Michael Ahearn, the chief executive officer of Tempe-based First Solar Inc., said Thursday that the United States is on the cusp of a dramatic shift in policy that looks promising for renewable energy.
The proposals coming from President Barack Obama mirror many of those in Europe, where the solar-panel company has earned hundreds of millions of dollars in recent years building power plants, Ahearn said.
"It gives reason to believe we'll see a transformation here," he said, "but how to navigate from here to there, that's not trivial."
Ahearn spoke to about 200 people at an event sponsored by Arizona State University's W. P. Carey School of Business, which honored the school's finance-program graduate as its 26th Annual Executive of the Year at the Arizona Biltmore Resort and Spa in Phoenix.
Ahearn spent 20 minutes sharing his views about the renewable-energy industry.
Cutting emissions of greenhouse gases and maintaining the world's industrial output require "nothing short of a revolution," Ahearn said.
The business school presents the Executive of the Year honor to business leaders for inspired management and superior performance and to those who serve as a model for other business leaders.
A council of 100 national executives who serve as advisers and advocates of the school nominated Ahearn, who has a law degree from ASU as well and graduated from Chaparral High School.
The chairman of the council is Philip Francis, CEO of PetSmart Inc.
Past honorees include executives from Wells Fargo, eBay, Starbucks and other household brands.
First Solar has offices in Tempe and manufacturing plants in Ohio, Germany and Malaysia.
In final three months of 2008, First Solar was earning $1.5 million a day in profit. The vast majority of its solar panels is sold to large commercial-scale power plants in Europe.
"When I talk to people in the U.S. . . . they say (the German incentives for solar power) sound a little crazy," Ahearn said. "Here's the thing. There is a bigger picture that has not been explained well in the U.S. . . . The world is transforming to a low-carbon infrastructure."
He described Arizona's renewable-energy standard, which requires utilities to provide a certain amount of energy from sources like solar, as "embattled."
The standard has been challenged in court by a conservative group and has seen legislation introduced at the state level that would weaken the ratemaking authority the Corporation Commission used to impose the standard.
The challenges are a deterrent to companies hoping to supply renewable energy to Arizona, he said.
"If you are at all thoughtful, you definitely wouldn't make a decision based on that," Ahearn said. "People are at work trying to gut this thing."
The national political climate for renewable energy and cutting greenhouse-gas emissions is more favorable, he said.
"There are still people in the back corners who disbelieve (in global warming), but it doesn't get brought to the table," he said.
First Solar has made headway in the United States with deals to develop large solar installations in California, Nevada, and just this week, in New Mexico.
The company also developed a partnership for its solar panels to be used on small household rooftop arrays, including on homes in Arizona.
Ahearn's accomplishments with First Solar are timely, the council noted in his nomination for the honor, because of the current national focus on global warming, dependence on foreign oil and support of renewable energy from the new president.
Like all energy companies, First Solar has faced a volatile market in the past year.
Its stock price soared above $300 in 2008 as the company hurried to build new manufacturing lines to meet booming demand, only to see the stock price fall below $100 at the end of the year when oil prices retreated and tight credit stalled energy developments.
The company's shares have regained ground, closing Thursday at $150.39.
The company recently has driven the manufacturing price for its solar panels down below $1 per watt of electrical output, and it likely will benefit from enticements for renewable energy in the federal stimulus package.
"Volumes are going to go up," Ahearn said, "and costs are going to come down for some time."
Monday, March 30, 2009
SOLYNDRA, a developer of thin-film solar cells, will be the first company to benefit from a long-delayed federal program providing loan guarantees for clean-energy projects. The Department of Energy has offered the Freemont, Calif.-based start-up $535 million in construction financing to expand its manufacturing capacity to 500 MW per year.
Solyndra's solar tubes cast striking shadows on an industrial roof top. Solyndra
Solyndra's solar tubes cast striking shadows on an industrial roof top.
The funds will cover 73% of the cost of adding significant capacity to Solyndra's current operation. The new factory will employ about 1,000 people.
Solar industry watchers had all but given up hope that money would be made available under the program, which was authorized in the 2005 Energy Act. But last month, DOE Secretary Steven Chu vowed to streamline the application process.
