It’s dire. After suffering a 36% fall in June due to unexpectedly bad maintenance bills, Siemens Energy has lost another 37% on Thursday as it revealed orders and revenue would be even lower than the current subdued expectations. The share that sold for 24 euros in May is now selling for 7.

Things are so bad Olaf Scholz, Chancellor of Germany, has even said Siemens Energy is “very important”.  Apparently, talks are “intensive”, which presumably means the company is on death’s door and the German government is being asked to help save it.

And so we arrive at a point where a company selling products that depend on government subsidies is now asking to be subsidized itself. And the whole green industry depended on government-pumped “science” and artificially low-interest rates to exist in the first place. Like a pyramid scheme skiing on two ponzi scams, sooner or later, it has to collapse.

Tyler Durden, ZeroHedge

Siemens Energy Shares Crash 37% As Renewable Bust Sparks ‘Green Panic’

Siemens Energy shares in Germany crashed on Thursday after the company warned its wind turbine business is grappling with quality issues and offshore ramp-up challenges. The company said it’s evaluating various measures to strengthen its balance sheet and is discussing state guarantees with the German government. This comes as a financial crisis in offshore wind energy is brewing.

The word is Siemens is asking for up to 15 billion euros in guarantees.

The whole wind industry is down

Even the Guardian is asking if something is wrong in the whole wind industry, albeit only as a means of paving the way to ask for bigger subsidies.

The windmill business has not recovered from Siemens’ June shock that bigger turbines were not always better, and ominously, something was wrong which would cost an obscene amount to fix. It didn’t bode well that the problem was narrowed down to either the rotor, the bearings “or the design”– which covered pretty much everything. By August, Siemens Energy announced a jaw dropping annual loss of €4.5 billion.

Confidence is gone. In July, the Swedish energy giant Vattenfall stopped work on the offshore wind farm plans off Norfolk.  In August, the Danish wind firm Ørsted lost 25% after it revealed it may have to write off ” the value of its US portfolio by nearly £2bn.”  The share market was so skittish it wiped off nearly £7bn in value that week. Overall, the Ørsted share price has dropped by two-thirds from its peak in early 2021.

The latest headlines on Orsted say it all:

Orsted: Sunrise Wind Project Likely to Be Ditched After Failure to Get Extra Subsidies; Shares Cheap

A week ago, Deutsche Bank  “slashed its 12-month share price forecast for Danish energy giant Ørsted by 36%, citing supplier delays, lower tax credits and rising rates.” — CNBC

Things haven’t exactly been good for Vestas either:

Vestas is also down 30% this year.

Despite massive subsidies, bountiful good intentions, and Draconian regulations on fossil fuel competitors, green energy doesn’t work, and Net Zero is pure fantasy.

This is the rotor of the newest, largest offshore Siemens SG 14MW . Look how big these machines are.

 

It will theoretically end up propped up on a stalk 140 meters high over the ocean waves or something like that. The blades are 115m long. Imagine fixing it.

This article originally appeared at JoNova