Is The Daqo IPO Back? Chinese Polysilicon Maker Files New Business Plan With SEC

August 20, 2010

Daqo New Energy Corp. postponed an initial public offer in January. Two days ago, it filed new documents with the Securities & Exchange Commission suggesting a $100 million IPO may be back on the table.

The new filing lays out a business plan that is scaled back in one measure and more aggressive in another. It also points out that sales have doubled so far this year – growth that could interest investors.

Daqo is a Chinese manufacturer of polysilicon used by solar companies Yingli Green Energy, Solarfun, Solargiga, China Sunergy and Tianwei New Energy to produce photovoltaic products. It boasts it is one of largest polysilicon companies in China.

Taqo has nonetheless scaled back its expansion plans. In its January filing with the SEC, it projected production capacity of 3.300 metric tones by September 2009.

Its updated filing on Aug. 18 says this same level of production capacity (3,300 metric tones) was in place as of June 2010. Plans now call for an expansion to 7,300 metric tonnes by the end of 2012, instead of the 9.300 metric tonnes projected in January.

At the same time, the company is more aggressively pursuing vertical integration. It plans to begin commercial wafer manufacturing in the first quarter of 2011. Module production already has begun with solar cells it buys from other makers. As of June, module production capacity was 50 megawatts. It will grow to 200 megawatts in the first quarter of 2011.

“We also intend to enter into the cell manufacturing business in the future,” the documents says – a new addition to the business plan.

In its January papers, the company’s goal was to expand into module manufacturing and solar power system integration and installation. It offered few details.

Business so far this year appears solid. The company’s revenue for the first six months of the year doubled to $98 million from $49 million for the same period in 2009. Profits rose more slowly, to $18 million from $14 million. For all of 2009, sales were $111 million and net income was $30 million.

Daqo said it would use the money from an IPO to expand its polysilicon and module businesses and to enter wafer manufacturing. It is not the only Chinese solar company to balk on an IPO this year. Both Trony Solar Holdings and JinkoSolar Holding have back away from selling shares to the public.

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Posted by Mark Boslet

Will The U.S. Generate Too Much Energy? Vinod Khosla Thinks So

August 12, 2010

The potential for clean-tech innovation is so great you might be wise to expect the unexpected. What about an energy glut?

This was the prediction of rock star venture capitalist Vinod Khosla during a panel discussion Tuesday. The event at Google’s Silicon Valley campus was held to discuss the implications of California’s Proposition 23, an attempt to rollback the state’s ambitious climate legislation.

But Khosla stole the show with his outlook for the clean-tech innovation and energy use. “In 10 to 15 years, we will be shutting down (power) plants” because of an excess of electricity in this country, Khosla said. There is an “infinite” opportunity for technological innovation.

Such an upbeat outlook is no surprise from a man whose venture firm, Khosla Ventures, is an active clean-tech investor. Khosla said his firm is backing companies that hope to cut energy use in lighting and data center server racks by 80 percent.

He is equally upbeat about prospects for the United States over China – not always the prevailing wisdom these days. “I won’t say China is winning the clean-tech race,” he says. “But they are clearly paying a lot more attention to the race.”

Here are several other observations from the panel:

*Asked if there was an advantage to creating companies in Silicon Valley rather than China, Khosla was emphatic. “No question about it.” The people are here. The markets are here.

*Nuclear power no longer has an advantage over renewables, he added. There hasn’t been a nuclear plant build in recent years that can beat $7,000 a kilowatt. That makes wind and solar (in some parts of the world) competitive, he says.

*Proposition 23 is a threat because it will kill the clean-energy markets California’s A.B. 32 created. Both Khosla and Google Green Energy Czar William Wiehl concur on this point. Proposition 23, which will go to the ballot in November, would suspend A.B. 32 until the state’s unemployment rate drops to 5.5 percent or less for four consecutive quarters. Texas oil companies Valero and Tesoro back the measure. A.B. 32 sets reporting guidelines for polluters, establishes a statewide limit for carbon and guides emissions back to 1990 levels by 2020.

*A.B. 32 has helped create 500,000 clean-tech jobs in California, Wiehl says.

*Google, adds Wiehl, has made strides with energy efficiency. The company builds its own data centers and servers. As a result, data center energy use is one half of what it would be if the company followed industry-standard best practices, he said.

*As to the next “Google.” “There is no doubt in my mind we will see 10 of these” in clean tech, says Khosla. “Today California has the pole position to win that race.”

