McGEEHAN

WHEELING — Delegate Patrick McGeehan has concerns about the financial ties Form Energy has with foreign interests, and he is asking the company to provide him with a list of its investors and their backgrounds.

Form Energy develops energy storage systems, and wants to build them in Hancock County.

In late December, the company announced it would partner with the state of West Virginia to construct its first iron-air battery manufacturing facility — which is expected to create a minimum of 750 new full-time jobs in the religion and represent a total investment of up to $760 million.

The West Virginia Economic Development Authority already has voted to allocate $75 million toward the purchase of land and the construction of buildings on 55 acres of property along the Ohio River in Weirton.

To close the deal, Form Energy also asked for another $215 million in tax subsidies that the State Legislature must approve, according to McGeehan.

“I have a lot of concerns — and not just because of the (potential) investment,” McGeehan said. “This seems to be coming from some rather troubling characters.”

To begin, Form Energy is “a startup company that only exists on paper,” he said.

“They have a website, that’s all,” McGeehan continued. “Typically, state government doesn’t get involved in startups because of the risk.

“Then there are the company’s backers. These are everyone from a Saudi-owned oil company to private groups with ties to China. Together, they have the opportunity to undermine American energy independence.”

McGeehan, a former Air Force intelligence officer, has done his own research and reports who he has found as investing in the company:

– Saudi Aramco (officially the Saudi Arabian Oil Company) is a state-owned enterprise of the Saudi Arabia’s regime, McGeehan states in a letter to Form Energy.

“The Kingdom of Saudi Arabia has historically been a source of funds for groups such as the Taliban, Al Qaeda, and the Al-Nusta Front,” he states. “Not only that, but Saudi Arabia’s state-owned oil company has a strong incentive to oppose and undermine cheap, reliable, and effective American energy independence. Saudi Aramo’s shareholders seem to include the Chinese government sovereign wealth fund, CIC.”

Saudi Arameo’s subsidiaries also contain a significant presence of official Chinese government investors, according to McGeehan.

– Form Energy’s early investor, Breakthrough Energy Ventures, is an investment fund founded by Bill Gates which includes prominent limited partners such as the Saudi Arabian Prince Al Waleed binTalal al Saud – “who is well-noted for his 2017 arrest and release at the cost of $6 billion during a so-called ‘corruption crackdown,” McGeehan states.

“Moreover, Chinese mainland real estate moguls Pan Shiyi and Zhang Xin–along with many others with significant overseas business and political interests–directly hand foreign regimes significant leverage over them and their investments,” he writes to Form Energy.

– Form Energy’s early investor, Macquarie Capital, has substantial business interests in China, including more than $15 billion directly dedicated to the ongoing support of infrastructure projects throughout China and Asia, according to McGeehan.

– Another Form Energy investor, Temasek Holdings, is a state-owned enterprise and Sovereign wealth fund of the government of Singapore, he reports.

“The government of Singapore has a notably cozy and warm relationship with the People’s Republic of China and as recently as 2020, Singaporean professionals have been notoriously exposed in the act of spying on behalf of the Chinese Communist Party,” McGeehan states.

– Form Energy’s series E investor GIC is also a sovereign wealth fund of the government of Singapore and poses similar concerns as Temasek, including a very significant exposure to Chinese political machinations, dealmakers, and market pressures to conform with the desires of the Chinese Communist Party, according to McGeehan.

Among other things, McGeehan is now requesting Form Energy’s most recent capitalization table, as well as a complete list of all persons “who own equity or stock options of any kind” in the company.

He also wants a list of past investors, those who have recently made presentations to the company, and those who would have knowledge of technology and operations at Form Energy.

McGeehan said his requests to Form Energy went out just last week. He has yet to hear back from them, and he is not certain that he will.

“I’m sure it takes a little time to get the information I requested,” he said. “I don’t know any of them, and that’s another part of the problem.”

McGeehan added he is not even certain Form Energy has “a viable product.”

“They claim to have a new improved battery that can store energy, but they’re also not sure they are going to release it yet and show they can do what they say they can do,” he said.

“That’s ok if they are doing it on their own, but you would expect some cooperation before taxpayers fork over $300 million to them.”

McGeehan said he hasn’t had any pushback from the public since voicing his concerns.

“It seems like some of my colleagues would like to see due diligence done,” he said. “It seems to be our responsibility. I’m in favor of more economic development and economic prosperity, but not at the sacrifice of the common good.”