale of up to $7.5 million of shares of the Company's Class A Common Stock (the "Shares," which also includes shares issuable as a part of a Purchaser's option or the Company's call option, as described below) and the sale of Shares in exchange for a like amount of existing indebtedness equal to $25 million in principal amount, plus accrued interest and applicable fees outstanding under the Loan and Security Agreement prior to March 17, 2013.
In the first tranche, which we expect will close on October 21, 2013, KV III and VNK will purchase Notes in an aggregate amount of $42.5 million, resulting in gross proceeds to the Company of $42.5 million, and KFT Trust will purchase Notes in an aggregate amount of approximately $53.2 million pursuant to the conversion of outstanding indebtedness owed to KFT Trust for loans received from KFT Trust from and after March 17, 2013 under the Company's Loan and Security Agreement.
The Notes accrue interest at a rate of 0% per annum and are convertible into shares of Class A Common Stock at a conversion price of $2.897 per share (such price, as it may be adjusted from time to time as set forth below, the "Conversion Price"), which represents a 25% premium over the average daily volume weighted average price of our Class A Common Stock for the twenty
(20) trading days ending on October 17, 2013. The Conversion Price may be decreased in the event of certain subsequent equity issuances (each, a "Dilutive Issuance") by the Company below the Conversion Price of the Notes between the date of the first tranche closing and the earlier of (i) the one year anniversary of the first tranche closing and (ii) the conversion of the Notes. In the event of a Dilutive Issuance, the Conversion Price of the Notes will be reduced, concurrently with such issuance, to a price (calculated to the nearest one-hundredth of a cent) equal to the product of (x) the Conversion Price then in effect and (y) the quotient of (A) the price per share of the additional shares of common stock so issued and (B) the Conversion Price then in effect. The Conversion Price will also be adjusted in the event of stock splits and combinations, certain dividends and distributions and mergers or reorganizations. In addition, if on or before the one year anniversary of the first tranche closing, the Company consummates a Financing Event (as defined below), the Notes will automatically convert on the earliest of the following events: (i) if the average closing price of the Class A Common Stock exceeds 150% of the Conversion Price in any thirty (30) day period or (ii) if the one year anniversary of the closing of the first tranche occurs. If the Company consummates a Financing Event after the one year anniversary of the first tranche closing, the Notes will automatically convert simultaneous with the closing of the Financing Event. Upon the occurrence of any of the foregoing events, the principal amount of the Notes (which, for clarification, will include any interest previously paid in kind) and all accrued but unpaid interest thereunder (including any interest paid in kind) will automatically be converted into shares of the Company's Class A Common Stock at the then effective Conversion Price. The Notes are secured by liens on fixtures and personal property of the Company specified in the Note Purchase Agreement.
The second tranche will occur subsequent to the receipt by the Company of aggregate net cash proceeds of at least $400 million from one or more offerings, private placements or other financing transactions comprised of the issuance of Notes and Shares under the Note Purchase Agreement, a pre-approved high yield debt financing and/or the sale of Class A Common Stock (the "Project Financing Amount"). The closing of the second tranche is subject to standard conditions, including notification pursuant to the Hart-Scott-Rodino Act that any applicable waiting period has expired, receipt of any necessary approvals by governmental authorities and the approval, if required by applicable law, of the holders of a majority of the voting power of the Company's Class A and Class B Common Stock voting together as a single class at a stockholder meeting of the issuance and sale by the Company to the Purchasers of the shares of Class A Common Stock . . .

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant.
The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

Item 3.02. Unregistered Sale of Equity Securities.
The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 3.02. The Company issued the Notes and the Gates Shares in reliance on the exemption from registration provided for under Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act"). The Company relied on the exemption from registration provided for under
Section 4(2) of the Securities Act based in part on the representations made by the Purchasers and by Gates, including the representations with respect to the Purchaser's and Gates', as applicable, status as an accredited investor, as such term is defined in Rule 501(a) of the Securities Act, and the investment intent of the Purchasers and Gates with respect to (i) the Notes and the underlying shares of Class A common stock and (ii) the Gates Shares, respectively.

