Solar Business from China, China Solar, Solar Industry - SolarFromChina.com

Canadian Solar to sell 3.5 million shares in US

2008-07-20T10:29:00.000+08:00

Canadian Solar Inc. has filed with the Securities and Exchange Commission to sell 3.5 million new common shares in the United States in a public offering, the company said late Monday.

The China-based company also plans to grant its underwriters, Deutsche Bank Securities Inc. and Piper Jaffray & Co., an option to purchase up to 525,000 additional common shares within 30 days of the offering.

Canadian Solar, which designs and manufactures products that convert sunlight into electricity, plans to use the proceeds from the offering for working capital, general corporate purposes and potential future acquisitions.

The company's shares soared $5.99, or 18 percent, to $38.39 Monday after the company raises its revenue outlook for the second quarter. Shares declined $2.39, or 6.2 percent, to $36 in after-hours trading.

LDK Solar signs 10-year deal with Photovoltech

2008-07-20T10:23:00.001+08:00

Chinese solar company LDK Solar Co Ltd on Wednesday said it signed a 10-year contract to supply about 400 megawatts of solar wafers to Belgium-based Photovoltech.

The company said it will deliver the multicrystalline solar wafers -- the principal raw material used in solar cells -- from 2009 through 2018.

It did not disclose the value of the contract but said Photovoltech will make a down payment for a portion of the contract's value.

Shares of LDK closed at $38.39 on the New York Stock Exchange on Tuesday.

clean energy investment grows in China

2008-07-20T10:17:00.001+08:00

Wind power plants are attracting increasing investment in China, according to statistics from the United Nations Environment Programme(UNEP).

The newly released UNEP report, Global Trends in Substantial Energy Investment 2008, shows that China's sustainable energy investment increased by 91 percent in 2007 to a record high 10.8 billion U.S. dollars, most of which has flowed to wind power generating units.

The heavy investment enabled China's wind capacity to double to6 GW last year.

Meanwhile, new investment in sustainable energy surpassed 148.4billion U.S. dollars on a global scale, up 60 percent year on year. Funds in the wind power sector became the biggest contributor to the surge.

"At present, wind and solar power have already stood as the hottest spots for renewable energy investment. Alternatives like hydropower and nuclear energy are also coming into the field," said Zhang Shigang, representative of UNEP China office.

Beijing has taken quick action to catch up with the new global trend in clean energy development. Guanting wind power plant, in suburban Beijing, began full operation here on Saturday, supplying wind generated electricity into China's capital for the first time.

With the last 10 wind power generating units officially certificated by Beijing Electric Power Company, the plant has now installed 43 domestically developed wind power units, with a capacity of 64.5 thousand kW.

The plant is expected to supply 100 million-kWh electricity per year, or 300,000 kWh per day, to meet the daily demand of 100,000 households.

Officials with Guanting called the wind power plant a key project for the success of Green Olympics. Statistics from Guanting shows that the power plant could help cut yearly emission of carbon dioxide by 100 thousand tonnes and save 50 thousand tonnes of coal each year.

China's ET Solar taps into Korea's PV market

2008-07-11T12:05:00.001+08:00

ET Solar Group Corp, a Nanjing-based vertically integrated manufacturer of photovoltaic products, announced Wednesday it has won a deal to supply 500 kilowatt of PV modules to Techwin, a leading plant engineering and environmental technology development company in Korea.

The ordered 500 kilowatt of PV modules will be delivered to Techwin during the third quarter of this year. This deal is ET Solar's first step to tap into the Korean PV market. Earlier it has won supply deals in Italian and French markets, according to Wang Xinghua, CEO and chairman of ET Solar.

In the next few months, ET Solar hopes to forge some new relationships and become a bigger solar equipment supplier in the booming Korean PV market, said Wang. Sang-IK Park, Senior Managing Director of Techwin, said he expected to further cooperate with ET Solar in the future.

ET Solar provides high quality PV modules. It has two manufacturing facilities in Taizhou, China. It has expanded its business to the world's major solar markets, including the U.S., Germany, Italy, Spain, and Korea. Its products include ingots, wafers, modules, and state-of-the-art dual-axis tracking systems.

San Chih announces solar ingot investment in China

2008-07-11T12:04:00.001+08:00

San Chih announces solar ingot investment in China

San Chih Semiconductor, the parent company of Green Energy Technology, has announced it will establish a solar ingot sawing production base in China.

San Chih said it will invest US$7.6 million to establish the plant. Industry sources added in saying that the plant is already under construction in Shandong and should be completed during late 2008.

In related news, San Chih also plans to hold an initial public offering (IPO) in Taiwan and is expected to submit its application in the third quarter. The official offering is expected to take place in the first quarter of 2009.

Funding rises for clean-tech start-ups (Not In China yet)

2008-07-11T12:00:00.002+08:00

Not In China yet, It's U.S.

Despite the slow economy, venture-capital funding of clean-tech start-ups in the USA and abroad is on pace for a record year, according to a report released Tuesday.
In the second quarter, venture funding for nearly 100 biofuel, solar, wind and clean-water start-ups hit a quarterly record of nearly $2 billion — a 58% jump from the same time last year, says the Cleantech Group, a market research firm in San Francisco.

The rise in clean-tech funding comes despite a limping U.S. economy and weak markets for initial public offerings, mergers and acquisitions — the traditional "exit strategies" for entrepreneurs and venture capitalists hoping to sell their stock publicly or sell to a larger company.

"Interest in clean tech continues to show robust growth, despite the impact of economic headwinds and credit market restraints," says John Balbach, managing partner at Cleantech.

Venture firms, start-ups and corporations are pouring more dollars into clean technologies because of higher energy and commodities prices, tightening supplies of oil, tougher regulations on carbon emissions and other economic factors, says Brian Fan, Cleantech's senior director of research.

At the same time, venture capitalists are shifting more of their assets from the traditional sectors of software, medical devices and biotechnology into the clean-tech arena in the USA, Europe, Israel, China and India.

"Investors and entrepreneurs are making two big bets," Fan says. "How do we replace coal as the primary fuel for electricity generation, and how do we replace oil as the primary fuel for transportation?"

Much of the funding is going to young companies working on:

•Solar thermal technology. Start-ups such as eSolar, SkyFuel and BrightSource Energy are building large-scale, solar thermal technology that creates steam to run turbines.

•Second-generation biofuels. Range Fuels, Aurora BioFuels, Greenline Industries and other start-ups are using algae, cellulosic ethanol and materials other than food crops.

Clean-tech investments and technologies are getting more attention mainly from companies in the auto, transport, shipping and petrochemical industries, which are paying higher prices for raw materials, Fan says.

Clean-tech start-ups still have a long way to go, though. Fan estimates it will take five to 15 years before clean-tech products and services are embraced by mainstream corporations and have a large impact on the economy and the environment.

"We're still in the very early stages of the game," Fan says. "But once growth companies prove their technologies, fine-tune their business models and build sales channels to customers, we'll start seeing a steady progression of acquisitions by large companies."

Kunming named China's 'Solar City'

2008-07-04T14:48:00.002+08:00

Kunming has some of the sunniest skies found in any Chinese city. Many visitors to the Spring City wonder why with so many beautiful days each year there aren't more rooftop gardens, cafes or restaurants. One major reason for this is the overwhelming number of Kunming rooftops that are covered with solar water heaters.

A new report by the Worldwatch Institute has declared Kunming to be China's "Solar City", primarily because of the prominence of solar water heaters in the city. The report estimates that more than half of the city uses solar energy to heat its water.

Solar-heated water can be found throughout the city, generally in buildings of 10 stories or lower. Most of the city's newer high-rise apartment buildings and some of the newer high-end residential developments in the city's southwest do not offer solar-heated water.

According to the article, around 30 million households throughout China have solar water heaters - nearly eight percent of those households being located in Kunming. Solar water heaters are becoming increasingly common in other parts of the country because of the growing availability and affordability of solar technology.

Kunming is emerging as a city at the front of China's solar industry - and not just as an end user. Yunnan Normal University is home to the Solar Energy Research Instititute, which was founded in 1971 and is playing an increasingly important role in solar technology research and development.

In recent years the Institute has cooperated with the Ford Foundation via the foundation's Pathways to Higher Education program to expand research, development and use of solar technology throughout Yunnan. The Institute even offers free testing services for Chinese solar companies seeking certification for their products, essentially helping to expedite new products and technologies to the market.

The central government in Beijing is also funding the construction of 30 solar power plants in Yunnan, working through Yunnan Normal's Institute. With a greater number of sunny days than the majority of other Chinese cities, the facilities and manpower at YNU's Solar Energy Research Instititute and a desire by the national and provincial government for cleaner energy alternatives, Kunming is moving toward becoming an alternative energy leader for cities around China and the world.

China's sunshine boy - Shi Zhengrong

2008-07-02T10:02:00.002+08:00

The increasing global focus on renewable energy could not have come at a better time for Dr. Shi Zhengrong, an Australian citizen and Chinese-trained scientist who says he got into solar power by chance.

Shi, 44, is the chief executive of Suntech Power Holdings, one of the new breed of successful domestic China-based companies with global ambitions.

After spending a year at Sydney-based University of New South Wales' renewable energy center in 1988, Shi found himself at a company formed to commercialize the ideas of fellow researchers.

