(Daily Caller)—The past week has been marked by worrying developments for the state of the green energy industry, suggesting that President Joe Biden’s sweeping climate agenda could be imperiled.
Offshore wind companies are cancelling projects and executives are sounding the alarm on the state of the industry, while solar companies and indexes have seen their value continue a months-long slide that has resulted in diminished earnings forecasts and a solar-oriented loan provider’s bankruptcy. These developments suggest that Biden’s sweeping green energy plans could be in trouble, especially given the intractable nature of some of the crucial economic problems plaguing the industries.
“Boosters for this energy transition bet the farm on three rent-seeking industries: wind, solar and electric vehicles. Two legs of that three-legged stool are now showing signs of financial distress despite massive subsidies they’ve already received from multiple levels of government,” David Blackmon, a 40-year veteran of the oil and gas industry who now writes and consults extensively on energy, told the Daily Caller News Foundation. “American consumers, who are paying the price for this in the form of skyrocketing costs of all forms of energy, should demand their representatives hang up the phone when the calls come in from wind and automaker executives asking for even more.”
.@larry_kudlow: "The Green New Deal is destroying jobs." pic.twitter.com/5GzLTdVvKH
— Daily Caller (@DailyCaller) September 26, 2023
Orsted, a Danish offshore wind company, announced on Tuesday that it cancelled two major developments off the coast of New Jersey. Company executives blamed factors like inflation, interest rates and supply chain woes, saying that the problems had left the firm little choice but to walk away from the major projects.
Since the cancellations, the company’s stock price has fallen even further and S&P has indicated that it is considering downgrading the company’s credit rating. But Orsted is not the only offshore wind company showing signs that the industry may be in an extremely precarious position.
The U.S. offshore wind industry appears to be “fundamentally broken” due to problems with permitting and rising costs, Anja-Isabel Dotzenrath, the head of gas and low carbon energy for British Petroleum (BP), said at a conference on Wednesday, according to Bloomberg News. “There’s a fundamental reset needed,” she said, suggesting that there could be solutions and that her company is working with its partner to assess “options for their U.S. offshore wind projects to mitigate the effect of inflationary pressures and permitting delays.”
Under Biden’s leadership, the federal government has heavily subsidized the offshore wind developments, primarily via the Inflation Reduction Act (IRA), in a bid to have the industry provide enough power to source electricity for 10 million American homes by 2030. The state of the industry is so dire that numerous energy market experts told the DCNF that a government bailout for the industry may be just around the corner.
Fox News’ Peter Doocy presses @PressSec about where laid off energy workers would go to get “green” jobs:
President Biden “laid out a plan that will not only create millions of good union jobs but also help tackle the climate crisis.”
pic.twitter.com/MNJauWzYoB— Daily Caller (@DailyCaller) February 8, 2021
The offshore wind goal is just one slice of the administration’s efforts to decarbonize the American energy sector by 2035 and then have the entire U.S. economy reach net-zero carbon dioxide emissions by 2050.
Like offshore wind, the administration is counting on solar power to emerge in the coming years as a replacement for the energy generated by fossil fuel infrastructure. Solar power is also similar to wind power in that it is intermittent and currently more expensive than power sourced by natural gas and other fossil fuels, according to Peter Grossman, an emeritus professor of economics for Butler University.
Solar companies have generally had a rough 2023 so far, and this past week has been no different: while stocks are down for several leading solar producers, Sunlight Financing, a company which provided loans to consumers to buy residential solar systems, filed for Chapter 11 bankruptcy on Monday. Several leading home system installers pared back their outlooks for the year this week as well, as higher interest rates and inflation have cooled consumer demand, according to Bloomberg News.
“The green industry makes products that are both very expensive and mostly ineffective,” Larry Behrens, the communications director for Power The Future, told the DCNF. “Yet, instead of admitting reality, we have an administration in Washington that is doubling-down and working overtime to force these terrible products into our lives,” he continued, adding that “thanks to the laughably-named Inflation Reduction Act, Joe Biden has a $369 billion dollar green slush fund and he’s put a political operative in charge of it… Joe Biden knows that when the green agenda fails, his legacy will sink even further, so there will be no dollar amount too high to keep green boondoggles afloat for as long as possible.”
The White House, Orsted, BP and Sunlight Financing all did not respond immediately to requests for comment.
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Two Storms, One Harvest
Every food crisis in living memory has been a one-shock event. The 2008 price spike was a commodity bubble. The 2020 shortages were a logistics failure. The 2022 grain scare was a war on one exporter’s ports. Each time, the system bent, adjusted, and recovered, and each time the experts assured us afterward that global markets are simply too big and too diversified to fail.
What nobody in Washington seems eager to discuss is that 2026 is shaping up to be something the modern food system has never actually faced. Two independent shocks, one climatic and one geopolitical, are converging on the same harvest cycle at the same time. Not sequentially. Simultaneously.
