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DayStar Technologies Announces 2011 First Quarter Financial
4:30 PM ET 5/16/11 | PR Newswire
DayStar Technologies, Inc. (Nasdaq: DSTI), a developer of solar photovoltaic products based on CIGS thin-film deposition technology, announced financial results for its first quarter ended March 31, 2011.
Net loss for the first quarter of 2011 was $0.4 million or $0.05 per share, compared with a net loss of $6.1 million or $1.61 per share in the first quarter of 2010. The per share losses were calculated on the weighted average common shares outstanding of 7.8 and 3.8 million for the first quarter ended March 31, 2011 and 2010, respectively.
Research and development expenses for the first quarter of 2011 were $0.6 million compared with $2.5 million in the first quarter of 2010. Selling, general and administrative expenses for the first quarter of 2011 were $1.2 million compared with $2.2 million in the first quarter of 2010. The decreases in both research and development expenses and selling, general and administrative expenses reflect the significant cost savings measures implemented by the Company during the past year. During the first quarter of 2011, the Company incurred $850,000 of non-cash restructuring charges resulting from the extinguishment of certain liabilities in order to pursue strategic partnerships for offshore manufacturing. Also included in the non-cash expenses for the first quarter of 2011 was $0.7 million for amortization of the discount on outstanding convertible notes. During the first quarter of 2011, the Company recorded a gain on derivative liabilities of $3.7 million related to the reduction in the conversion feature liability on the Company's balance sheet during the quarter.
DayStar Chairman and Interim CEO, Peter Lacey, commented, "During the first quarter of 2011 we continued to make significant progress in completing the restructuring of our balance sheet and further reducing our liabilities while simultaneously making strides towards a strategic partnership to implement our current business strategy. We believe we are well positioned to complete a strategic partnership and to capitalize on the increasing market opportunities within the renewable energy industry."
About DayStar Technologies, Inc.
DayStar Technologies, Inc. is engaged in the development, manufacturing and marketing of solar photovoltaic products based upon CIGS thin film deposition technology. For more information, visit the DayStar website at www.daystartech.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release regarding our business that are not historical facts may be considered "forward-looking statements." The forward-looking statements in this press release are based on information available at the time the statements are made and management's belief as of that time with respect to future events and involve substantial risks and uncertainties that could cause actual results and outcomes to be materially different. Such forward-looking statements include statements regarding the expected benefits of restructuring measures and prospective fundraising and potential strategic partnership efforts. Forward-looking statements are based on management's current preliminary expectations and are subject to risks and uncertainties, which may cause our results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties include our ability to raise substantial additional capital in the short term, our ability to achieve favorable outcomes in pending litigation, our ability to continue our business as a going concern, our ability to execute our commercialization plan, our ability to continue our debt reduction programs, and such other risks and uncertainties detailed in our annual report on Form 10-K for the year ended December 31, 2010, our quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
Contact:
DayStar Technologies, Inc. Christopher T. Lail Chief Financial Officer 408/582.7100 investor@daystartech.com
View data
DAYSTAR TECHNOLOGIES, INC. (A DEVELOPMENT STAGE ENTERPRISE) BALANCE SHEETS March 31, December 31, 2011 2010 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 23,179 $ 97,058 Other current assets 205,431 294,743 Total current assets 228,610 391,801 Property and Equipment, at cost 20,738,338 23,876,208 Less accumulated depreciation and amortization (6,063,310) (5,658,906) Net property and equipment 14,675,028 18,217,302 Other Assets: Other assets 324,677 30,940 Total Assets $ 15,228,315 $ 18,640,043 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $ 4,778,760 $ 6,943,711 Notes and capital leases payable, current portion, net of discount of $70,336 and $664,835, respectively 4,234,664 4,590,165 Total current liabilities 9,013,424 11,533,876 Long-Term Liabilities: Conversion feature 245,898 3,854,272 Total long-term liabilities 245,898 3,854,272 Commitments and Contingencies -- -- Stockholders' Equity: Preferred stock, $.01 par value; 3,000,000 shares authorized; 0 shares issued and outstanding -- -- Common stock, $.01 par value; 120,000,000 shares authorized; 8,416,054 and 6,484,516 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively 84,161 64,845 Additional paid-in capital 156,353,377 153,272,626 Accumulated deficit (10,145,391) (10,145,391) Deficit accumulated during the development stage (140,323,154) (139,940,185) Total stockholders' equity 5,968,993 3,251,895 Total Liabilities and Stockholders' Equity $ 15,228,315 $ 18,640,043