"I never thought this solar business could take off or become commercially viable. I thought I just needed to concentrate on my research and publish papers to do my job as a scientist," Shi told The Associated Press in an interview.

Regular trips back to his homeland China to lecture on solar power coincided with a global push for renewable energy. He says he saw an opportunity to make a difference in the world's energy industries.

"Solar power and other alternative energy is definitely the answer to sustainable development of human life, especially to resolve this global warming issue," Shi says.

The government of Wuxi, a city on Shanghai's western outskirts with ambitions as a high-tech center, put up US$6 million in 2001 to finance Suntech.

Shi bought out his backers and listed his $225 million (sales) company on the NYSE in 2005 where the company's market cap soared to $5.5 billion. Depending on the company's current share price, his worth hovers around US$2 billion.

Suntech, which started with 20 workers, remains headquartered in Wuxi, but now occupies four sites with a total workforce of 3,500.

The company's photovoltaic systems are used in a wide range of applications, including communications and broadcasting, transportation, housing and military.

Currently under construction in Wuxi is the world's largest energy wall, a curtain of solar cells integrated into the city's airport. It's a large-scale advertisement for the technology of Suntech, but currently the biggest market for it's products is Europe.

A major exporter to the rest of the world, Suntech's aim is to reduce the cost of production to a point where China actually uses a far greater share of current sales.

Only about 10 percent of Suntech's 2006 sales of US$599 million were in China, with 80 percent of Suntech's products going to Europe, in particular Germany.

"We use the energy in China to manufacture these things, so we take the blame for using the energy in China then we ship them out of the country," says energy analyst James Brook.

But Shi is working on changing that and is committed to becoming the "lowest cost per watt" provider of photovoltaic solutions to customers worldwide

"When the cost comes down a little bit more, the market will be booming in China," Shi says.

China Focuses on Solar Powers Generation

2008-06-30T15:33:00.001+08:00

China is working on three industry standards for solar power generation, state media reports. The new standards will focus on the "fundamentals, components and materials, generation systems and technological design", Li Aixian, Director of the Sub-Institute of Resource and Environment Standardization of the China National Institute of Standardization, was quoted as saying. So far, there are 15 national standards for the solar water-heating sector. China sees itself as one of the leading manufacturers of photovoltaic cells. However, exports of solar generation products are still subsidised to make them profitable.

China invites world architects to design solar schools for quake areas

2008-06-26T10:07:00.002+08:00

An international architectural design competition for the so-called "Sun-lit Schools" was launched here Wednesday, to seek solutions for solar-fueled school buildings in the countryside.

The contest is co-organized by the International Solar Energy Society (ISES) and the China Renewable Energy Society.

Contestants are required to design "Sun-lit" school buildings with reference to climatic conditions in earthquake-hit areas such as Maerkang and Mianyang, both in Sichuan Province.

Energy-efficient design is revolution for the architecture sector, a major energy consumer, according to Zhong Jishou, the organizing committee executive chairman.

"We want to make a breakthrough in building schools in the quake areas," he said. "Moreover, we also want provide a new model for rebuilding programs in these areas."

Professionals from domestic and overseas architectural institutions, universities and research and manufacturing companies related to solar energy are eligible applicants.

China generates solar-power guidelines

2008-06-26T09:43:00.002+08:00

CHINA is speeding up the development of industry standards to guide solar-power generation, officials and experts told a conference.

The nation is one of the leading manufacturers of photovoltaic cells, which convert sunlight to electricity, although it exports virtually all the products as solar generation is not economic without subsidies from governments or local authorities.

But forming standards has lagged behind the development of the PV cell manufacturing sector, said Li Aixian, director of the Sub-Institute of Resource and Environment Standardization of the China National Institute of Standardization.

China has promulgated 15 national standards for the solar water-heating sector, with another six under development, but there is no related standard yet for solar-power generation, Li said.

The only forms of renewable energy that are competitive in the Chinese mainland without subsidies are solar heaters and hydropower projects.

"Now we have three standards under development for the solar-power generation sector, and a standardization committee will be set up soon," Li told a three-day workshop hosted by US National Institute of Standards and Technology and testing and certification organization Underwriters Laboratories, which concluded yesterday in Shanghai.

The standards for solar generation will cover sectors such as fundamentals, components and materials, generation systems and technological design, Li said.

L.F. Lai, vice president and general manager of UL China, said with rising demand for certification services, Chinese solar-power makers who are unsure of requirements for international certification are turning to the agency for guidance.

CSI delivers BIPV modules for Beijing Olympics

2008-06-23T16:09:00.003+08:00

Canadian Solar Inc. (CSI) has completed the delivery of 66kW of building integrated photovoltaics (BIPV) modules for the lamp posts along the Olympic Boulevard from the "Bird's Nest", the main stadium for the 2008 Beijing Olympics, to the Olympic Square in China.
Over its 25-year operating lifespan, the solar power system, with modules horizontally placed for aesthetic purpose, will generate more than 1,925,000kWh of power and reduce CO2 emissions by more than 2,750 tons. The BIPV project sits right on the axis of Beijing , symbolizing the nation's increasing commitment to sustainable development.

"We are very pleased to have won this contract and be a part of the 2008 Olympics," said Shawn Qu, chairman and CEO of Canadian Solar. "BIPV directly applies solar technology to architecture, which is a fast growing area of solar applications. Given CSI's experience in specialty solar modules and customized solar system design, we are ready to bring our expertise to many other future BIPV projects. China is on its way towards becoming a major solar market, and this contract will help us improve our already strong foothold in the market."

China instituted its "Renewable Energy Law" in 2006, making it mandatory for the State Electric Grid to connect to solar power and pay favorable feed-in tariffs. The execution procedure for this law, however, has yet to be released.

In August 2007, China's National Development and Reform Commission (NDRC) published its national development strategy for renewable energy. According to the strategy, China targets to install 300MW cumulative solar generation capacity by 2010 and 1.8GW by 2020.

China's renewable energy project wins global green energy prize

2008-06-20T10:56:00.002+08:00

China's Renewable Energy Development Project (REDP) was rewarded the Ashden Awards for Sustainable Energy, the world's leading green energy prize, in a final competition taking place here Thursday.

The REDP was launched in 2001 by the National Development and Reform Commission (NDRC) and the World Bank (WB), with international grant financing provided by the Global Environment Facility (GEF), with one of its main aims to promote the installation of photovoltaic (PV) solar home systems in remote off-grid homes in nine western Chinese provinces; to improve the quality of production of PV modules and other system components in China; to provide free information about PV; and to facilitate cooperation between the PV sector in China and the rest of the world.

The REDP has enabled sales of over 402,000 photovoltaic (PV) solar-home systems (SHS) through the REDP-subsidized program since its establishment to rural people who live off the land by tendingyaks or other animals in remote areas of the West and North-West of China.

Around 1.6 million people, who live in tents for at least part of the year and had little access to electricity previously, now have an improved quality of life through better light, communications and entertainment, with the portable systems ideally suited to the lifestyle of these semi-nomadic users who are able to take them with their tents into the summer pasture in the hills.

A typical SHS supplies two lights, a radio and a mobile phone charger, and is supplied in a metal carry-case so that it is portable. Larger systems can power radio-cassettes, TVs and DVD players. For users, the main benefit of the REDP program was brighter, cleaner lighting, for study, work and recreation. Use of radio-cassettes and mobile phones to keep in touch with the outside world is also greatly appreciated.

The REDP program supported the rapid growth of the PV industry in China, and improved the quality of production while keeping costs low. It greatly expanded the market for solar home systems, and supported the development of a network of suppliers, wholesalers and retailers.

The REDP has also supported some PV village systems to provide electricity for public facilities such as, schools, health centers, village satellite telephones, forest protection, road maintaining, climate monitoring and Buddhist temples.

The REDP was one of the six pioneering renewable energy projects from Africa, Asia and Latin America that received a prizeof 20,000 pounds (some 40,000 US dollars) each announced by the Asheden Awards at a ceremony here.

At the ceremony, India's Technology Informatics Design Endeavour (TIDE) was announced to win this year's title "Energy Champion" and a prize of 40,000 pounds (some 80,000 U.S. dollars) while Bangladeshi Grameen Shakti won the 2008 Outstanding Achievement Award and a prize of 15,000 pounds.

The Ashden Awards for Sustainable Energy was founded in 2001 by the Ashden Trust, a Britain-based charity, and the competition is held annually to identify and reward outstanding and innovative projects in Britain and developing countries which provide renewable energy and energy efficiency at a local level.

China's booming PV market: Filled with smoke and fire

2008-06-20T10:50:00.004+08:00

With ten highly prominent initial public offerings (IPOs) racked up already, China's solar energy industry is poised to make a major impact on worldwide polysilicon capacity and solar cell production. However, determining who will succeed among the new firms in the domestic and international market remains highly uncertain as it is likely that at least some publicly announced plans will not materialize into actual projects.

In the last two years, China’s ten IPOs have raised nearly US$2 billion to meet the world’s growing demand for PV-related products and services. The attractiveness of PV to Chinese industrial policy is also understandable due to China’s internal demand for energy, the exciting global economic projections for the solar industry, and the alignment of PV manufacturing needs with China’s current industrial and technology capabilities. Indeed, China’s domestic market for accumulated PV installation is expected to reach 300 MW by 2010, up from only 80 MW accumulated and 10 MW yearly installation in 2006. But the Chinese PV industry is planning to more than meet its domestic needs.