Solyndra makes solar panels for installation on commercial and industrial rooftops. Rather than lay the usual silicon wafer or film under a plate of glass, the firm constructs the panels by depositing copper indium gallium selenide (CIGS) photovoltaics on the inside of glass tubes.
CIGS films have been shown in the lab to be more efficient than silicon films at converting sunlight to energy, but Solyndra says its panels get their cost-effectiveness mainly from cheaper installation and denser coverage of the rooftop.
Solyndra is a curious but appropriate pick to be the first recipient of the financing, according to Glenn Harris, CEO of consultancy SunCentric. "It has taken a unique approach that a lot of people agree is very intriguing. But the government, by backing it, didn't back an esoteric, just-out-of-a-lab technology. They bet on something that is proven," he says.
In fact, the quiet but well-funded start-up claims on its website to have more than $1.5 billion in orders for the panels from customers in the U.S. and Europe. Solyndra was founded in 2005, and industry watcher CleanTech Group estimates that it has raised $820 million in venture capital funding.
Monique Hanis, spokeswoman for the Solar Energy Industries Association, is hopeful that the announcement will be followed by a series of similar financing promises. She says solar capacity, which grew 17% in 2008, has been at risk of collapse because of the credit crunch.
Solyndra's solar tubes cast striking shadows on an industrial roof top. Solyndra
Solyndra's solar tubes cast striking shadows on an industrial roof top.
The funds will cover 73% of the cost of adding significant capacity to Solyndra's current operation. The new factory will employ about 1,000 people.
Solar industry watchers had all but given up hope that money would be made available under the program, which was authorized in the 2005 Energy Act. But last month, DOE Secretary Steven Chu vowed to streamline the application process.
Solyndra makes solar panels for installation on commercial and industrial rooftops. Rather than lay the usual silicon wafer or film under a plate of glass, the firm constructs the panels by depositing copper indium gallium selenide (CIGS) photovoltaics on the inside of glass tubes.
CIGS films have been shown in the lab to be more efficient than silicon films at converting sunlight to energy, but Solyndra says its panels get their cost-effectiveness mainly from cheaper installation and denser coverage of the rooftop.
Solyndra is a curious but appropriate pick to be the first recipient of the financing, according to Glenn Harris, CEO of consultancy SunCentric. "It has taken a unique approach that a lot of people agree is very intriguing. But the government, by backing it, didn't back an esoteric, just-out-of-a-lab technology. They bet on something that is proven," he says.
In fact, the quiet but well-funded start-up claims on its website to have more than $1.5 billion in orders for the panels from customers in the U.S. and Europe. Solyndra was founded in 2005, and industry watcher CleanTech Group estimates that it has raised $820 million in venture capital funding.
Monique Hanis, spokeswoman for the Solar Energy Industries Association, is hopeful that the announcement will be followed by a series of similar financing promises. She says solar capacity, which grew 17% in 2008, has been at risk of collapse because of the credit crunch.
North Andover business makes the switch from fossil to solar fuel
As he travels around the country touting his economic plan, Obama talks a lot about the so-called "green economy." He says making the switch from fossil fuels to alternative sources of energy is one of the keys to prosperity in the United States.
Greg and Maryann Scarangello have heard and are heeding his message.
The proprietors of Scarangello Heating and Air-Conditioning have decided to start pushing solar power in addition to super-efficient heat pumps and other technology as a way to help their customers beat the high financial and environmental cost of fossil fuels.
They are so convinced of their mission that they even installed a five-panel solar hot water array in their backyard.
"Everyone wanted off oil last year," said Maryann, 41, recalling that the price of home-heating fuel was around $4 a gallon at one point. When their customers asked how they could reduce their heating bills, the first thing the Scarangellos offered was to install an energy-efficient heat pump.
The heat pumps, made by Hallowell International Heating and Cooling in Bangor, Maine, run on electricity and help pump warm air through the house. Customers loved them, Maryann said. While the pumps enabled people to throw out their oil tanks, they still run on electricity which must be generated somewhere — most likely by a power plant.