View data
DAYSTAR TECHNOLOGIES, INC. (A DEVELOPMENT STAGE ENTERPRISE) STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended March 31, 2011 2010 Revenue: Product revenue $ -- $ -- Research and development contract revenue -- -- Total revenue -- -- Costs and Expenses: Research and development 606,565 2,488,828 Selling, general and administrative 1,232,187 2,242,266 Restructuring 850,000 -- Depreciation and amortization 404,786 729,361 Total costs and expenses 3,093,538 5,460,455 Other Income (Expense): Other income -- 9,375 Interest expense (233,787) (122,226) Amortization of note discount and financing costs (705,812) (975,231) Gain on derivative liabilities 3,650,168 406,179 Total other income (expense) 2,710,569 (681,903) Net Loss $ (382,969) $ (6,142,358) Weighted Average Common Shares Outstanding (Basic And Diluted) 7,827,217 3,807,854 Net Loss Per Share (Basic and Diluted) $ (0.05) $ (1.61)
SOURCE DayStar Technologies, Inc.
http://www.jpost.com/Sci-Tech/Article.aspx?id=217857
A new more in depth article and interview with Koornstra about 100 mw solar plant in turkey.
it was not that recent. Maybe early 2010, but the quercus trust now has a 59% stake in SOEN. Check SOEN's last annual report. Since then SOEN has done reasonably well as a business, but that is not showing up in its stock price.
Hoping David and the Quercus Trust know what they are doing. They seem to be investing in firms that only they are supporting. Maybe he seems something others don't. He did get rich as an investor using his math skills. I'm guess he is in this for the long haul, which makes investing in these OTC stocks nerve racking. Its all a part of the game i guess.
lets hope so. He also bought a crap load of Solar Enertech (SOEN)and they have not done much at all PPS wise. They actually got moved down to pinksheets recently because of lack of activity. I've owned SOEN for a while and have been waiting for it to pay off and I just bought back into ENSL. They both seem really cheap at these levels, but you never know. Lets hope this David Gelbaum guy knows what he is doing. He throws a lot of money around. Hopefully most of it is for investment reasons and not his personal pipe dreams of a green future.
if nothing else this will give us some much needed name recognition and legitimacy. hopefully the project goes through and gets talked about a lot. Gira seems to have been laying the ground work in Turkey, so hopefully it is starting to pay off. Hopefully that pay off will work its way to us shareholders.
At least there is some good news out there about Girasolar.
http://www.hurriyetdailynews.com/n.php?n=us-dutch-firm-to-build-europe8217s-biggest-solar-plant--in-turkey-2011-03-28
US-Dutch firm to build Europe’s biggest solar plant in Turkey
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Monday, March 28, 2011
GÖKHAN KURTARAN
ISTANBUL- Hürriyet Daily News
This photo shows GiraSolar's solar panels in the Aegean province of Aydin.
GiraSolar, a U.S.-Dutch solar company, has begun talks with a local energy firm to build Turkey’s first and Europe’s biggest photovoltaic power station while also manufacturing solar panels for export to Europe.
“We are planning to build Europe’s biggest solar plant in Turkey,” Chief Executive Officer Wieland M. Koornstra told the Hürriyet Daily News & Economic Review during a Dutch business mission to Istanbul last week. The mission, which included representatives from 22 companies, was led by Henk Bleker, the Dutch minister for agriculture and foreign trade.
Noting the importance of Turkey in the world’s solar energy sector, Koornstra said GiraSolar had held talks with a Turkish energy giant on building a solar power station in the south of Turkey. He said the plant would generate 100 megawatts of energy.
The largest photovoltaic, or PV, power plants in Europe were Montalto di Castro Photovoltaic Power Station in Italy (84.2 MW), Finsterwalde Solar Park in Germany, (80.7 MW), Rovigo Photovoltaic Power Plant in Italy (70 MW), Olmedilla Photovoltaic Park in Spain (60 MW), Strasskirchen Solar Park (54 MW) and Lieberose Photovoltaic Park in Germany (53 Mwat the end of 2010.