Since 2004, the country’s solar cell production and capacity have reached growth rates from 100%–400% per year, contributing to the global shortage of polysilicon feedstocks. Cell capacity of 4 GW has been announced for this year and, after growing a projected 40% in 2008 so far, China’s solar wafer capacity is also expected to reach 4 GW. However, how much polysilicon will be available and who will be able to obtain it remains extremely uncertain.

Unbalanced polysilicon supply chain

In response to China’s - and global – demand, a swathe of polysilicon production projects have been instigated. Reports of new polysilicon projects in China have appeared regularly in business, technology and trade press over the last year and in 2007, SEMI identified 27 separate polysilicon production projects that had been announced.

Furthermore, the SEMI analysis of the Chinese PV market is currently in progress and these estimates are preliminary. Investment for these projects comes from a variety of sources, especially silicon manufacturers, traditional energy producers and chemical companies. Of these 27 projects, seven projects will rely upon China-based technologies, while six will source technology from Russia, five from the Europe or the US, and four projects will be a partnered combination of Chinese and international technology. These projects will be located throughout China, with the leading regions being the western part of the country, which will see 11 projects, and the Yangtze delta, with four projects.

However, as of December 2007, 20 of these projects had begun construction and of the identified 27 polysilicon projects that have been announced - equating to nearly 30,000 tonnes of polysilicon capacity by the 2008 year-end - SEMI estimates less than 5000 tonnes will actually be produced this year. By 2010, of the 70,000 tonne capacity that has been announced, SEMI projects that only 30,000 tonnes will reach the market. In response to the discrepancy between announced and expected capacity, nearly all Chinese cell and module manufacturers have entered into long-term, expensive, supply contracts, although these contract prices are still much lower than the spot market prices, which were around $400/kg in December 2007.

Nonetheless, the list of new developments in China continues to grow. This month, for example, the DuPont chemicals company announced it will soon begin construction on a PV research centre in Hong Kong and a manufacturing facility in Shenzhen to support ‘the rapidly growing photovoltaic (PV) solar energy industry.’

DuPont expects growth in the photovoltaic market to exceed 30% in each of the next several years and the company has made significant investments in product development and capacity expansions to help keep pace with the demand.

The company says that expansions in Hong Kong and Shenzhen will provide new offerings to serve the amorphous silicon (a-Si) thin film market, adding that the growth rate for thin film is projected to be approximately twice as high as demand for c-Si. DuPont expects this increase to drive specifications for both new and existing products that serve the thin film industry.

‘Through investments in materials, technology development and manufacturing, DuPont is accelerating its ability to deliver innovations that will improve the lifetime and efficiency of photovoltaic modules, and also have enough production capability to help keep pace with the fast rising global demand,’ said David B. Miller, group vice president of DuPont Electronic & Communication Technologies.

An emerging solar equipment industry

In addition to polysilicon, China will also benefit from localized silicon crystal growth. Xi’an University of Technology, Jingyi and Jingyuntong are all qualified vendors for mono crystal ingot growth equipment. Silicon ingot capacity will reach 20,000 tonnes in monocrystalline and nearly 23,000 tonnes in polycrystalline in 2008. In addition to polysilicon, solar grade wafers and solar cells and modules, China is expected to witness the development of an emerging domestic equipment industry, representing the entire production process including thermal processes, plasma etch, wet bench, PECVD and semi-automated screen printing. Supporting equipment and component vendors are also expected to emerge in China.

Indeed, in April Trina Solar announced that five of its key suppliers have signed investment agreements to establish production facilities in the Changzhou Trina Photovoltaic Industrial Park. The suppliers, which include Guangzhou ChienSong Grind Material Co., Ltd., Hubei Feilihua Quartz Glass Co., Ltd., Ltd., Suzhou Good-Ark Electronics Co., Ltd., and a European manufacturer of PV glass, produce products such as reclaimed slurry, crucibles, junction boxes, and low iron glass used in the production of solar PV modules. These companies are targeting total investments of over US$275 million in Changzhou. ‘We are very excited by the advancement of the Changzhou Trina Photovoltaic Industrial Park and the opportunity to form strong partnerships with each of these key suppliers,’ said Jifan Gao, Trina Solar’s Chairman and CEO.

The five suppliers plan to build production facilities in Changzhou and enter into long-term supply agreements with Trina Solar. Their presence in Changzhou will Trina ensure a steady supply of its key supply chain components, while providing the company with lower material costs, among other logistical advantages.

The business model for many of these new solar energy firms, such as Suntech, Yingli and Jing’ao, follows a vertically integrated path. Some companies such as LDK or CSUN, however, are planning to specialize in a limited number of steps in the supply chain.

In a recent survey of Chinese manufacturers by SEMI, 88% of panel suppliers are set to lower or stabilize prices by reducing waste, with 28% saying this will form part of their strategy, a further 27% intend to increase automation, 25% upgrading management systems and a fifth aiming for vertical integration

Chinese PV manufacturers are also garnering recognition on the global stage. For example, based on its recent analysis of the solar energy development market, Frost & Sullivan recognized Suntech with the 2008 Global Frost & Sullivan Company of the Year Award for solar energy development. Each year, Frost & Sullivan presents this award to the company that has demonstrated unparalleled excellence in design and delivery of high-quality PV, in this case for Suntech’s low-cost, high-quality, innovative, and energy-efficient PV cells and modules and system integration solutions.

‘The company’s pioneering success in developing energy-efficient, cost-effective and customizable building integrated photovoltaic (BIPV) systems and crystalline PV cells, and modules for solar energy conversion into electricity are highly commendable,’ says Frost & Sullivan Research Analyst Mary John, adding ‘It has gone beyond just meeting global energy needs to anticipating them as well.’ The company is export focused and ranks among the top three suppliers in the three largest solar markets – Germany, Spain, and the United States.

In conclusion, while the global PV industry is certain to grow over the next several years, considerable uncertainty surrounds the Chinese market. Polysilicon shortages will remain in effect for the next 18 months and sources of future supply in China have not yet reached high confidence levels. Average efficiency of China-based PV technology is approximately 16–17% and top tier players are expected to improve this to 19% by the end of this year. Aside from materials, human resources will always remain limited in such a rapidly expanding industry. There will be a tough year from second half of 2008.

Even so, China’s solar cell capacity is expected to grow by some 68% in 2008 and with polysilicon constraints set to ease in the second half of 2009.

Chinese solar cell manufacturers need to cooperate with equipment & material vendors to improve the productivity and reduce the cost and the whole industry should collaborate to both advocate government policy to support a domestic market and improve competency in cost reductions.

Nonetheless, regardless of the ultimate scope and nature of the future industry, China’s role in the global industry will certainly grow and - like most industrial segments in China - achieve global impact.

China's SMIC plans to make polysilicon

2008-06-20T10:44:00.003+08:00

Semiconductor Manufacturing International Corp, China's biggest contract chip maker, plans to become a maker of polysilicon, a key material for solar energy cells, a source familiar with the situation said on Thursday.

SMIC is in talks with a German company to obtain the necessary technology, said the source, declining to identify the German firm.

The location of SMIC's polysilicon plant has not been decided, but it will be in an area of China where power is relatively cheap, added the source, who declined to be named since an agreement on the technology transfer has not yet been reached.

An SMIC spokesman declined comment.

SMIC, a major maker of memory and logic chips, also manufactures crystalline cells and assembles photovoltaic panels, which are used to produce solar energy.

Several Chinese companies making solar power equipment, such as Suntech Power Holdings Co, are trying to move their operations upstream into production of key materials, in order to cut costs and obtain better control over the supply chain.

Canadian Solar To Light Up 2008 China Olympics

2008-06-13T10:48:00.002+08:00

Canadian Solar says it has completed the delivery of 66 KW of BIPV modules for the lamp posts along the Olympic Boulevard from the "Bird's Nest", the main stadium for the 2008 Olympic Games, to the Olympic Square. This BIPV project sits right on the axis of Beijing, symbolizing the nation's increasing commitment to sustainable development. Over its 25-year operating lifespan, this solar power system, with modules horizontally placed for aesthetic purpose, will still generate more than 1,925,000 Kilowatt hours and reduce CO2 emissions by more than 2750 tons.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar Inc. commented: "We are very pleased to have won this prestigious contract and be a part of the 2008 Olympics. BIPV directly applies solar technology to architecture, which is a fast growing area of solar applications. Given CSI's years of experience in specialty solar modules and customized solar system design, we are ready to bring our expertise to many other future BIPV projects. China is on its way towards becoming a major solar market, and this contract will help us improve our already strong foothold in the market."

China instituted its "Renewable Energy Law" in 2006, making it mandatory for the State Electric Grid to connect to solar power and pay favorable feed- in tariffs. The execution procedure for this law, however, has yet to be released. Additionally, in August 2007, China's National Development & Reform Commission (NDRC) published its national development strategy for renewable energy. According to this strategy, China targets to install 300 MW cumulative solar generation capacity by 2010 and 1.8 GW by 2020.

