French oil major Total (NYSE: TOT; TOTF.PA) announced Wednesday it will
purchase a 17% stake in advanced biofuel company Amyris, Inc. for an undisclosed
amount. This is Total’s second investment in biofuels this year, having contributed to a funding round for Coskata in April. Total, like other big oil companies, is beginning to place its bets on second-generation biofuels. Amyris is developing microorganisms capable of converting plant sugars into a drop-in, replacement fuel for conventional gasoline. The company is specifically focusing on Brazillian sugarcane as a feedstock. Amyris filed for a $100 million IPO in April, but a date has yet to be announced.
Toshiba Corporation (6502.T) announced that it will begin producing drive motors for hybrid and plug-in
electric vehicles in Houston, Texas in 2012 to service a new contract with Ford Motor Company (NYSE: F). Toshiba did not say how many units it will produce for Ford, or what vehicle the components will be used in. Toshiba estimates that the global market for electric drives will grow from about $55 million in 2009 to $11 billion in 2020. Currently, Toshiba only produces these components in Japan.
American lithium-ion battery manufacturer Ener1, Inc. (Nasdaq: HEV)
signed a memorandum of understanding (MOU) with Russia’s Federal Grid
Company (MICEX: FEES) to help develop the use of battery systems to improve the reliability and
performance of the Russian electricity system. Similar to the U.S., Russia is hoping to introduce smart grid technology and energy storage to meet growing demand and update aging infrastructure. Russia is the fourth-largest electricity market in the world, and FGC is the largest utility with 75,000 miles of transmission lines stretching
across the country’s nine time zones. The company is 78% owned by the federal government, and it plans to invest $15 billion through 2012 to modernize its grid.
Korea’s LG Electronics (LGERF.PK) has begun producing its first solar
products. Germany’s Centrotherm Photovoltaics AG (CTN.DE) built two turn-key production lines for
LG in South Korea. LG is one of a handful of Asian electronic conglomerates that is planning a strong push into the solar industry over the next few years. LG did not announce the capacity of the new production lines, but the company said it will rapidly expand capacity in an effort to become a leading solar cell supplier. In April, LG Group announced it will invest the equivalent of $17.9 billion over the next decade to reduce its emissions by 40% and develop environmentally-friendly
businesses.
New Jersey-based Petra Solar–a company developing utility pole-mounted
solar modules–announced a manufacturing agreement with
Flextronics (NASDAQ: FLEX). The companies did not announce the capacity level of the agreement,
or where the solar panels will be made. But a press release said the deal
is in keeping with Petra Solar’s commitment to create jobs local to its customers. Petra Solar has a $200 million contract with New Jersey utility PSE&G
(NYSE: PEG) to install systems on 200,000 streetlight and utility
poles. The company also has a pilot program starting up with Tampa
Electric Company (NYSE: TE).
Flextronics is a global electronics manufacturing provider that recently signed a deal to build solar modules in California for industry leader SunPower (Nasdaq: SPWRA).
Rooftop solar company Solyndra, Inc. said at the end of last week that it has scrapped plans for an IPO and
will instead raise $175 million in a private placement.The announcement is not a major surprise. In April, concerns over the
company’s financial viability came to light following an audit by PricewaterhouseCoopers LLP. Auditors said
the company’s negative cash flows, recurring losses and stockholder
deficit "raise substantial doubt about its ability to continue as a
going concern."
Solyndra CEO Chris Gronet said "ongoing uncertainties" in the market are responsible for the change of plans. The company has
now raised more than $1 billion in equity financing and signed on for a $535 million Department of Energy loan guarantee. Solyndra expects production to begin at its second manufacturing complex in 4Q10, and by 4Q11 the company expects to be producing 300MW worth of solar systems per year to supply a hefty backlog of orders. But the company has lost some of its darling status over the last few months, and its unlikely to test the IPO waters for at least another year or more.
And finally, electric car company Tesla Motors plans to begin selling its shares on the
Nasdaq on June 29 under the symbol TSLA. The high-profile company, run by PayPal cofounder Elon Musk, wants to sell about 11.1 million shares for between $14 and $16. Some analysts suggest the price is high for a company that has recorded only one profitable quarter–especially under current market conditions. But Tesla has gained a lot of positive exposure over the last couple years for its pure play in electric cars, and investors may give the stock a surge out of the gates.
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