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.
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