Yunnan Shilin to Create China's Biggest Solar Power Station

2008-06-13T10:37:00.002+08:00

PowerRating -- Shilin, a developing city in Yunnan Province in Southwest China, will build up the country's biggest solar energy photovoltaic power station with total investment of CNY 3.7 billion.

Yunnan Power Investment New Energy Development Co., Ltd. is the main investor of this project, which is located in Shilin Town, Shilin County and covers a plot of land as large as 173.33 hectares.

The solar power station will have installed capacity of 66 megawatts and will interconnect with the local power grids to supply electricity to users in Yunnan. As a key project on the list of Yunnan Province's 2008 planning, the station is scheduled to kick off construction from October 2008 and complete within 2009.

Photovoltaic power generation is a good utility of solar energy, which is widely believed as a clean energy and is encouraged by the central government of China. Notably, Yunnan is one of the best places in China that is suitable for solar energy development because of its high altitude and strong sunshine.

DuPont to expand Chinese output of solar paste

2008-06-10T18:11:00.002+08:00

DuPont to expand Chinese output of paste used to make photovoltaic cells

DuPont Co. said Monday it will more than double its Chinese production of pastes used by solar cell makers in manufacturing photovoltaic products.

The expanded output of its Solamet pastes at the company's Electronic Materials DuPont Dongguan Ltd. facility is as part of a strategy to more than triple DuPont's sales to the photovoltaic industry. The pastes are used by DuPont customers to increase the efficiency and production of solar cells.

DuPont expects that its sales into photovoltaics within the next five years will be over $1 billion _ up from about $300 million today, the U.S. chemical company said.

Shares fell 1 cent to $46.31 in morning trading

Forum on solar energy applications kicks off in China

2008-06-09T10:57:00.003+08:00

The three-day First West China Solar Photovoltaic Industry and New Energy Development Forum started Friday morning in Shuangliu, a county under the administration of Chengdu, capital of Sichuan Province.

The forum, which has drawn more than 300 government officials, domestic and overseas experts in the solar photovoltaic and new energy sectors and investors, will discuss the development trends of China's solar photovoltaic and new energy sectors, said Shi Dinghuan, chairman of the Chinese Renewable Energy Industries Association.

With the mounting pressure on energy supply and increasing pollution on the environment, the world is paying more attention to the solar energy as a clean energy source.

As a result, the solar photovoltaic industry has become one of the fastest growing energy sectors in the world, and China has plans to become the world's largest market in terms of using solar energy.

Seventeen investment projects were signed at the forum, valued at 14.5 billion yuan (US$2.1 billion) Friday, between the Shuangliu county government and three companies from Sichuan. The projects are in the fields of solar photovoltaic, new energy, machinery, electronics and aviation service.

Shuangliu has attached great importance to development of the solar photovoltaic industry since 2004, and has ranked among the country’s top 100 strongest counties in terms of economic development for seven consecutive years.

Chinese firm intervenes in Nigeria's power crisis

2008-06-06T12:27:00.002+08:00

A Chinese firm, Sky Resources Solar Technology Company, has offered an intervention in solar energy production in Nigeria, as a mean of tackling power crisis in the country.
Speaking with Businessday in Abuja, the international director of the company, Xie Yunghsen said over $200,000 has been invested while over one million dollars would also be injected into the country’s energy sector before the end of the year.

Yunghsen said the goal of the company was in line with the dream of President Musa Yar’Adua to alleviate the power problem in the country, especially rural electrification.

The director, who pointed out that one source or type of energy generation method was not enough to meet the yearnings of the teeming population of Nigeria, said the company had come at the right time to complement the efforts of government in this regard

While noting that " Nigeria is blessed with abundant resources where alternative energy could be generated", Yunghsen wondered why the country should be suffering in the dark by depending solely on one source of energy.

"Nigeria with her abundant gift of sunshine cannot afford to waste wonderful opportunity to generate sufficient, affordable and efficient energy through solar technology," he stressed.

Okechukwu Ezeobina, executive director of the company in Nigeria said the company’s products which include grid-connected inverter, convert the DC power (from solar energy converted by PV modules) to the VAC/220, 50HZ/60HZ sine wave power that will supply power to the local household applications.

According to him the company has signed a pact with some banks, among which are Zenith bank, Intercontinental plc, and Diamond Bank, while discussions are on-going with Bank PHB, Oceanic bank among others to facilitate the projects in Nigeria.

He said the project is taking off soon would some states which include Anambra, Delta, Enugu whose governors are embarking on rural electrification projects

Ezeobi said plans had been concluded to domesticate the technology as some selected technicians from seven states where the projects are to take off soon would be given free training in China on manufacturing and installation.

He was optimistic that the issue of power crisis in the country would soon become a thing of the past when most of the rural communities are connected to solar grid for power supply

China Tianwei plans rights issue for solar projects

2008-06-04T10:53:00.003+08:00

China Tianwei plans rights issue for solar projects

China's Baoding Tianwei Baobian Electric Co Ltd (600550.SS: Quote, Profile, Research) said on Wednesday it plans to issue new stock to shareholders to raise funds for 3.2 billion yuan ($462 million) in solar energy projects and other business requirements.

The company plans to issue up to 210 million additional shares, or up to 1.8 shares for each 10 held, to fund a solar energy panel project, two polysilicon production lines, repayment of bonds and improvement of its cash position.

It added that if the rights issue does not raise enough funds to meet the 3.2 billion yuan requirement, it would secure the remainder from its own funds or bank loans.

It said the offer price for the shares would be determined based on net assets per-share in the most recent results report. The company reported net assets per share of 4.19 yuan in the result for the first quarter.

The company's shares ended at 39.34 yuan on Tuesday. They have risen about 10 percent this year, compared with a one-third drop in Shanghai's benchmark index .SSEC.

China is encouraging solar power production as part of an effort to boost renewable energy and cut its dependence on coal to fuel its booming economy, although tight silicon supplies have hampered solar panel production at small companies.

Several Chinese solar companies such as Suntech Power Co (STP.N: Quote, Profile, Research) and JA Solar Holdings Co Ltd (JASO.O: Quote, Profile, Research) have listed shares on overseas markets. ($1=6.925 Yuan)

Solar Thin Films Partners with China Singyes Holding

2008-06-02T10:30:00.003+08:00

Solar Thin Films has signed a deal with China Singyes Holding to build out 100MW of module manufacturing capacity in China, the company said.

Solar Thin Films is a developer, manufacturer and marketer of manufacturing equipment for the production of "thin-film" amorphous silicon and CIGS photovoltaic modules. As per the deal, the company will supply equipment, technology and general engineering and design support, and retain certain rights outside of China to market and distribute building integrated photovoltaic (BIPV) products.

Solar Thin Films intends to install cost-effective thin-film photovoltaic manufacturing equipment through 2011. While equipment installation is expected to commence in the fourth quarter of 2008, the initial production and sale of BIPV products could begin in 2009.

Peter Lewis, chief executive officer of Solar Thin Films, said the proposed arrangement with China Singyes could be a significant step forward in their goal to become a leader in supplying cost-effective, thin film photovoltaic module manufacturing equipment.

Lewis added that combined with their recently announced $12.3 million order from Grupo Unisolar, to build a 5MW turn-key a-SI Module plant in Spain, it clearly shows the progress they are making. He finds this to be a terrific opportunity for them as China Singyes is one of the country's largest curtain wall engineering companies, with numerous projects inside and outside China, and a demonstrated commitment to expand an already existing presence in the solar field.

Solar Thin Films’ rights to market BIPV output from the new facility outside of China would also open new customer channels and markets for them within the construction industry.

Both the companies are currently minority shareholders and board members of CG Solar, a "thin-film" module manufacturing company located in Weihai, China, that utilizes equipment produced by Solar Thin Films.

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Wuxi, China: Suntech Signs 7 Gigawatt Wafer Agreement

2008-05-28T09:59:00.002+08:00

Wuxi, China: Suntech Signs 7 Gigawatt Wafer Agreement

Suntech Power has signed a definitive thirteen-year silicon wafer supply agreement with a subsidiary of Shunda Holdings Co. Ltd. Under the terms of the supply agreement, Shunda will supply Suntech specified annual volumes of silicon wafers with a total volume of approximately 7GW from 2008 to 2020.

Suntech Power also acquired a minority stake in Shunda Holdings Co. Ltd, from Actis, a leading private equity investor in emerging markets, and Waichun Investment Fund, for a total consideration of $98.9 million.

Dr. Zhengrong Shi, Suntech’s Chairman and CEO, said: “This strategic investment and long term supply agreement will be instrumental in the profitable and rapid growth of both Suntech and Shunda. This is another example of how we can leverage funds raised through our recent convertible notes offering to pursue strategic investments and high volume contracts that strengthen the long term cost structure of our business model. We believe that these transactions accelerate Suntech’s path to grid parity and significantly enhance Suntech’s long term cost competitiveness through better pricing and volume allocations. The multi-year commitment to purchase silicon similarly provides Shunda with the security and visibility to focus on expanding a world-class polysilicon plant.”

Shunda produces silicon ingots and wafers and currently supplies a number of major producers of PV crystalline cells and modules. Shunda is in the final stages of building a polysilicon plant in Yangzhou, Jiangsu province, China with a first phase capacity of 1,500 metric tons. Shunda intends to initiate production of solar grade polysilicon in the third quarter of 2008.