"Last summer, our phone was ringing off the hook," Maryann said. "Everyone wanted to do heat pumps."
Recently, business has slowed with the economy, but the Scarangellos have decided to diversify their offerings.
Encouraged by Obama's push on green energy as well as generous state and federal tax credits that can cut the cost of alternative energy projects in half, they decided to branch out into solar power.
Greg Scarangello, 47, said it has been easy for him to make the switch from traditional to alternative energy sources, and that the piping work is similar.
He installed the solar panels in his backyard, even building the frame that holds them. A line carrying fluid treated with anti-freeze runs from the panels into the home, where it enters a tank. The hot fluid from the solar panels warms the water inside the hot-water tank so that upstairs, Maryann can take what she said are "45-minute showers."
They admit that installations aren't cheap, with upfront costs for a heat-pump retrofit running around $10,000, and installation of a simple, solar hot-water system around $10,000. But with state and federal tax credits, as well as long-term savings factored in, such projects become worthwhile.
The couple hopes to branch out further in the coming years into additional alternative energy projects, including wind and geothermal power.
Greg and Maryann Scarangello have heard and are heeding his message.
The proprietors of Scarangello Heating and Air-Conditioning have decided to start pushing solar power in addition to super-efficient heat pumps and other technology as a way to help their customers beat the high financial and environmental cost of fossil fuels.
They are so convinced of their mission that they even installed a five-panel solar hot water array in their backyard.
"Everyone wanted off oil last year," said Maryann, 41, recalling that the price of home-heating fuel was around $4 a gallon at one point. When their customers asked how they could reduce their heating bills, the first thing the Scarangellos offered was to install an energy-efficient heat pump.
The heat pumps, made by Hallowell International Heating and Cooling in Bangor, Maine, run on electricity and help pump warm air through the house. Customers loved them, Maryann said. While the pumps enabled people to throw out their oil tanks, they still run on electricity which must be generated somewhere — most likely by a power plant.
"Last summer, our phone was ringing off the hook," Maryann said. "Everyone wanted to do heat pumps."
Recently, business has slowed with the economy, but the Scarangellos have decided to diversify their offerings.
Encouraged by Obama's push on green energy as well as generous state and federal tax credits that can cut the cost of alternative energy projects in half, they decided to branch out into solar power.
Greg Scarangello, 47, said it has been easy for him to make the switch from traditional to alternative energy sources, and that the piping work is similar.
He installed the solar panels in his backyard, even building the frame that holds them. A line carrying fluid treated with anti-freeze runs from the panels into the home, where it enters a tank. The hot fluid from the solar panels warms the water inside the hot-water tank so that upstairs, Maryann can take what she said are "45-minute showers."
They admit that installations aren't cheap, with upfront costs for a heat-pump retrofit running around $10,000, and installation of a simple, solar hot-water system around $10,000. But with state and federal tax credits, as well as long-term savings factored in, such projects become worthwhile.
The couple hopes to branch out further in the coming years into additional alternative energy projects, including wind and geothermal power.
Dow Corning proposes solar research center
Dow Corning Corp. hopes to make its Bay County headquarters a global center for solar energy research.
But first, the corporation wants state and federal financial support to help build a proposed $60 million to $80 million research facility.
If those plans become reality, the center would employ 250 people at first and as many as 2,000 eventually. It would be a world-class facility for solar innovation that would bring together top scientists and university researchers, Dow Corning spokeswoman Mary Lou Benecke said Friday. And it could anchor a larger science and technology park.
For now, though, the project is still in the discussion stage.
"We're not digging the foundation yet," Benecke said. "We're talking about it and it's something we'd really love to do. We believe there is a need for it in the industry."
Dow Corning is calling the proposed facility the American Solar Power Innovation and Research Enterprise, or ASPIRE. The corporation has presented a draft proposal to the Michigan Economic Development Corp. to make a business case for the project.
ASPIRE would operate as a nonprofit research organization, separate from Dow Corning's own research and development activities, according to the draft.
Dow Corning would help support and manage the facility on or near its corporate campus, located near the intersection of US-10 and highway M-47 in southwest Bay County.