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Posted by Mark Boslet

Is Google Set To Fail In China?

July 24, 2010

Google might be firing at all cylinders when it comes to gargantuan search shares. But in China, the search giant has some problems, losing out to the dominant local engine, Baidu. The figures state that Google’s search share fell from its previous 71.1 percent to 69.7 percent [source], a huge plunge given that the duration for that drop was only three months.

All that affect has primarily come due to its failure to get a grip in China, a massive Internet market, which if summed up, hasn’t been successfully tapped by anyone from the West. Google, is no exception. In my opinion, the search market, or any other as a matter of fact is on the verge or has reached saturation and 71.1 percent was the maximum Google would have reached. However the much newer and rapidly expanding Asian markets are still untapped and the Silicon Valley is finding it nearly impossible to penetrate these. At least China for sure, of course the country has a huge firewall all around it which ensures that the only thing that gets through is what the ruling body thinks should otherwise there is a huge Block ready to keep you out.

Baidu currently holds 4.6 percent in the global search market, which is just shy of Microsoft with 4.8 percent and Yahoo with 5.6 percent.

Of course Google is still the most popular search destination for anyone online,but its recent tactics to deal with the strict censorship in China have to a large extent backfired. That included the termination of Google.cn earlier this year as well as threatening to pull out of China. If I were Google, I wouldn’t do that for the huge market it is. Lets say if only half of the 1.3 billion people in China have access online in the next couple of years and all they have is Baidu, I bet Google’s dominant position would be challenged big time.

Well it will at least be zeroed out in China for all times to come.

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Posted by TechPulse 360

Eco City Movement Expands In Sweden

April 27, 2010

Eco-cities are spreading around the world, from Dongtan in China to Moreland in Australia and Masdar in Abu Dhabi.

One of the granddaddies of this municipal experiment in sustainable living – Hammarby Sjostad in Sweden – is expanding as well. A second, larger eco community is under develop in Stockholm – the Stockholm Royal Seaport – and builders are moving ahead on additional sites in Malmo, Vaxjo and Gothenburg, according to Olov Hemstrom, head of consulting at the Swedish Trade Council.

Energy and water use are down 40 percent at the eco-city Hammarby Sjostad.

The term eco-city was coined more than two decades ago by theorist Richard Register in his book: Ecocity Berkeley: Building Cities for a Healthy Future. The desire to create communities that use less energy, water and food and which produce less waste and CO2 emissions has gained steam in recent years.

Hemstrom said at the Nordic Green II conference that the most recent results of Hammarby Sjostad’s “holistic” approach to metropolitan living are impressive. The suburb of 25,000 people uses 40 percent less energy than a typical community, 40 percent less water and traffic has fallen by 40 percent.

This has been accomplished while holding construction costs to 2 percent to 3 percent more than a non-eco community. Property values since the community’s founding have risen 25 percent.

The Stockholm Royal Seaport will exceed these results. “We want to do even better,” he said. “The whole approach is integrated planning.” The 35,000-person development is likely to take 10 years to develop.

At Hammarby Sjostad, household waste is carted to a waste-to-energy plant and used to heat buildings. Solar panels produce hot water, and triple-pane windows keep out the cold. Grey water from washing and domestic use is mined for biogas, which then fuels community buses. Rail and boat service keeps people from needing cars.

Technology has advanced to the point where Stockholm Royal Seaport should be close to energy neutral, claims Hemstrom. This will reduce carbon emissions to 1.5 tonnes a person a year, or a two-fold improvement over Hammarby Sjostad.

The goal is to make the community a showcase and to be entirely fossil fuel free by 2030. Such an accomplishment would be another milestone in the eco-city movement.

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Posted by Mark Boslet

Bridgelux CEO Sees $10 LED Bulbs This Year And Has No Fear Of China

April 21, 2010

There will be a revolution in lighting within five years as cheap, bright, energy-efficiency LEDs elbow their way into the market, claims Bridgelux CEO William Watkins.

China is working on last year's technology, not next year's says Bridgelux's William Watkins

The first proof of this transition: $10 LED bulbs this year burning at bright as 40 watts, Watkins said Wednesday. At this price, consumers start to get interested, he suggested.

Watkins, who took over as LED-maker Bridgelux’s top executive three months ago, has never been afraid to speak his mind. This was the case when he ran he world’s largest disk drive company, Seagate Technology. It is turning out to be true as he settles into his new job.

