Biden’s former energy loan czar Jigar Shah distributed billions to green energy companies during his administration tenure, and now he’s helping those same businesses relocate to Europe for foreign government subsidies.

At a Glance

• Jigar Shah, former director of the DOE’s Loan Programs Office, distributed billions to green energy companies during Biden’s administration
• Shah is now actively helping these companies relocate to Europe to seek foreign government subsidies
• Many U.S. green companies are considering moving operations overseas due to potential federal funding cuts
• Shah has close financial ties to Plug Power, a struggling company set to receive a $1.5 billion DOE loan
• Lawmakers have raised serious concerns about conflicts of interest in Shah’s loan approvals

From Loan Director to Overseas Facilitator

Jigar Shah, who previously led the Department of Energy’s Loan Programs Office during the Biden administration, distributed billions of taxpayer dollars to green energy companies. Now that he’s left his government position, Shah is using his connections and expertise to help those same companies relocate operations to European markets. According to recent reports, Shah has been actively “talking to officials in Brussels about re-domiciling companies in Europe.”

This shift comes as many green energy companies face uncertainty about continued federal funding under potential new leadership. Bloomberg reported that “many of the companies that benefited from Biden-era programs [that] are now looking to shift all or part of their business outside the US” due to concerns about future support for clean energy initiatives in America. Shah views the European Union as particularly well-positioned to capitalize on this corporate migration.

Controversial Financial Ties

Shah’s activities have drawn scrutiny due to his complex web of financial relationships with the very companies receiving government loans. Among the most notable is Plug Power, a struggling green energy company that is set to receive a massive $1.5 billion loan from the Department of Energy’s loan office that Shah previously directed. Before his government role, Shah founded Generate Capital, an investment firm that provided over $100 million in financing to Plug Power.

“Such an intertwining of personal, political, and professional relationships raises further questions about the impartiality of loan approvals and the susceptibility of the process to undue political influence.”, said Senator John Barrasso

Plug Power has described Generate Capital as a “longstanding partner,” raising serious questions about whether Shah’s prior business dealings influenced his decision-making while in government. Notably, Plug Power repaid its loan to Generate Capital at a 9% interest rate while simultaneously negotiating for DOE funding, despite the company’s precarious financial position and ongoing operational challenges.

European Markets as the New Frontier

With Shah’s guidance, companies like Plug Power are increasingly looking to European markets as their next opportunity. Andy Marsh, Plug Power’s CEO, cited “uncertainty about clean energy programs” in the United States as a key reason for exploring European expansion. The company recently announced layoffs and is actively considering shifting its focus to European markets, where funding mechanisms like the E.U. Green Deal and the U.K. Energy Act offer alternative financial support.

Energy Secretary Chris Wright has suggested the possibility of canceling certain loans, with a renewed emphasis on funding that primarily benefits American taxpayers. This potential policy shift has accelerated the exodus of green energy companies seeking more stable government support overseas, with Shah positioning himself as the bridge between American green tech and European funding sources.

Financial Troubles Among Loan Recipients

Many of the companies that received federal loans under Shah’s direction are now facing significant financial difficulties. Plug Power’s situation is particularly dire, with the pending $1.5 billion DOE loan viewed as a crucial lifeline for the company’s survival. Other loan recipients like Li-Cycle and Sunnova are experiencing severe operational and financial challenges, raising questions about the due diligence performed during the loan approval process.

“Many of the companies that benefited from Biden-era programs [that] are now looking to shift all or part of their business outside the US.”, Bloomberg, said.

The DOE Loan Programs Office is expected to finalize Plug Power’s loan approval in early 2024, even as lawmakers and watchdogs call for thorough investigations into Shah’s ties to the company. Senator Barrasso and others have demanded transparency regarding potential conflicts of interest and the integrity of the federal loan program. As green energy companies continue their migration to European markets, these controversies highlight broader concerns about accountability in government funding decisions.

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