Weekly Investor Round Up
05/08/2009
SustainableBusiness.com News
Several major players in alternative energy made moves to raise cash to help them weather the prolonged downturn in the global economy.
At the end of the week U.S. Solar company Sunpower (Nasdaq: SPWRA; SPWRB) announced plans to sell nine million shares of common stock and $175 million in convertible debt in an attempt to raise about $400 million dollars. The company will use the proceeds for general corporate purposes, including working capital, and it said it will evaluate potential acquisitions also. The equity offering follows the release of a 1Q report in which SunPower posted an unexpected net loss of about $5 million.
Danish wind turbine maker Vestas (VWS.CO) also announced that it sold 18.5 million new shares, raising 8.98 billion Danish crowns (US$1.05 billion). However, Vestas had a much better 1Q than SunPower, posting a 70% increase in profits to EUR 56 million (US$74.5 million).Nonetheless, the company said demand in Northern Europe has lessened, causing the firm to cut 1,900 jobs.
Germany's Q-Cells (QCE.DE) took a different route to raising funds. The solar cell maker sold its 17% stake in Norwegian solar wafer company Renewable Energy Corporation (REC.OL). The two companies are part of the joint solar venture Sovello AG. Q-Cells said it raised $706 million from the sale, sending its stock upwards, but analysts disagreed as to whether or not the sale was a good long-term decision for Q-Cells, which is the world's largest solar cell producer.
In another big story, Ford Motor Company (NYSE: F) said it will invest $550 million to transform its Michigan Assembly Plant to build a new battery-electric version of its small Focus vehicle for the North American market, as well as "next-generation" gasoline versions.The plant previously produced the beheamoth Ford Expedition SUV. Ford said the plant will have much greater flexibility to build a variety of vehicles and that it has worked with the United Auto Workers union develop improved operating practices. Ford said the new gasoline-powered Focus will start rolling off the assembly line next year, and the battery-electric version is expected in 2011.
Germany's Siemens (NYSE: SI) has selected Hutchinson, Kansas, for a new production facility to supply components to the growing wind power market in the U.S. The 300,000-square-foot facility and an adjacent service and repair facility will be built in Reno County, which is located northwest of Wichita. The operation is expected to create 400 jobs and will be the first major wind turbine factory in Kansas. The factory will have capacity to build 650 nacelles a year. The nacelle is the structure that houses all of the components that generate electricity, including the gearbox, drive train and control electronics.
Solyndra, a manufacturer of rooftop photovoltaic (PV) systems, signed a new long-term sales contract with solar integrator SunConnex B.V., based in Amsterdam. The contract is worth up to $189 million and extends through 2013. The deal brings Solyndra's announced contractual backlog to nearly $1.7 billion. Solyndra's manufactures solar panels at two facilities in California. In March, The U.S. Department of Energy offered the first renewable energy loan guarantee--worth $535 million--to Solyndra.
Solyndra burst onto the solar scene last fall, and this week another California solar company emerged from stealth operations. Skyline Solar, based in Mountain View, California, manufactures concentrating solar photovoltaic systems for commercial, industrial, government and utility markets. The company calls its systems HGS (for High Gain Solar). The company built a demonstration plant for the Santa Clara Valley Transportation Authority. And it said it has received $24.6 million in Series A Venture Financing from New Enterprise Associates (NEA) and several other strategic investors. Skyline Solar was also selected as one of six solar photovoltaic technology companies to receive funding under the Department of Energy's Solar America Initiative.Skyline says under optimum conditions its HGS systems can deliver ten times more energy per gram of silicon versus traditional flat-panel systems.
Algae-to-fuel company OriginOil (OTCBB: OOIL) announced a partnership with Desmet Ballestra, an international company involved in oil and fats technologies. Desmet Ballestra will help OriginOil market its single step exraction technology around the world. OriginOil is one of the most well-known companies trying to harvest the fuel-making potential of algae. The company says its algae oil extraction process is simpler and more efficient than other systems, and doesn't require chemicals or significant capital expenditure.