The polysilicon plant will utilize the advanced Siemens production process, with a closed-loop recycling system, and employ equipment and engineering services from industry leading vendors including GT Solar Incorporated.

Dr. Shi remarked, “Located in our home province of Jiangsu, Shunda’s proximity to Suntech will enhance the synergies that we can achieve by integrating polysilicon refinement right through to the manufacture of premium quality solar modules. Shunda’s clear commitment to maintaining the highest environmental standards in the production of polysilicon was another key factor considered in the lead up to this partnership. We look forward to building a close and mutually supportive relationship with Shunda.”

Mr. Yunda Ni, Shunda’s CEO said, “We are delighted to enter this partnership with Suntech, a world leader in the solar industry. This long term contract will provide a stable foundation for Shunda to expand our polysilicon and wafer production facilities and help establish Shunda as a premier manufacturer of both polysilicon and silicon wafers. Our polysilicon plant is designed to employ proven technology and production techniques in order to achieve the highest standards of clean manufacturing. We look forward to making a growing contribution to the development of the solar industry.”

Commenting on Suntech’s improved silicon outlook, Dr. Shi continued, “The relatively small quantities of silicon wafers to be supplied in 2008 from Shunda will replace some of our higher-priced spot market silicon and will make an important contribution towards the completion of our 2008 production target of 530MW. With this long-term agreement, we are able to increase our silicon secured for 2009 by 50MW to 800MW of silicon with an average cost more than 20% below our average cost of silicon in 2007.”

Beijing China 2008 Olympics Solar

2008-05-27T09:18:00.002+08:00

The 2008 Olympics in Beijing, China will be using solar energy to heat the shower water in the Olympic village. This state of the art solar power energy system will provide hot showers for over 10,000 athletes, showing that alternative energy can be a powerful force when harnessed properly.

This solar system, which is to be installed later next year, was donated by the Italian government to the Beijing 2008 Olympics. The Beijing Olympics organizers have committed themselves to making the 2008 games to be environmentally friendly in a multitude of ways. This seems to be a new trend that is emerging in the worldwide sports community. The World Cup proved that alternative energy can go a long way to help reduce our impact on the environment.

Green Energy the first to set up Solar Panel factory in China

2008-05-26T10:54:00.002+08:00

Green Energy Technology Inc. (GET), the largest solar-panel crystal-growing manufacturer in Taiwan, reportedly plans to set up a plant in China, making it the first Taiwan-based company there, according to local Chinese-language economic daily newspaper Economic Daily News (EDN).

EDN said that GET might choose among Liaoning, Shandong, Shanghai to construct its new plant.

Industry insiders pointed out that GET is already an OEM supplier for Suntech Power, the largest solar-cell maker in China, with the plant-building expected to further expand the partnership between the two parties.

Suntech, GET's major customer, expects to ship solar-cell panels with total capacity of 530 MW this year, is currently the largest solar-cell maker in the Great China region with annual revenue of US$1.9 billion to US$2.1 billion.

As exports of poly-silicon products are levied 17% in value-added tax, the insider said, GET's new plant in China could enable material supply directly from Suntech at lower cost to achieve higher margins.

Solar power is one the focal-points in the Chinese central government's 11th five-year economic development plan, suggesting promise in the huge market.

Other Taiwan-based solar-cell-related companies have also set up business in China by establishing production facilities or through re-investments, including Motech Industrial Inc., PanJit International, Wafer Works Corp. etc.

GET, however, will be the first Taiwan-based solar-cell producer in China. Currently GET is the largest solar-cell crystal-growing maker in Taiwan with a maximum annual capacity of 400 MW (megawatt), while the company is actively stepping into thin-film type solar-panel segment with a new product line to be inaugurated in the fourth quarter this year.

China Solar Power Enters Thin Film Solar Cell Market in China

2008-05-23T07:56:00.002+08:00

China Solar Power Enters Thin Film Solar Cell Market in China by Forging Strategic Alliance with ULVAC, Inc. of Japan

China Solar Power (Holdings) Ltd. ("CSP"), a subsidiary of Tano China Capital Management, Inc. (TCCMI), a private equity investment management company focusing on Chinese companies and industries, has entered the thin film solar cell market in China by partnering with ULVAC, Inc. of Japan. ULVAC is a leading solar cell production equipment manufacturer headquartered in Chigasaki, Japan. ULVAC's President and CEO is Mr. Hidenori Suwa. TCCMI's Managing Directors are Messrs. Charles E. Johnson and Chi-Jen Frank Liu.

ULVAC, CSP and its affiliate Tano China Private Equity Fund II signed a Strategic Alliance Agreement in Chigasaki on October 17, 2007. The objective of the Strategic Alliance is to collaborate to enhance ULVAC's position as a leading provider of thin film photovoltaic (PV) production lines worldwide and CSP's position as the leading thin film solar cell manufacturer in China. CSP has selected Yantai, in Shandong Province in Northwest China as the site of its first manufacturing facilities.

The PV Production Lines supplied by ULVAC utilize Generation 5 (G5) sized glass substrates (1100 x 1400 mm) designed for full-scale solar power generation plants. The lines are first of a kind large-sized manufacturing lines to be produced in China for the Chinese and worldwide markets. The plant will initially produce modules based on single junction amorphous silicon (a-Si) technology with an annual capacity of about 50 MW. CSP will quickly transition the production lines to produce tandem junction modules with a higher-efficiency rating. The annual capacity for the line with the higher efficiency module is expected to increase from 50 MW to approximately 64MW in 2010.

The lines will incorporate plasma-enhanced chemical vapor deposition (PE-CVD) equipment, laser scribers, sputtering equipment and encapsulation equipment. ULVAC will install and commission the production lines at CSP's Yantai plant and train CSP's operations personnel.

ULVAC has invested approximately 3,000 million yen ($28 million USD) to set up a new thin film solar cell manufacturing demonstration line utilizing G5 size substrates at its Chigasaki headquarters. ULVAC's demonstration line can manufacture and evaluate a-Si thin film solar cells as well as a-Si/?-c Si tandem structure thin film solar cells stacked with ?-c Si films. The latter generates higher power generation efficiency of at least 9%.

Since the early 1980s, ULVAC has supplied manufacturing equipment for solar cells largely to domestic Japanese companies. Since 1990, Flat Panel Display (FPD) manufacturing equipment technology and in particular TFT-LCD technology, has rapidly evolved and added value to solar cell manufacturing equipment. This has led to greatly increased market demand worldwide for solar cell manufacturing lines. ULVAC has supplied not only the solar cell manufacturing lines but also installation and commissioning of the lines and training for customer personnel.

China Solar Energy Industry Research And Forecast

2008-05-22T10:22:00.004+08:00

China Solar Energy Industry Research And Forecast 2008 ~ 2010

China is the biggest solar water heater producer and consumer in the world. Both her output and consumption of solar water heaters account for over a half of the world total. Research shows that 58.52% of Chinese households have the intention of buying solar water heaters or replacing their gas/electric heaters with solar ones in five years' time. It is estimated that, by 2010, with 70 million square meters more of solar water heaters to be installed before then, the overall area of solar water heaters installed in China will reach 100 million square meters, amounting to a market capacity of 60 billion RMB.

Research and Markets has announced the addition of China Solar Energy Industry Research and Forecast, 2008-2010 to their offering. Solar is one of the fastest growing energy technologies in the global economy and in the cleantech universe. As is envisioned by the U.S. space program, future solar energy power plants will be placed on an orbit of about 6,000 km above the earth, from which electricity will be transmitted back to the earth by way of microwaves or laser beans.

If this plan comes to fruition, utilization of solar energy will no longer be subjected to such forces as the coming of nights and weather changes. Compared with other energies like coal and petroleum, solar energy is infinite and inexhaustible. It is also a type of clean energy that causes no environmental pollution.

Therefore, it will have an immeasurable impact on the future of human race.

Commercial development of solar energy has become a worldwide trend: The European Union, Japan and the United States have focused their energy supply security on the development of renewable energy resources such as solar energy. It is estimated that by 2030 solar energy-generated power will account for over ten percent of total global power supply, and that figure will rise to twenty percent in 2050. Large-scale development and exploitation of solar energy will help it to take up its due market share in energy supply.

Photovoltaic energy production that is combined to the grid is the major means for large-scale and commercial use of solar energy.

China is expected to emerge as one of the greatest solar energy production bases in the world after 2008. Certain fundamental conditions are already in place in China for the large scale development and exploitation of solar energy. These conditions include China's huge potential domestic market and solid resource foundation. Besides, China's solar energy industry has already taken shape, and progress has been made in technological development and innovation.

Solar energy becomes the new hope for China's energy resources: Given the recurrent oil and coal price spikes as well as the power shortages nationwide, energy is increasingly having a bottleneck effect on China's economy. This brings new opportunities for the development of solar energy.

The cost of generating electricity out of solar energy will come close to or even become lower than that of power generation by coal in the near future, making it possible for China to conduct vigorous development of solar energy. China's solar energy industry, having been nurtured in the domestic market for over ten years, is fully launched by now, and it has gained momentum for rapid development in the future.