Start with the weather. The Pacific Ocean is currently building toward what forecasters now openly call a record event. NOAA’s Climate Prediction Center puts the odds of at least a strong El Niño near 88 percent, with roughly two in three odds it reaches “very strong” status, the tier reserved for perhaps three or four events in the entire satellite era. Every major global model now projects a median peak in Super El Niño territory, and most of them project it exceeding the 2015-16 event, which until now held the modern record. Sea surface anomalies were already brushing the super threshold in mid-July, months before these events normally peak. The atmosphere has already shifted into El Niño mode, and the event is forecast to crest in late fall and early winter.
This is not about “climate change.” It’s about the standard cycles of weather, and the cycle we’re currently in is one that has likely devastated societies in the past. We’re better prepared as a society today, but not all Americans are equally prepared.
Serious households have started doing the quiet math on their own. Grocery bills tell part of the story, and the forecast maps tell the rest, which is why long-term food storage has moved from fringe hobby to mainstream line item in the family budget, with established suppliers like Heaven’s Harvest seeing demand from people who five years ago would have rolled their eyes at the idea. That instinct is not paranoia. It is pattern recognition, and the pattern is worth walking through carefully.
Editor’s Note: Heaven’s Harvest IS a sponsor, but the warnings of this article are real and would be written even if we didn’t have a survival food sponsor. With that said, those who take advantage of what they offer can use promo code “Patriot” for 15% off.
The Fertilizer Clock Is Already Running
While the Pacific warms, the second shock has been unfolding in the Strait of Hormuz. The conflict with Iran turned the world’s most important energy chokepoint into a contested waterway, and the consequences reach far beyond the gas pump. Roughly a third of global fertilizer trade moves through Hormuz, and the disruption sent urea prices up 86 percent year over year by March, with a 53 percent jump in a single month.
The World Bank projects energy prices rising about 24 percent in 2026 and fertilizer about 31 percent. By its own accounting, fertilizer prices ran 35 percent higher in the first five months of this year than the same period last year.
Here is the mechanism the nightly news will not explain. Fertilizer is not a grocery item. It is a time-delayed input. The nitrogen a farmer in Iowa or Punjab could not afford to apply this spring does not show up as a problem this spring. It shows up as a thinner harvest six to twelve months later.
The World Bank’s own food security brief concedes that the effects of reduced applications earlier this season “are likely to become visible only later in harvest outcomes.” Translate that from institutional language into plain English and it means this. The damage is already done, it is already in the ground, and we are simply waiting for it to arrive on the shelf.
Now check the calendar. Six to twelve months from the spring planting season lands us squarely in late 2026 and early 2027. Which is precisely when the strongest El Niño in the instrumental record is forecast to peak, bringing its signature droughts to Southeast Asia, Australia, southern Africa, northern Brazil, and South Asia, the very regions that grow the world’s rice, sugar, and oilseeds.
The World Bank warns openly that a strong El Niño “could disrupt multiple crop belts simultaneously” on top of the conflict-driven input costs. Their baseline projection assumes the Middle East disruptions ease by autumn. What in the last two years of Middle East history suggests that assumption is safe?
The System Has No Slack Left
The comfortable answer is that global markets always adjust. But adjustment requires slack, and the slack is gone. Global cereal production is expected to decline from last year’s records even before El Niño does its work. The UN World Food Programme, hardly a den of right-wing preppers, is calling this the most significant disruption to its supply chains since Covid and the invasion of Ukraine, and its supply chain director put the stakes bluntly.
Today’s supply chain challenges are tomorrow’s hunger crisis.
There is also a political dimension that markets cannot price. When food gets scarce, governments do not behave like economists. They behave like politicians. Export bans, hoarding mandates, and panic buying at the national level turned the modest rice shortfall of 2008 into a global crisis, and analysts are already warning that import-dependent nations are the first dominoes.
The 2015-16 Super El Niño, a far weaker event than what is now forecast, threw tens of millions into food stress across Africa and Asia. This one is projected to be stronger, and it arrives with fertilizer already rationed by price and shipping lanes already contested by missiles.
What Joseph Knew
Scripture does not treat preparation for lean years as faithlessness. It treats it as wisdom delivered in advance to those willing to act on it.
Behold, there come seven years of great plenty throughout all the land of Egypt: And there shall arise after them seven years of famine; and all the plenty shall be forgotten in the land of Egypt.
Joseph did not respond to that warning with a hashtag or a committee. He stored grain during the years of abundance, and when the famine came, Egypt stood while its neighbors begged. The lesson is not that famine is certain. It is that the time to prepare is precisely when preparation still looks optional.
Nobody who filled a pantry in a year of plenty has ever regretted it, and nobody standing in an empty aisle has ever been glad he waited for certainty.
None of this calls for panic, and panic is the enemy of sound judgment anyway. It calls for the same unglamorous prudence our grandparents considered ordinary. Keep some cash margin, know your local growers, and put real food in deep storage while it is cheap and available, because the entire arc of this story is that cheap and available is a closing window.
Families looking for a straightforward place to start can visit Heaven’s Harvest and use promo code Patriot for 15 percent off long-term storable food. The forecasts may yet soften, the strait may yet reopen, and we should pray they do. But hope is a fine thing to hold and a foolish thing to eat.