Benecke said Dow Corning hopes to develop a financing package for the project this year. Financing would include an undetermined amount of cash from Dow Corning.
"We're trying to get some state and federal funding. We'd like to do it here in Michigan," she said.
Although ASPIRE has been discussed in a few public forums, the solar research center remains a concept and not a definite plan, Benecke said.
"If we got our way, this is what we would like," she said.
Dow Corning and its majority-owned subsidiary, Hemlock Semiconductor Corp., are moving aggressively into the solar industry as leaders in the manufacture of materials used in solar panels.
HSC launched a $1 billion expansion in Saginaw County in 2008 and broke ground for a similar facility in Tennessee this month. Hemlock makes polycrystalline silicon, used in solar wafers.
Dow Corning also plans to build a plant in Saginaw County to produce monosilane gas, which is used in thin-film solar cells. Dow Corning also has a small research center for the solar industry in Freeland.
Officials from the MEDC could not be reached Friday evening for comment.
But first, the corporation wants state and federal financial support to help build a proposed $60 million to $80 million research facility.
If those plans become reality, the center would employ 250 people at first and as many as 2,000 eventually. It would be a world-class facility for solar innovation that would bring together top scientists and university researchers, Dow Corning spokeswoman Mary Lou Benecke said Friday. And it could anchor a larger science and technology park.
For now, though, the project is still in the discussion stage.
"We're not digging the foundation yet," Benecke said. "We're talking about it and it's something we'd really love to do. We believe there is a need for it in the industry."
Dow Corning is calling the proposed facility the American Solar Power Innovation and Research Enterprise, or ASPIRE. The corporation has presented a draft proposal to the Michigan Economic Development Corp. to make a business case for the project.
ASPIRE would operate as a nonprofit research organization, separate from Dow Corning's own research and development activities, according to the draft.
Dow Corning would help support and manage the facility on or near its corporate campus, located near the intersection of US-10 and highway M-47 in southwest Bay County.
Benecke said Dow Corning hopes to develop a financing package for the project this year. Financing would include an undetermined amount of cash from Dow Corning.
"We're trying to get some state and federal funding. We'd like to do it here in Michigan," she said.
Although ASPIRE has been discussed in a few public forums, the solar research center remains a concept and not a definite plan, Benecke said.
"If we got our way, this is what we would like," she said.
Dow Corning and its majority-owned subsidiary, Hemlock Semiconductor Corp., are moving aggressively into the solar industry as leaders in the manufacture of materials used in solar panels.
HSC launched a $1 billion expansion in Saginaw County in 2008 and broke ground for a similar facility in Tennessee this month. Hemlock makes polycrystalline silicon, used in solar wafers.
Dow Corning also plans to build a plant in Saginaw County to produce monosilane gas, which is used in thin-film solar cells. Dow Corning also has a small research center for the solar industry in Freeland.
Officials from the MEDC could not be reached Friday evening for comment.
Friday, March 27, 2009
Solar energy firm to start production
"The fact that we have a new company like this with a highly efficient product to create energy … is very exciting," Mr. Strickland said. Ohio officials are providing a $5 million economic development loan and a $500,000 grant to the company.
Willard & Kelsey is seeking $100 million in federal stimulus money to support a proposed $1.2 billion solar-panel manufacturing park in Perrysburg that it claims will create nearly 3,700 jobs.
For now, company officials are concentrating on the existing $14 million plant.
Willard & Kelsey had hoped to launch production last year, but was delayed by the nation's credit crisis, Perrysburg municipal officials have been told.
But executives of the company, which is one of at least four firms making solar panels in metro Toledo or researching low-cost thin-film panel production here, say they are ready to move forward.
In his first extensive public comments, Chief Executive
William R. Mitchell said that trial production will begin in the coming weeks and that full-scale manufacturing will start in the next seven to eight months.
Hiring will be handled by the Wood County Department of Job and Family Services. The firm hopes to hire 400 employees by the end of 2009. The firm told the state the jobs would have an average wage of $21 an hour.