On average, 1 MW of power can supply electricity to as many as 300 households per year.
Koornstra said the company planned to manufacture the solar panels in Turkey rather than importing.
“I am completely sure that we could manufacture the panels at the same price as China,” he said. “In this way, we would avoid the transportations cost as well.”
Noting that there is no solar panel market yet in Turkey, Koornstra said: “We are planning to export the solar panels to European countries. Many firms will inquire about Turkish-made solar panels once we complete this solar power station project in the country.”
According to the Turkish Renewable Energy Law, the purchase price for electricity generated from solar power is $0.133 per kilowatt hour. The law also offers a further incentive to renewable energy facilities and states that, provided the technical equipment used in the facility is produced within Turkey’s borders, the facility will be paid an additional $0.004-0.024 per kilowatt hour of electricity purchased by the state for five years after the plant becomes active.
Turkish partner anonymous
Without disclosing the name of the company, Koornstra said: “We are [currently] having discussions with our Turkish partner about the project. At the start of the project nearly 200 million euros will be invested in the power plant.”
According to data provided by the chief executive, 20 percent of the amount is slated to be invested by the business partner while nearly 80 percent of the amount could be met with outsource sources, such as Eximbank credits. “We are now also discussing the financial matter with our Turkish partner,” he said.
“To produce 1 MW electricity we will need nearly 2,000 square meters of land,” said Koornstra. “We are in search of the most feasible location at the moment.”
Noting that the project might be completed gradually over time depending on conditions, Koornstra said, “We could build the plant within two years.”
“It takes four to five years to build a nuclear plant. Nearly 20 percent of the total amount of the investment will come from our partner and 80 percent financing will be outsourced,” said Koornstra. “If we build this plant, this would make Turkey known as the solar source of the world.”
In the long term, it is better for Turks to have solar panels in their houses than buy power from the grid, he said.
Talking about the nuclear plant to be built in Akkuyu, in the southern province of Mersin, Koornstra said, “Turkey should use hybrid energy rather than relying on nuclear energy.”
“They always told us that it was safe and stable and now it’s obvious that it’s neither safe nor stable,” he said.
Koornstra said Germany and the Netherlands were facing storage problems for nuclear waste accumulated through the years. “They both stored nuclear waste in layers under the ground and they have leakage.”
Noting that hybrid energy sources such as wind and solar plants are safe and sustainable for the economy and environment, Koornstra said solar power had become more affordable in recent years, adding that such power presented none of the running costs, storage problems or maintenance problems of nuclear plants.
Recent research at Duke University has shown that sophisticated new solar energy production methods make the cheapest and least hazardous energy source that is cheaper and safer than nuclear power, according to United Press International, or UPI. The study said the cost of producing and installing PV cells had been steadily dropping for years and now cost about half of what it did in 1998.
In the U.S., the price of nuclear energy through 2011 is expected to equal $0.16-0.18 per kilowatt while solar PV is forecast to cost $0.14 per kilowatt, the study said.
so much for them getting their stuff in order. Being moved to the pinks. They have revenues, not sure why they can't get the stock to move higher. There should be interest at these levels.
any chance that this will become a reverse merger? after RS my few shares are completely worthless, but if this could reverse merge in the future a 0.0001 price is not a bad place to jump in. Unless is shell is completely toxic.
on that topic... how do you sell when you owned before the split. In my etrade account it has not updated yet with the updated BCOND, so does not show up with the current split price in my portfolio. I attempted to sell just to see how it would recognize it and it said gave me a message that I would need to call them. Anyone have experience with this? Just in case the stock does shoot up over $5 in the next week or so I might sell and wait to get back in at a lower price. Currently need $4 to break even.
yeah it must be. Yahoo has same bad info, but at nasdaq.com they list the shares outstanding at 23.5 million. I'm guessing it all will updated when it comes back to BCON from BCOND. Got worried for a bit thinking there was some loop hole that allowed them split my shares but still keep the same outstanding. Would have been really messed up with that was possible.
