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Giving Ormet More Power

June 15, 2013

Unless it is permitted to undertake a bold, brilliantly conceived self-rescue, the Ormet Corp. may well succumb to a slow meltdown. That is simply unacceptable....

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Ragnar

Jun-16-13 12:59 PM

The company that "bought" Ormet did not actually put up any money. They are using some debt financing/tax scheme. Now they want a $450 million natural gas plant? Who will pay for that? The private equity firm doesn't have the cash or the credit to do this.

How will they get the natural gas? Will they outbid those who are buying it overseas or will they have the government demand that it be sold to them at lower prices?

Maybe they WILL pay market price, in which case they will expect all other natural gas users to subsidize their costs.

Ormet should have died years ago. Like Weirton and Wheeling-Pitt, subsidies kept it around for much longer than the market would have.

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atoddh

Jun-16-13 11:43 PM

Yet another super idea from Mr. "Wizard" Tanchuk. Rag: The new gas power plants are cheap to build. The turbines are much like jet engines. The steam is made from the exhaust for steam turbines. Very efficient. An internal power source may offset the higher labor costs at Ormet. Perhaps they can sell some power also.

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