The firm's panels, which will use low-cost technology similar to that used at a nearby factory of Arizona-based First Solar Inc., expects to submit the panels for certification next month to Underwriters Laboratory and other certifying organizations, Mr. Mitchell said.
He would not comment on whether the firm will be able to make panels more cheaply than First Solar, whose low-cost technology has made it one of the top producers in the world.
But Mr. Mitchell said the proprietary method used by Willard & Kelsey to chemically coat glass panels requires 70 percent less energy than the process at First Solar.
Willard & Kelsey expects to operate around the clock, Mr. Mitchell said.
The firm is in final discussions with an undisclosed prospective customer that is interested in buying all of the panels the firm can produce over the next two to three years, he added.
The Willard & Kelsey firm now employs 34 people. All, except Mr. Mitchell, are veterans of First Solar or Glasstech Inc., another Toledo company involved in the glass industry, the chief executive said. The late industrialist Harold McMaster, a pioneer in solar-panel technology, founded both First Solar and Glasstech.
Willard & Kelsey was started by Michael Cicak, a Glasstech veteran. Willard & Kelsey's name comes from an intersection in East Toledo near where he grew up. Mr. Cicak serves as company chairman. James Appold, president of Consolidated Biscuit Co., is vice chairman. Company officials said a year ago they had $22 million from private investors.
The work of Mr. McMaster, pioneering research at the University of Toledo, and success of First Solar's first plant in Perrysburg have earned Toledo a reputation as a leading center of low-cost solar panel technology.
Another firm, Xunlight Corp., plans to begin production in Toledo. And a unit of German solar giant Q-Cells AG has a research operation in Perrysburg.
Willard & Kelsey is seeking $100 million in federal stimulus money to support a proposed $1.2 billion solar-panel manufacturing park in Perrysburg that it claims will create nearly 3,700 jobs.
For now, company officials are concentrating on the existing $14 million plant.
Willard & Kelsey had hoped to launch production last year, but was delayed by the nation's credit crisis, Perrysburg municipal officials have been told.
But executives of the company, which is one of at least four firms making solar panels in metro Toledo or researching low-cost thin-film panel production here, say they are ready to move forward.
In his first extensive public comments, Chief Executive
William R. Mitchell said that trial production will begin in the coming weeks and that full-scale manufacturing will start in the next seven to eight months.
Hiring will be handled by the Wood County Department of Job and Family Services. The firm hopes to hire 400 employees by the end of 2009. The firm told the state the jobs would have an average wage of $21 an hour.
The firm's panels, which will use low-cost technology similar to that used at a nearby factory of Arizona-based First Solar Inc., expects to submit the panels for certification next month to Underwriters Laboratory and other certifying organizations, Mr. Mitchell said.
He would not comment on whether the firm will be able to make panels more cheaply than First Solar, whose low-cost technology has made it one of the top producers in the world.
But Mr. Mitchell said the proprietary method used by Willard & Kelsey to chemically coat glass panels requires 70 percent less energy than the process at First Solar.
Willard & Kelsey expects to operate around the clock, Mr. Mitchell said.
The firm is in final discussions with an undisclosed prospective customer that is interested in buying all of the panels the firm can produce over the next two to three years, he added.
The Willard & Kelsey firm now employs 34 people. All, except Mr. Mitchell, are veterans of First Solar or Glasstech Inc., another Toledo company involved in the glass industry, the chief executive said. The late industrialist Harold McMaster, a pioneer in solar-panel technology, founded both First Solar and Glasstech.
Willard & Kelsey was started by Michael Cicak, a Glasstech veteran. Willard & Kelsey's name comes from an intersection in East Toledo near where he grew up. Mr. Cicak serves as company chairman. James Appold, president of Consolidated Biscuit Co., is vice chairman. Company officials said a year ago they had $22 million from private investors.
The work of Mr. McMaster, pioneering research at the University of Toledo, and success of First Solar's first plant in Perrysburg have earned Toledo a reputation as a leading center of low-cost solar panel technology.
Another firm, Xunlight Corp., plans to begin production in Toledo. And a unit of German solar giant Q-Cells AG has a research operation in Perrysburg.
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