China is the biggest solar water heater producer and consumer in the world. Both her output and consumption of solar water heaters account for over a half of the world total. Research shows that 58.52% of Chinese households have the intention of buying solar water heaters or replacing their gas/electric heaters with solar ones in five years' time. It is estimated that, by 2010, with 70 million square meters more of solar water heaters to be installed before then, the overall area of solar water heaters installed in China will reach 100 million square meters, amounting to a market capacity of 60 billion RMB.

The annual growth rate in the coming years will be maintained at 20 to 30 percent, which means that solar energy industry in China will become a genuine green "gold mine." If a quarter of the Chinese population use solar water heaters, China's solar energy market in 2020 will be projected to reach 270 million square meters. And this is the target the Chinese government is working at. Investment in solar water heater industry is worthwhile.

Our solar water heater industry starts with a very thin basis, but it has been expanding ever since its launch. Currently, the sales volume of solar water heaters in China is ten times that in Europe. Whether it is measured in terms of output or number of solar water heaters sold domestically, China ranks No. 1 in the world. Solar water heaters are also being applied and adapted to a wider range of uses and purposes in our country, so solar energy has a very bright future here.

At present, there are about 28,000 villages in China, or 7 million households and 30 million rural people, that have not yet had access to electricity, and 60% of the counties that have access are in great shortage of it. Most of these powerless areas, rich in solar energy resources, possess a huge market potential for photovoltaic energy production. Such being the case, Chinese government plans to exploit the rich photovoltaic energy and provide electricity for remote areas before 2010. Since 2005, China has begun large-scale construction of desert power plants and rooftop photovoltaic systems combined to the grid.

The market share of photovoltaic energy is expected to grow from 4 percent in 2003 to 20 percent in 2010 and to 60 percent in 2020. Most solar energy enterprises pursue the mode of photovoltaic electricity generation, which is one of the fastest growing industries in the world. It is also the industry that generates the greatest profits among all renewable resource industries. Solar cell industry investment trends: Currently, China's solar energy industry has already developed a power generation capacity of 15 MW. Meanwhile, quite solid a foundation has also been laid for the photovoltaic electricity generation industry.

Though the cost of photovoltaic generated electricity is still higher than coal-generated electricity, it is nevertheless an advantage in remote areas. As it does not incur the cost of fixing power wires in these areas, small solar energy generators are comparably cheaper and more applicable. Herein lies the reason for both the popularity and prosperity of solar cell industry in recent years.

Be it the photovoltaic industry or the solar water heater industry, the future trend will be the development of the technique of integrating solar energy utilization with construction.

The solar energy power generation industry is free from the worries involved in sales. The world solar energy market is obviously a seller's market, where demand is much larger than the supply. It is reported that major Chinese solar energy enterprises including Taiwan's Motech, Wuxi's Suntech Power, Yingli Green Energy and Sunoasis from Xinjiang Uigur Autonomous Region have been running at full capacity, receiving orders that have to be put off well after 2007.

China Leads the Way in Alternative-Energy (Solar) Hardware

2008-05-20T10:58:00.002+08:00

Who's the volume dealer in alternative-energy hardware? If you said choking, smoking, coal-toking China, give yourself a carbon credit.

Consider solar cells, the least carbon-intensive option after nuclear, wind, and biomass, according to an analysis by the International Atomic Energy Agency. In 2007, photovoltaic factories in the People's Republic tripled production, grabbing 35 percent of the global market and making China the world's number one producer. How about rechargeable lithium-ion batteries, critical for superefficient electric vehicles? Chinese manufacturers will soon rule that world, too. Windmills? "Prepare for the onslaught of relatively inexpensive Chinese turbines," says Steve Sawyer, head of the Global Wind Energy Council. His forecast: China will produce enough gear to generate 10 gigawatts of power annually by 2010 — more than half the capacity that the whole world installed in 2007.

China has three big reasons for jumping feetfirst into the carbon fight. Obviously, there's the threat of climate change — flooding in China's coastal cities, drought in the country's interior. Second, there's political instability: Air and water pollution is already a flash point for public protests. And then there's the burgeoning export market for green products stamped made in china.

Will renovating the planet spur the first wave of homegrown Chinese tech innovation? Jeff Immelt, CEO of General Electric, thinks so. "China has as much or more at stake than anyone," he said at a recent corporate summit. "Solar energy, carbon sequestration — we're going to be blown away by China's progress over the next couple of decades." If only they could clean up Beijing's air in time for the summer Olympics.

China Solar & Clean Energy, Inc. Announces First Quarter 2008 Financial Results

2008-05-17T13:07:00.004+08:00

First Quarter Revenue Increases 177.1% to $8.3 million -- First Quarter Net Income Increases 41.5% to 0.4 million

China Solar & Clean Energy, Inc. (OTC Bulletin Board: CSOL) (''CSOL''), a premier manufacturer and distributor of solar water heaters, renewable energy solutions, and space heating devices in the People's Republic of China (the "PRC"), today announced its results for the first quarter of 2008 which ended March 31, 2008.

Sales for the first quarter of 2008 increased 177.1% to $8.3 million compared to $3 million for the same quarter in 2007. The significant increase was primarily due to the increase in higher margin products such as energy saving projects and heat pipe related products from the acquisition of Tianjin Huaneng which contributed approximately $5.5 million in revenues for the first quarter versus none in the year ago period. Solar Heater and Boiler division contributed $2.8 million, a decrease of 5.5%, from approximately $3 million in first quarter 2007, which resulted from lower sales volume and prices caused by increased competition and Chinese New Year Holiday. Shenzhen Pengsangpu did not contribute as the effective acquisition date was April 1, 2008.

Gross profit for the three months ended March 31, 2008 was $2.5 million, an increase of approximately 228.7% from the first quarter of 2007. Gross margins were 29.6% compared to 24.9% for the first quarter of 2008 and 2007 respectively. The improvement was a result of product and systems sales related to the acquisition of Tianjin Huaneng.

Operating expenses for the three months ended March 31, 2008 increased 164.8% to $1.3 million from $0.4 million in the same period in 2007, while selling, general and administration expenses for the period increased to approximately $1.1 million from approximately $0.44 million in the first quarter of 2007. The increase was primarily due to expenses directly related to Tianjin Huaneng which were not present in the first quarter of 2007, in addition to increased expenses for overall marketing, which includes costs for advertisement, promotion and sales force related expenses.

Operating income for the first quarter of 2008 totaled $1.2 million compared to $0.3 million for the same period in 2007, representing a 339.2% increase. Operating margins were 14.5% and 9.1% for the first quarter of 2008 and 2007, respectively. Taxes paid during the quarter were $0.34 million compared to none in the year ago period. The company paid $0.5 million in minority interests to the 49% owners of Tianjin Huaneng Energy Equipment Company which was not present in the first quarter of 2007. Net income for the 2008 first quarter increased 41.5% to $0.4 million, representing earnings of $.03 per diluted share, from $0.3 million in net income, or $.04 per diluted share during the first quarter of 2007. Calculations were based utilizing 15.3 million and 7.0 million diluted shares outstanding respectively.

During the quarter, the Company issued approximately 4.7 million shares of common stock at a purchase price of $2.40 per share, for gross proceeds of approximately $11.3 million. Additionally, the Company deposited 2 million shares of common stock (''Make Good Shares'') into escrow account for its Make Good Targets of $4.8 million and $8 million in after-tax net income for 2008 and 2009, respectively.

''We are pleased with our results despite the typical seasonal softness due to the Chinese New Year and extremely cold weather. Demand for Tianjin Huaneng energy saving equipment continued to be robust and was the principal driver in helping us achieve a 177.1% increase in revenues,'' commented Mr. Deli Du, President and Chief Executive Officer. ''During the quarter, we made further investments in marketing and advertising which have enabled us to gain additional market share, while helping to propagate our brand recognition which we believe will facilitate future growth. While our margins continue to be impacted by competition and pricing pressure in our core solar hot water heater market, our emphasis on Tianjin Huaneng's high margin proprietary energy saving boilers and environmental protection equipment has improved the Company's overall profitability. In addition, our new flat plate collector production line is fully online, something which we believe will further improve our margins and profitability through enhanced production efficiencies,'' continued Mr. Du.

Balance Sheet and Cash Flow Discussion

The Company had $10.7 million and $5.5 million in cash and equivalents as of March 31, 2008 and December 31, 2007 respectively. The increase in cash was primarily due to the receipt of net proceeds of approximately $10 million from the private placement in March. Inventory increased to $4.1 million as of March 31, 2008, from $3.9 million on December 31, 2007, principally due to increased production preparing for peak season in second quarter. Accounts receivable decreased slightly to $7.1 million as of March 31, 2008, from $7.5 million as of December 31, 2008 due to the improved collection efforts.

''We expect the acquisition of Shenzhen PengSangPu, which had an effective acquisition date of March 31, 2008, will be a significant growth driver for the balance of this year as contributions begin during the second quarter of 2008. PengSang's proprietary products, engineering expertise and strong customer base, which includes larger commercial and government buildings, will create a number of synergies while complementing our core product portfolio and extending our footprint into the coveted Southern China market. The acquisition was completed for an estimated aggregate purchase price of $7.0 million in cash and stock and make good provisions were a component.''

''I would like to use this opportunity to welcome Mr. Jacky Yang who recently joined China Solar as the acting CFO. He brings extensive corporate finance experience in several industries and will be asset as we continue to grow our business. Additionally, I want to add that the recent earthquake which hit the Sichuan Province is not anticipated to affect our production or sales during 2008,'' Mr. Du concluded.

