Signet Solar pulls out of Rancho Cielo

April 06, 2010

Signet Solar has decided it won’t build its solar technology manufacturing facility in Belen, according to Jim Wood, the vice president of Coast Range Investments, the developer of Rancho Cielo.

During last night’s Belen City Council meeting, Wood made the announcement by saying Signet Solar won’t build anywhere in New Mexico, largely because the federal government denied a loan guarantee for the project.

Signet Solar was denied a loan guarantee from the United States Department of Energy (DOE) on January 11, which the company planned to use to back funding for the first phase of construction for what has termed “the SunKachina project,” a multimillion dollar silicon thin film manufacturing facility.

The DOE denial letter suggests that prior to the denial the federal agency gave Signet Solar an opportunity to clarify information in its loan guarantee application, but the company was unable to allay DOE’s concerns.

On January 27, Wood and a representative of Signet Solar provided letters to Governor Bill Richardson’s office and the City of Belen indicating the DOE denial was undergoing an appeal.

An appeal, however, wasn’t possible, because the DOE application process doesn’t allow appeals.

“DOE’s determination is final and unappealable but will not prejudice you from applying under a future solicitation if appropriate,” the DOE denial letter reads.

Signet Solar has expressed no interest in a second attempt at a loan guarantee, along with Coast Range Investments, having spent approximately $1 million on the DOE application.

Wood said Coast Range Investments is continuing to search for companies that are willing to build manufacturing facilities in Rancho Cielo.

Posted in: Economy Rancho Cielo