My etrade is showing the market cap at over 500 millions when yesterday it was 50 around 50 million. Is this just an error in that they did not adjust the number of shares yet with the split price? I sure hope they can't jump the price and keep the number of shares the same. BCON surely should not have a market cap of over 500 million at this point in time.
down over 10% in after hours trading. Will see what happens after open tomorrow. I'm guess it will open much lower than $2.80 a share. Might be a good point to buy in if it dips real far. Many times stocks to seem to get a huge dip after reverse split and then recover a bit. good for a quick buy and sell.
it seems like it just jumped with other fiber optic type of companies like JDS uniphase. If the sector in general is doing well it will pull up companies within the sector.
i can't believe this huge move upwards. Was expecting this baby to drop back to the $1 range again. I jumped out at $2.30. Nice gains for people who stayed in after friday's gains.
agreed. the real question is why does nasdaq have a delisting rule that requires the share price to be a certain number when a company can just do reverse split to meet that PPS. I agree that it is pointless, but if BCON has to do a RS in order to meet Nasdaq requirements then they will do it. It has nothing to do with smoke screens for BCON investors. Its nasdaq's rule and BCON has to follow it or get removed. I don't them to get removed and if the value is in BCON like we think then a RS will not hurt them in the long run and there is nothing to worry about. It might actually offer a nice buy in spot if there is a large post split dip.
the board has approved an RS, but they have not issued one yet. might have to in order to comply with Nasdaq PPS requirements. Will see how the PPS develops over the next few weeks.
i think there is always a news release saying when it will be done. blah blah will do a 6 for 1 RS after hours on thursday... blah blah.
yeah not what i expected.
i can't find any evidence that more than one extension is given for the same event. It might not be possible. It does seem that most companies go to great lengths to avoid being delisted. Most due a reverse split unless the company is going into bankruptcy or really going down hill. Sometimes there is no more reason to fight the inevitable. BCON is in its growth stage and not a defunked company that the market has decided can not work any longer. I've heard many horror stories with stocks that delisted. Usually makes the stock worthless, but a RS still gives you the same value of your stock. Many times there is a big dip in stock value after the RS, but many times it will recover if the company improves. So not certain death, especially with the all the government backed loans that BCON is getting. The current administration and states that are backing BCON with money/loans/land grants do not want to see them fail.
If the price does not reach the dollar mark for 10 days and they do not get an extension then they will for sure do a reverse split. Getting delisted would be much worse than a reverse split. They already have approval to do a RS. There are a handful of stocks that have recently climbed out of sub dollar range before delisting deadline and it is certainly possible with BCON. I'm hopeful, but have no delusions about it. I think an extension is more likely than reaching over $1 for 10 days straight, but an RS seems most likely without some huge support. Either way I'm holding tight for a brighter future.
taking a dive in after market trading. The usual after releasing financials. Will prob go back in the dollar range and slowly creep back up to the $1.50 range again. Too bad I bought in at the $2 range. Can't seem to get back to that level.
nothing exciting, but at least we know Girasolar is somewhat still relevant in Europe.
http://www.thediplomat.ro/articol.php?id=1744
Nicolae Floristean, representative of Dutch-based solar equipment provider Girasolar is quoted near the end of the article.
Market Report, "GiraSolar, Inc. (GRSR) - Strategic Analysis Review", published
Print article
Refer to a friend
2010-08-27 02:41:47 - Fast Market Research recommends "GiraSolar, Inc. (GRSR) - Strategic Analysis Review" from GlobalData, now available
GiraSolar, Inc. (GiraSolar) is a US-Dutch solar company. It develops, markets and manufactures solar power products. The company's major product is solar modules. It sells its products through distributors, systems integrators and other value-added customers. It operates in Germany, Spain, Turkey, the U.S., China and Taiwan. GiraSolar's three subsidiaries include of 100% owned DutchSolar B.V., 51% owned GiraSolar Turkey Ltd.
Ste. (GST), and 100% owned GiraMundo B.V. Further, the company focuses with its business activities on silicon, solar cells, solar modules and solar energy systems. The company is headquartered in Deventer, The Netherlands.
GlobalData's GiraSolar, Inc. - Strategic Analysis Review provides a comprehensive insight into the company's history, corporate strategy, business structure and operations. The report contains a detailed SWOT analysis, information on the company's key employees, key competitors and major products and services.
This up-to-the-minute company report will help you to formulate strategies to drive your business by enabling you to understand your partners, customers and competitors better.