During a Wednesday evening interview, Watkins said Bridgelux has seen early success with its new LED socket design. The design allows LED, or light-emitting diode, chips to snap easily in and out of fixtures, making the substitution of a new brighter bulb simple.

There will be light fixtures with the new sockets on display at the LightFair trade show in Las Vegas on May 12, less than two months after the product’s unveiling.

Watkins saved his sharpest comments for competition from China, which is on the rise. About 50 Chinese companies make LEDs and all are receiving funding from the government, he said. Streetlights across China will all be LEDs, and municipalities will subsidize the production.

So will competition get fierce? Perhaps. But Chinese companies are not on the cutting edge of technology, he says. They are not developing next year’s technology, they are copying last year’s technology, Watkins explains.

“What scares me is if China begins to enforce (intellectual property) rights,” he says. If inventors can enforce their IP rights, the nation begins to nurture the environment of innovation that is missing today, he says.

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Posted by Mark Boslet

US Wind Energy Added More Capacity In 2009 Than Any Other Year

April 8, 2010

Iowa gets more of its electricity from wind power than any other state – 14%. Texas has greatest generating capacity and the largest farms.

Across the country, 85,000 people are employed in the wind energy industry, with 10 new manufacturing plants beginning operation last year.

Iowa gets more of its electricity from wind power than any other state - 14 percent. Texas has the most utility-scale farms.

These are the findings of the American Wind Energy Associations annual report on the industry, released Thursday. China is out muscling the United States and most other countries with its efforts to add wind generation and manufacturing capacity.

But the U.S. is not standing still. The study finds that the nation installed 10,000 MW of wind power in 2009, more than any other year. Sure, new project planning slowed during the year, but 36 states now have utility-scale farms and 14 have more than a GW of generating capacity.

Leading the wind turbine market is GE and the largest owner of wind farms is NextEra Energy Resources. Xcel Energy of Minnesota is the utility with the wind power feeding into its distribution gird.

According to the report, 10 manufacturing plants came into operation last year and 20 new ones were announced. Even the market for small, residential, turbines chugged along. It grew 15 percent, with 20 MW of capacity sold.

Obviously the industry has a tough battle ahead considering the gargantuan resources China is putting behind wind energy and that country’s cheap labor. The challenge is all the more daunting give the tight credit conditions that linger in North America.

But look to the bright side. At least credit is not as tight as with solar farms.

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Posted by Mark Boslet

California Solar Market Shows Strength In 1Q, But Financing Hard To Get

April 5, 2010

California’s solar panel market showed solid growth in the first quarter of the year, but financing remained hard to get for many homeowners.

Solar installations were up 43.5 percent in the first quarter in California.

California’s market is the most developed in the U.S. and steady growth here is a signal that other markets, particularly New Jersey and Florida, could follow suit.

According to an analysis of data from the state-funded California Solar Initiative, solar installations in the state rose 43.5 percent in the three months. This comes despite declining state incentives, says FBR Capital Markets analyst Mehdi Hosseini, who crunched the numbers. The greatest growth was in the San Diego area, where installations have lagged northern sections of the state.

And yet, applications for new residential solar systems were soft, increasing just 28 percent. The soft economy and the difficulty with higher credit requirements explain the weakness, says Hosseini. Large commercial projects also suffer from a lack of credit, continuing a trend from last year, he said.

On the other hand, utilities such as PG&E have shown an appetite to finance residential projects, as have some banks, such as U.S. Bank, suggesting a change a foot in financial markets.

SunPower continued to be the largest seller of modules in California. However, China’s SunTech took over the number two spot from Sharp. On the whole, SunPower, Sharp, Japan’s Kyocera, and number one worldwide solar cell maker First Solar all lost share as Chinese and other Asian module makers shifted their focus from Europe and channeled low-price product to California and the U.S. market.

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Posted by Mark Boslet

China Top US In Green Product Awareness

April 2, 2010

Consumers in emerging countries, including China, are more environmentally conscious than those in developed Western nations, a surprise observation that runs contrary to common wisdom.

The finding was the key takeaway in a recent Accenture survey of eight countries, including Germany, France, the United States and India. In all, the willingness to favor green products was greater in less developed economies.

Researchers said the difference appeared to be the result of the greater exposure to pollution and environmental degradation. In developing nations, such as India and China, the immediacy of air and water pollution is leading shoppers to select products with a smaller environmental impact.

“Consumers in difference places have a different perception of the harm to the environment that pollution can cause,” says Kumu Puri, managing director of the consultant’s consumer technology practice. “The numbers are so disparate.”