About China Solar & Clean Energy Solutions, Inc.

China Solar & Clean Energy Solutions, Inc. operates through its wholly owned subsidiaries Bazhou Deli Solar Energy Heating Co. Ltd. ("Deli Solar (Bazhou)"), Beijing Deli Solar Technology Development Co., Ltd. and its 51% ownership in Tianjin Huaneng Group, all located in the PRC. The Company manufactures and distributes hot water and space heating devices to customers in the PRC, in addition to waste heat recovery systems. For more information, please visit http://www.cn-sce.com .

Green Energy to progress with solar wafer plant investment in China

2008-05-15T16:18:00.002+08:00

Green Energy Technology will soon host a shareholders meeting to discuss its investment plans in China. If shareholders approve, the solar wafer maker is likely to establish a plant at Shangdong, China, according to industry sources.

Green Energy will hold a shareholders meeting on May 16 to discuss its future deployment in China. Company president Hurlon Lin indicated that the company will likely be more aggressive in making investments across the strait after the meeting, but declined to reveal more details.

Green Energy has spent about a year assessing potential investment opportunities in various cities in China, including Shangdong, Shanghai and Jinzhou, with Shangdong as the most likely location, according to industry sources. It is believed that Green Energy to start with solar ingot slicing before investing in ingot production, since the company is short of ingot slicing capacity. Currently about 30-40% of its solar wafer slicing work is outsourced to third parties, the sources explained. They added in saying that Green Energy is experienced in ingot slicing, with gross margin from the segment stable at 30-35%.

Industry players generally feel Green Energy has chosen a good time to extend into China as the China government is offering favorable incentives to investors in order to aggressively grow the country's solar industry.

China has become the world's 3rd largest country in terms of solar cell output and production capacity

2008-05-14T11:21:00.002+08:00

China has become the world's 3rd largest country in terms of solar cell output and production capacity

In 2007, solar heater output and population both grew steadily. Meanwhile, China's solar energy photovoltaic industry also continued its fast growth of 2006.

After 20 years of development, the solar heaters industry has entered a mature stage. But, the domestic and international demand has not been met. With the fast growth of the real estate industry in the past few years and breakthroughs in integrated buildings and solar heat technologies, the industry is expected to maintain its current momentum of stable growth.

In the solar photovoltaic generation field, China has become the world's 3rd largest country in terms of solar cell output and production capacity. There is a trend of shift to China of the various links of the industry, from multiple crystal silicon to solar cell components. Growth in investment and financing has reached a crazy level.

In the face of competitions as well as market changes and challenges, the 2007-2008 Annual Report on the Development of China's Solar Energy Industry released by our team will help enterprises, investors and industry persons to more accurately grasp the growth pattern of China's solar energy industry, gain a more profound understanding of the prospects for industry growth and make wise investment decisions-

More in-depth and detailed analysis of industry situation. Based on statistics on the Chinese and international solar energy industry and from the aspects of industrial environment, industry size, industry structure and profit level, our team performs an in-depth analysis of the development situation and basic characteristics of China's solar energy industry. It also provide a key introduction to major countries of solar energy applications (Germany, Japan and USA) and to major regions of solar energy applications in China (Beijing, Tibet, Guangdong and Jiangsu), thus presenting readers with the basic infromaiton of he solar energy industry.

More scientific and comprehensive forecast for future growth. Based on an in-depth analysis of current industry situation and through research on various factors affecting the industry (relevant policies and application conditions for solar energy), future room for industry growth, technology evolution and innovation ability, our team makes scientific and reliable forecast and quantitative analysis of the future trend of the solar energy industry.

More scientific and comprehensive recommendations for industry investment. Based on an analysis of the current status of applications in the solar energy industry and relevant policies, our team makes recommendations to the government. Through analyzing the competition pattern, technology development directions and imports and exports in China's solar energy industry, our team also makes recommendations to manufacturers. In relation to the current status of investment in China's solar energy industry and its forecast for future room for industry growth, our team finally offers recommendations to investors.

China's Solar Stocks Soar

2008-05-14T10:57:00.002+08:00

Chinese solar stocks spiked on higher-than-average volume today following earnings announcements from many industry players. JA Solar Holdings (NDAQ: JASO), China Sunergy Company (NDAQ: CSUN), ReneSola (NYSE:SOL), and Trina Solar (NYSE: TSL) are just four Chinese solar companies that rose today as several companies reported strong earnings.

Solar companies are experiencing strong growth as the move towards alternative energies continues. Companies in the United States have soared to stratospheric valuations amid the boom, but investors are just now discovering the opportunities abroad. Chinese solar manufacturers make sense to investors for several reasons.

The "Made in China" label appears on many goods in the United States simply because their products are cheaper. The costs of building almost anything in China is lower because labor is cheap and materials have reached economies of scale. Many Chinese firms are now jumping on the solar bandwagon now too.

Chinese solar manufacturers are much cheaper than their western counterparts too. Companies like Trina Solar and ReneSola are trading at just 30x earnings compared to U.S. companies like SunPower Corporation (NDAQ: SPWR) and First Solar, Inc. (NDAQ: FSLR) that trade with a multiple closer to 361x and 117x, respectively.

These U.S. players may be involved integrated manufacturers and utilize newer technologies, but Chinese companies have a habit of quickly copying the competition. Ultimately, the lower costs of Chinese solar technologies will eclipse that of American firms and take at least some market share away.

In the end, Chinese solar stocks represent a great alternative for U.S. investors looking for something cheaper. The growth rates for these firms should continue to rise along with solar demand while they will likely increase their market share as more and more domestic solar vendors choose the cheaper Chinese alternatives.

Hoku(U.S.) and Suntech(China) Announce Amended Polysilicon Supply Contract - Solar

2008-05-13T17:59:00.002+08:00

Hoku(U.S.) and Suntech(China) Announce Amended Polysilicon Supply Contract - Solar

Term Fixed at 10 Years; Financing Deadline Extended to December 31, 2008

Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. established to manufacture and sell polysilicon for the solar market, and Suntech Power Holdings Co., Ltd. one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that they have amended their polysilicon supply contract to confirm the ten-year term of the contract, which was previously subject to a mutual right for either party to unilaterally reduce the term to seven years. In addition, pursuant to the amendment, Hoku Materials has been granted a right of first refusal to deliver all or any portion of the polysilicon in the form of wafers on commercial terms that are no less favorable to Suntech than it would otherwise be able to obtain. Total amounts that may be payable to Hoku Materials under the ten-year term of the contract are approximately $678 million, plus amounts payable for excess shipments that may be delivered in calendar year 2009.

Suntech and Hoku Materials further agreed to extend the date when either party may terminate the supply agreement if Hoku Materials is unable to complete the financing for its polysilicon production plant until December 31, 2008, and to reduce the financing milestone to $75 million, including the $25 million that was already raised by Hoku Scientific's sale of common stock in February 2008. Prior to the amendment, either Hoku Materials or Suntech had the right to terminate the supply agreement if Hoku Materials was unable to secure an aggregate of $100 million on or before May 31, 2008, to finance the procurement and construction of its planned polysilicon plant in Pocatello, Idaho.

Suntech also agreed to use its best efforts to obtain trichlorosilane, or TCS, in 2008 and 2009 for Hoku Materials's use at its production facility. Hoku Materials plans to build on-site TCS production facilities as part of its polysilicon plant, which are expected to be complete in 2009; however, until Hoku Materials's TCS plant is complete, TCS from a third party will enable the commencement of production faster than otherwise possible. If Suntech is able to obtain TCS for Hoku Materials, then Hoku Materials will allocate to Suntech additional polysilicon production output in 2009 that is in excess of Hoku Materials's pre-existing 2009 customer commitments.
"These amendments reflect our mutual commitment to strengthening the long-term relationship between Hoku and Suntech," said Dustin Shindo, Chairman and Chief Executive Officer of Hoku Scientific. "Locking-in the term at 10 years gives us greater certainty in planning our long-term operations, while Suntech's commitment to help us obtain TCS in 2008 and 2009 could improve our near-term operating results. Allowing us a right of first refusal to deliver wafers gives us the flexibility to vertically integrate a downstream process if we decide to pursue that strategy in the future."

Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "Hoku has made tremendous progress over the past year, and we are pleased to strengthen our relationship with them. Confirming the term at ten years gives Suntech more visibility on long-term polysilicon pricing that will further our goal of achieving grid parity in solar."

2007 PV Solar Figures Reviewed: PV production in China grew rapidly

2008-05-12T08:01:00.003+08:00

Global production of photovoltaic (PV) solar cells increased 51% in 2007 to 3,733 megawatts, according to a review of industry figures by WorldWatch Institute.

Other highlights include:

- Led by Germany's Q-Cells AG (QCE.DE), Europe surpassed Japan in volume of PV manufacturing.
- Fueled by a generous feed-in tariff, Germany remained the top installer of PV, accounting for roughly half the global market. Spain ranked second
- PV production in China grew rapidly, making the country the second largest producer, accounting for 22% of global production.
- PV cell production rose 48% in the U.S. to a total of 266 MW--representing only 7% of global supply.
- Italy, France, Portugal, South Korea and India are emerging on the international solar market.
- Forecasts for the year ahead are centered around an increasing polysilicon supply, expected to become available in the third quarter, and analysts are predicting price parity with conventional power in two to seven years.