Scope
* Business description - A detailed description of the company's operations and business divisions.
* Corporate strategy - GlobalData's summarization of the company's business strategy.
* SWOT analysis - A detailed analysis of the company's strengths, weakness, opportunities and threats.
* Company history - Progression of key events associated with the company.
* Major products and services - A list of major products, services and brands of the company.
* Key competitors - A list of key competitors to the company.
* Key employees - A list of the key executives of the company.
* Executive biographies - A brief summary of the executives' employment history.
* Key operational heads - A list of personnel heading key departments/functions.
* Important locations and subsidiaries - A list of key locations and subsidiaries of the company, including contact details.
Note: Some sections may be missing if data is unavailable for the company.
Reasons to buy
* Gain key insights into the company for academic or business research purposes. Key elements such as SWOT analysis and corporate strategy are incorporated in the profile to assist your academic or business research needs.
* Identify potential customers and suppliers with this report's analysis of the company's business structure, operations, major products and services and business strategy.
* Understand and respond to your competitors' business structure and strategies with GlobalData's detailed SWOT analysis. In this, the company's core strengths, weaknesses, opportunities and threats are analyzed, providing you with an up to date objective view of the company.
* Examine potential investment and acquisition targets with this report's detailed insight into the company's strategic, business and operational performance.
For more information or to purchase this report, go to:
- www.fastmr.com/prod/77946_girasolar_inc_grsr_strategic_analysis_ ..
Report Table of Contents:
Table of Contents 2
List of Tables 3
Section 1 - About the Company 4
GiraSolar, Inc. - Key Facts 4
GiraSolar, Inc. - Key Employees 5
GiraSolar, Inc. - Major Products and Services 6
GiraSolar, Inc. - History 7
GiraSolar, Inc. - Locations And Subsidiaries 8
Head Office 8
Other Locations & Subsidiaries 8
Section 2 - Company Analysis 9
GiraSolar, Inc. - Business Description 9
GiraSolar, Inc.- Corporate Strategy 10
GiraSolar, Inc. - SWOT Analysis 11
SWOT Analysis - Overview 11
GiraSolar, Inc. - Strengths 11
Strength - Strong Distribution Network 11
Strength - Unique Technological Solutions 11
Strength - Strong Products and Services Portfolio 11
GiraSolar, Inc. - Weaknesses 11
Weakness - High dependence on Few Clients 11
GiraSolar, Inc. - Opportunities 12
Opportunity - Growing Solar Industry 12
Opportunity - Demand for Environmental Friendly Energy 12
GiraSolar, Inc. - Threats 12
Threat - Intense Competition 12
Threat - Environmental Compliance 12
Threat - Protection of Intellectual Property Rights 13
GiraSolar, Inc. - Key Competitors 14
Section 3 - Appendix 15
Methodology 15
About GlobalData 15
Contact Us 15
Disclaimer 15
List of Tables
GiraSolar, Inc., Key Facts 4
GiraSolar, Inc., Key Employees 5
GiraSolar, Inc., Major Products and Services 6
GiraSolar, Inc., History 7
GiraSolar, Inc., Subsidiaries 8
GiraSolar, Inc., Key Competitors 14
About GlobalData
GlobalData is a leading provider of global business intelligence including market, competitor, product and customer information. It provides in-depth research, analysis, data and forecasts through a range of interactive online databases, reports and management briefings. GlobalData has a large team of experienced research and analysis, consulting, and marketing experts. It has a global presence, including key offices in the US, Europe and Asia. The group has over 50 years of experience of delivering market intelligence data and analysis and a highly experienced senior management team. View more research from GlobalData at www.fastmr.com/catalog/publishers.aspx?pubid=1015
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com or call us at 1.800.844.8156.
Author:
Bill Thompson
e-mail
Web: www.fastmr.com
Phone: 18008448156
AQT Enters Partnerships With Solar Enertech, HelioPower
in News Departments > FYI
by SI Staff on Monday 24 May 2010
AQT, a developer of copper indium gallium diselenide (CIGS) thin-film solar cells, has signed new partnerships with Solar Enertech and HelioPower. These agreements are designed to help drive the delivery and deployment of AQT's solar cells into commercial projects this year, according to the company.