Overall, 84 percent of consumers in emerging countries said they would be willing to pay a premium for green consumer electronics – televisions, computers and cell phones. Only 34 percent of consumers in mature economies were willing to pay extra for electronic gear that uses less power or is easily recycled.

The highest level of environmental concern was found in China. Ninety-eight percent of consumers were willing to pay a premium. India was second with 84 percent, followed by Malaysia.

Only 43 percent of consumers were willing to shell out extra in the United States and 42 percent in Germany. Almost half of Japanese consumers (49 percent) said they would dig deeper into their wallets.

Puri said the findings uncovered a fundamental difference in green attitudes. What’s more, the difference in China may be a sign of a trend gaining steam. They survey was conducted online, meaning that only the most affluent consumers were able to take part. The rest of the nation may be getting ready to follow suit.

Accenture surveyed 16,000 consumers last fall for the research.

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Posted by Mark Boslet

Top 10 Clean Tech VCs Include Draper Fisher And Braemar

April 1, 2010

The first quarter saw a global venture capital industry more willing to do clean-tech deals.

Venture money going into green energy and energy conservation companies rose 83 percent from last year to $1.9 billion. Investing climbed 29 percent from a weak fourth quarter, especially weak in the U.S.

So who are these more eager investors? Below is a list of top firms and the deals they did. But first, it is worth noting that 81 percent of money originated from firms in North America. Europe and Israel accounted for 14 percent of dollars, China, 4 percent, and India, 1 percent, according to an analysis by the Cleantech Group and Deloitte.

Here are the top 10 firms, the number of deals they did and some of the companies they supported. All but two (Carbon Trust Investments and Good Energies) are based in the U.S.:

*Draper Fisher Jurvetson, 5, Genomatica, Konarka Technologies, Power Assure, Prudent Energy, Scientific Conservation;
*Braemar Energy Ventures, 3, Ciris Energy, Enerkem, Luminus Devices;
*Carbon Trust Investments, 3 , AeroThermal, Marine Current Turbines, Oxsensis;
*Foundation Capital, 3, Azure Power, CalStar Products, Purfresh;
*Good Energies, 3, Agile Energy, Konarka Technologies, Nexamp;
*Intel Capital, 3, Cymbet Corporation, SpectraWatt;
*Nth Power, 3, CalStar Products, Propel Biofuels, Tempronics;
*Rho Ventures, 3, Ciris Energy, Coulomb Technologies, Enerkem;
*Sequoia Capital, 3, Achates Power, Prudent Energy, and;
*VantagePoint Venture Partners, 3, Adura Technologies, Better Place, Ze-gen.

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Posted by Mark Boslet

China To Be Largest Solar Market In Five Years

March 29, 2010

Over production, consolidation, falling prices. The $39 billion solar market is difficult place to navigate.

So when will business conditions find a more even keel? Probably not for a two or three years, according to a new assessments of the troubled industry.

Growth has strengthened after last year’s economic swoon, and prices should decline by about half of 2009’s 40 percent plunge. This should bolster profits at leading companies.

But vendors are not out of the woods. A major shift in demand is underway, eventually unseating Europe as the sales center of the business and lifting China into its place.

The new assessment from Lux Research finds several new unexpected markets are becoming hot places to do business. All have high subsidies: New Jersey, Ontario, the Czech Republic, and several of them suggest a shift in the industry’s center of gravity to East from West.

European markets did relatively well last despite the downturn. Sales should remain solid this year. But saturation and subsidy cuts (in Germany, France and Italy, in particular) will have an impact in 2011.

That’s when the U.S. and China will likely play more commanding roles. California should lead demand in the U.S., but New Jersey will be a bright spot, too, Lux says. New Jersey sales are about one-sixth of those in California.

The China juggernaut is being sparked by a massive increase in government spending and government investments in solar companies. By 2015, China will account for 36 percent of the market compared with Europe’s 34 percent and North America’s 21 percent, says Lux. The industry’s power structure will have changed

“China has decided that is wants to own…the clean-tech industries of tomorrow,” warns a letter 45 House Democrats sent Monday to the Democratic House leadership. “China is pumping $12.6 million every hour into its clean-tech ambitions.”

In the meantime, though, a shakeup is on the way. Supply and demand will come back into balance, but not before weaker companies fail and production lines are mothballed. This process could take two to three years.

And it is already underway On Monday, panel producer SunPower announced it had completed its acquisition of European Sun farm developer SunRay. More deals will follow.

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Posted by Mark Boslet

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