Yingli(China)Green Energy Signs Sales Contract with IBC(Bavaria) Solar AG

2008-05-10T14:01:00.000+08:00

Yingli (China) Green Energy Holding Company Limited (NYSE: YGE) (“Yingli Green Energy” or the “Company”), one of the world's leading vertically integrated photovoltaic (“PV”) product manufacturers, today announced that it has entered into a sales contract with IBC Solar AG (“IBC”), one of the leading specialists in PV systems worldwide. Under the terms of the contract, Yingli Green Energy is expected to supply a minimum of 35 MW of PV modules to IBC from May 2008 to December 2008. In addition, IBC has an option to purchase a maximum of another 45 MW of PV modules from Yingli Green Energy in 2009.

“I believe this contract will further support the cooperation and deepen the relationship between our two companies,” commented Thomas C. Sauer, CEO of IBC. “Yingli Green Energy’s top quality products, brand name and solid track record have been a major reason behind our purchases from them in the past, and now we are pleased to significantly expand our relationship in the future.”

“I am very pleased to announce this important contract which represents another milestone in our ongoing relationship with IBC,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “I believe this sales contract marks our continued success in expanding in Germany, which is one of the most important PV markets in the world, and further demonstrates that our product quality and brand name have been recognized by one of the leading PV system specialists in the market. In addition, IBC’s broad reach makes them a particularly desirable partner. We remain deeply committed to solidifying our established customer relationships and we continue our efforts to promote our quality products and brand name to both existing and potential customers. I believe our efforts will further strengthen our position as one of the world’s leading vertically integrated PV product manufacturers.”

About IBC SOLAR AG

IBC SOLAR AG was founded in 1982 and since then has been active exclusively in the photovoltaic sector. Headquartered in Bavaria, the company was recognised as one of the 50 fastest growing companies in Bavaria in 2006. The IBC group and its subsidiaries in Europe, Asia and America provide markets worldwide with high performance photovoltaic systems of all sizes, from house roofs to major turnkey solar projects.

About Yingli Green Energy

Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of the limited numbers of large-scale PV companies in the world to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States. For more information, please visit www.yinglisolar.com.

The First solar PV building in China

2008-05-09T14:00:00.000+08:00

The main structure of the 25-storeyed mansion, China's first solar PV building, was lately completed in the city of Baoding in China's northern Hebei Province.

The building will serve as a landmark for the country's new energy and energy equipment industry base. By applying large-sized breathable glass screen to its outside appearance, the building can generate 0.3 megavolts of electricity, tantamount to a mini-sized power plant, which will not only satisfy the needs of electric lighting for the building, but can be annexed with the power grid for electricity generation.

http://www.solarfromchina.com

U.S. chemical maker DuPont plans China facilities for solar energy

2008-05-07T16:32:00.000+08:00

DuPont Co (U.S. chemical maker) said on Tuesday it plans to open a research and development center and a manufacturing facility in China to cater to the growing demands of the solar energy industry.

The research and development facility will be based in Hong Kong, while the plant will be in Shenzhen.

The company expects growth in the photovoltaic market to exceed 30 percent each year over the next several years. DuPont has made significant investments in product development and capacity expansions to help keep pace.

The R&D center will likely begin operations in 2009. There is no set date for the opening of the Shenzhen plant.

The expansions in Hong Kong and Shenzhen will provide new offerings to serve the amorphous silicon thin film market. These thin films are used in the production of photovoltaic modules.

"DuPont is accelerating its ability to deliver innovations that will improve the lifetime and efficiency of photovoltaic modules," said David Miller, group vice president of DuPont's electronic & communication technologies segment.

In a statement, Miller said the facilities will also help the company keep pace with the fast-rising global demand from the sector.

DuPont also announced it plans to invest about $150 million to expand and upgrade its facilities that manufacture ethylene copolymers used by the packaging, automotive and solar cell industries.

from http://www.solarfromchina.com

Solar Power Industry in China

2008-05-06T12:10:00.000+08:00

In 2007 Shandong Province established a 2.133 billion Yuan fund to support energy conservation and reduction of emissions. From that fund the provincial government will allocate funds to subsidize hotels, schools and other establishments to build solar hot water supply systems. Shandong Province now has more than 100 companies that are involved with renewable energy and those companies produce more than 3 billion Yuan/annum in revenue. To date a total of 15 million square meters of buildings have a solar hot water heating system.

In remarks made on September 18, 2007 at the “2007 World Solar Energy Conference”, Shi Dinghuan, the Chairman of the China Renewable Energy Institute and a member of the Counselor’s Office of the State Council, said that after 2020 China will experience scale development of solar power. Nearly 1000 individuals from more than sixty countries attended the conference. In his remarks Mr. Shi called on greater cooperation between developed countries and developing countries, especially in the realm of technology transfer of key renewable energy technologies.

Construction began on August 18, 2007 on a 12 billion Yuan, 15,000 MT solar energy grade silicon project in Xinyu city, Jiangxi Province. The first phase of the project, which will total 6000 MT of polycrystalline silicon materials, is expected to be completed and in operation by the end of 2008; the entire project will be open by 2009. The project is being developed by Jiangxi Saiwei LDK Solar Energy High Technology Co., Ltd., which went public on the NYSE on June 1, 2007, raising $469 million U.S.D.

According to Shi Dinghuan, the chairman of the board of the China Renewable Energy Society, solar hot water appliances already cover 90 million square meters of buildings in China and serve 40 million households and 200 million people. China is now the world’s largest producer and user of solar hot water appliances.

On August 8, 2007 the 200 million Yuan, 25MW solar cells project of the Tri-crystalline Silicon Products Manufacturing Co., Ltd. formally set up in Quanzhou, Fujian Province. The project will be manufacturing mono-crystalline solar cells by 2008.

In early August 2007 a group of Chinese solar module manufacturers were having preliminary discussions regarding forming a national photovoltaic industry alliance. The motivation for the discussions included the desire to contain what was referred to as “disorderly, pernicious competition” among companies in the solar energy module industry. The background to these discussions is the rapid growth of the domestic solar industry in China over the past 1-2 years, fueled by a great deal of capital which perceived a new market opportunity. Being near the tail end of the solar industry production chain, the solar module industry doesn’t have a great deal of technology that it contributes, which means that there are fewer barriers to entry than in the solar cells or silicon industries. According to one industry insider by the end of 2006 there were approximately 200 solar module manufacturers in China and because there is a lot of capital that is available and which likes this sector, there will be another increase in the number of solar module manufacturers in China in 2007. Solar module manufacturers are competing to increase the scale of their operations to reduce costs; in this manner they see the way to overcome the price competition which has ensued as a consequence of so many new entrants into the industry. One example is the Wuxi (Jiangsu Province) Guofei Green Energy Co., Ltd. which had 10MW of capacity in 2006, which will increase to 30MW in 2007 and further increase to 40-50MW in 2008; the company is increasing capacity despite the fact that it sold only 6MW of solar modules in 2006. The price of modules has declined over the past two years. In 2005 the price was $35 U.S.D. to $38 U.S.D. per watt; as of the beginning of 2007 the price had dropped to $32 U.S.D. per watt and it is expected that the price will drop again by the end of 2007 to $30 U.S.D. per watt. Consequently, gross profits at most profitable solar module manufacturers are only 10%. The solar cell manufacturers, which are the upstream suppliers of the solar module industry, are also experiencing an increase in production capacity and fairly robust competition. The suppliers of the solar cell manufacturers, which are the polycrystalline silicon manufacturers, are not reducing prices as the supply of silicon is insufficient at present to address the current demand; the U.S. and Japan are the principal suppliers of polycrystalline silicon. One such example of a solar cell manufacturer is the China Power (Nanjing) Photovoltaic Co., Ltd., which went public on NASDAQ in May 2007. Beginning in August 2004 when the company started-up it had five production lines producing solar cells. By the end of 2006 the company had 6 production lines producing a total of 192MW of solar cells; by the end of 2008 the company expects to have expanded further to a total of 12 production lines and be producing 390MW of solar cells. Industry experts believe that the solar module manufacturers will have their toughest time in 2008. By 2009 the price of polycrystalline silicon will have moderated somewhat and by 2010 as China’s output of polycrystalline silicon grows the price will decrease further. By 2010 China’s domestic polycrystalline silicon output capacity will reach 60,000 to 100,000 tpy and international suppliers will provide another 100,000 tpy; in 2010 the demand for polycrystalline silicon will be only 100,000 tpy.

GT Solar Incorporated of Merrimack, New Hampshire entered into a $171 million U.S.D. supply agreement with Glory Silicon Energy Co., Ltd. of Zhenjiang, Jiangsu Province to sell its DSS450 furnaces for the production of multi-crystalline silicon ingots. This order will equip what will be one of the world’s largest silicon wafer factories, having approximately 1500MW per annum of capacity.

More than 90% of regions in China enjoy as much as 4500 mega-joules per square meter of irradiation from the sun. More than 2/3rd of China’s regions have in excess of 2200 hours/year of the sun’s exposure. If only 1% of the sun’s exposure on China were converted into power, all of China’s energy requirements for the year would be satisfied.