Item 8.01 Other Events.
On October 21, 2013, the Company issued a press release relating to the Note Purchase Agreement and Stock Purchase Agreement. A copy of this press release is attached hereto as Exhibit 99.6 and incorporated by reference herein.
The press release contains statements intended as "forward-looking statements," all of which are subject to the cautionary statement about forward-looking statements set forth therein.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
  No.                                    Description

99.1        Note Purchase Agreement, dated as of October 18, 2013, by and among
            KiOR, KiOR Columbus, Khosla Ventures III, LP ("KV III"), KFT Trust,
            Vinod Khosla, Trustee, ("KFT Trust") and VNK Management, LLC ("VNK")

99.1B       Amendment No. 1 to Note Purchase Agreement, dated October 20, 2013

99.2        Form of Note under the Note Purchase Agreement

99.3        Form of Registration Rights Agreement by and among KiOR, KiOR
            Columbus, KV III, KFT Trust and VNK

99.4        Stock Purchase Agreement, dated as of October 18, 2013, by and among
            KiOR and Gates Ventures, LLC ("Gates")

99.5        Form of Registration Rights Agreement by and among KiOR and Gates

99.6        Press Release, dated October 21, 2013

99.7        Agreement to Subordinate, dated October 20, 2013, and related Form of
            Subordination Agreement

Friday, October 18, 2013

USDA Back In Action

After the short shut down of the government the USDA is back in “business” and their web site is functioning once more.   I found the link on the sugar giveaway to bioethanol fuel producers.

In summary 272,051,214 pounds of crystalline beet sugar was sold to three ethanol producers for $12,607,542.49.  The USDA bought the sugar for $65,902,542.49 and therefore we the people lost $53,294,794.48 on the deal.    A third grader learning arithmetic could tell you they bought the sugar for 24.22 cents a pound, sold the sugar for 4.63 cents a pound, and lost 19.59 cents a pound in their grocery store selling the sugar.

The green machine plugged this data into his CO2 taxation model and it shows that the imputed carbon tax of this sweetheart transaction is $933.91 per ton of avoided CO2.  We avoided 57,066 tons of CO2 emissions.  This is kind of buying 57,066 stubby screwdrivers for $933.91 each.  The DOD bought one $600 hammer twenty years ago and got chastised by Al Gore in his “$600 hammer awards”.  Now the USDA buys 57,066 screwdrivers for $933.91 each and Al Gore says this is saving the planet.

Secretary of Agriculture Vilsack will say he took 10,000 cars off the road for the year in doing the deal and his gift of $5,329 per car is less than the $40,000 a truck gift that Dr. Moniz made to Via Trucks.  Mr. Obama will thank his two secretaries at his next cabinet meeting for being so green.  Here is what Mr. Vilsack could have done instead of this crazy deal.   He could have mailed a 2 pound bag of sugar to each household in the USA using the USPS and attached a note to all Americans saying how much he cares about us.   We all could have saved a trip to local store to buy sugar and each saved a pint of gasoline.  This would have equaled 12,500,000 gallons of saved gasoline or 125,000 tons of avoided CO2 about twice the mass of CO2 as the ethanol will avoid.   We all would have been happy and Obama would have been remembered as the president who put the sugar in your coffee and bowl of cereal and saved twice as much CO2.

A two pound bag of sugar at my local Safeway costs about a buck.  Vilsack could have given us a buck of value for each 24.22 cents of our money he spent and Obama would have done something forward instead of backward for the people.  Instead Vilsack sold our sugar for 4.63 cents a pound and now has 57,066 stubby screwdrivers in his toolbox that are pretty useless.  Al Gore is now selling $993 screwdrivers and has over $100 million in his bank account.  Welcome to America and have a nice day.