Hydro Makes Investment in Ascent Solar
March 14, 2007
Source: Ascent Solar /press release
http://www.ascentsolar.com/view.php?tg=press&id=19
Hydro has entered into an agreement to invest USD 9.2 million in the American solar energy company Ascent Solar Technologies, Inc., which has developed a super thin and flexible solar cell technology. The investment gives Hydro a 23 per cent ownership interest in Ascent Solar. “Ascent Solar’s flexible thin film is very exciting. Not only due to the low weight that makes the solar cells easy to transport, install and maintain, but also because flexible solar cells have a large number of potential applications in the future”, says Jørgen C. Arentz Rostrup, who heads the market activities in Hydro’s Oil & Energy business area.
“It’s our ambition to enhance our activities within solar and building systems. Ascent Solar is among the leading companies in thin film. We are therefore looking for opportunities to develop integrated building solutions together with Ascent Solar,” says Rostrup.
Vision
The listed American company Ascent Solar Technologies (NASDAQ: ASTI) will build a 1.5 MW pilot plant in 2008, and in 2010 it will commence large-scale production from a 25 MW plant. The pilot plant will be located in Denver, Colorado. “Our stated vision has been to see the day when building integrated photovoltaics will become pervasive and commonplace in the everyday lives of people throughout the world,” says Matthew Foster, CEO of Ascent Solar.
“There is no better opportunity than to work with one of the world’s leading energy and building systems producers with operations in every continent and nearly forty countries to bring this vision to a reality. We are humbled and excited by the opportunity to make it happen with the Hydro team,” says Foster.
Ascent Solar’s solar cells are extremely thin. The active layer that converts sunlight into electricity is no more than three micrometers thick (three thousands of a millimeter), compared with more than 200 micrometers in today’s solar cells. Ascent Solar produces thin film solar cells by applying a layer of copper, indium, gallium and selenide (CIGS) to a flexible foil that is encapsulated in a protecting material. The result is solar cells that can be bent, rolled, and applied to curved surfaces as well as being used the same way as conventional solar cells.
In contrast with today’s solar cells that undergo a number of production steps, often in different plants, Ascent Solar’s cells will be produced in a continuous roll-to-roll manufacturing process. This, combined with low material consumption in the production process, contributes to very low production costs.
Growing market
The market for solar power is growing rapidly. Since 1998 there has been an annual growth of approximately 40 per cent in the market for conventional solar energy. The market for thin film technologies is growing by 70 percent annually.
In November 2006, Hydro invested NOK 150 million in Norsun, a company planning to open a plant in Årdal, Norway for the production of monocrystalline silicon wafers for solar cells. Ascent Solar is therefore Hydro’s second investment in solar power over the last six months.
Hydro has purchased 1.6 million shares of Ascent Solar. Hydro purchased the shares for USD 5.7725 per share, a total consideration of USD 9,236,000, representing a 25% premium on the average of the closing bid prices in the five trading days preceding the sale. Subject to shareholder approval, Norsk Hydro will be entitled to purchase up to an additional 12% of the outstanding shares of Ascent Solar’s common stock (post-issuance) and a corresponding proportion of Class A and Class B Warrants.