Solar Enertech, a producer of photovoltaic cells and modules, is working closely with AQT as a module manufacturing partner for AQT's CIGS cells and will assist with product certification and qualification beginning in the second half of this year. Solar Enertech's research and development team will join efforts with AQT to complete the final process of turning CIGS cells into modules.
HelioPower, a solar power design and installation firm, will help address AQT’s initial customer installations and provide a smooth market entry for AQT's products.
SOURCE: AQT
http://www.solarindustrymag.com/e107_plugins/content/content_lt.php?content.5479
http://www.solare-power.com/en/index/
is this a completely new website or has it been around for a bit?
Look a lot nicer.
more like 0.25% of the company.
anyone have any idea about how many shares Wieland and other Girasolar executives own and what kind of restrictions are on these shares? Or does anyone know if this information is available to shareholders in some fashion?
Green energy obstacle due for lift by mid-year
Green energy obstacle due for lift by mid-year
Romania’s green energy future has been blocked by a legal glitch for two years, but could see remedy by mid-2010. Report by Ana Maria Nitoi
Investments worth 100s of million of Euro in Romania’s renewable energy sector have been postponed for more than two years due to unstable legislation.
But there are signs that the regulatory framework that investors have been waiting for will be in place by mid-2010.
Unclear laws have prevented banks from funding green energy projects and holding up the sector from development. One of the most attractive markets for wind farms in east Europe in the mid 2000s, Romania has recently been abandoned for Bulgaria, Hungary and Poland.
“Some companies have either put their projects on hold or have given up developing wind farms in Romania,” says Dana Duica, executive director, the Romanian Association of Wind Energy.
One such example is Dutch-based Global Wind Power, which has been observing Romania for two years and waiting until the local market settles down. During this period, the firm developed a 70 MW wind park in Bulgaria.
Romania’s southern neighbour has a “feed-in tariff” system of subsidy for renewable energy projects. Here electricity utilities must buy renewable electricity at above market rates to off-set the high costs of green power generation. Investors tend to like the predictability and profitability of this system.
But to fund green energy, Romania has adopted the alternative “green certificate” programme, where power distributors must buy an annual quota of tradable certificates representing green energy produced. One MW per hour of electricity generated and delivered to the power grid using green energy sources is worth one green certificate. This means producers of green energy gain revenues from both the sale of electricity and the sale of green certificates.
The Law 220 adopted in November 2008 gives two “green certificates” for each MW per hour generated by wind energy and small new hydro units, three green certificates for MW generated from biomass, biogas and geothermal and four green certificates for solar.
But this amended legal structure, which initially attracted investor hopes, was never applied. The new Government now wants to improve Law 220 for enforcement by mid-2010 at the latest. Minister of Economy Adriean Videanu has stated this is an urgent objective.
The value of one green certificate varies between 27 and 55 Euro and can be purchased on the Romanian power market operator Opcom’s trading platform. “Since there are few renewable energy projects developed in Romania, the number of green certificates available to be purchased is low compared to the market demand, which means the price is the highest at 55 Euro,” says Lucian Palade, executive director at Opcom.
This may change with the introduction of a new player in green energy. Billed as the largest authorised onshore wind farm in Europe, a 1.1 billion Euro project by Czech energy company CEZ in Fantanele and Cogealac, Constanta county, is set to spin this spring. At first 347.5 MW of installed capacity will come onto the power grid, but Dana Duica argues that once Czech energy group CEZ’s entire 600 MW wind project is online in mid 2011, the price for one green certificate will drop to a low of 27 Euro.
“This project will bring back investor confidence in Romania and, together with the implementation of the new law, Romania will be an El Dorado for wind farm developers,” says Duica.
Spanish wind turbine producer Gamesa has developed an interesting strategy in Romania to help boosts its sales. Gamesa is the only turbine producer to set up a company in Romania that also develops wind farms available to anyone willing to buy them. Establishing a company called Carpathian Wind to develop wind projects in Romania using Gamesa turbines, the firm designs mid-scale projects totalling about 300 MW in different stages of development. In this way, Gamesa cuts out the ‘middle man’ and succeeds in selling its technology in an age of fierce competition between turbine manufacturers. “Many newcomers have appeared globally on the turbine market, including the Chinese, who are coming in strong,” says Duica.
In the meantime, Spanish giant Iberdrola has apparently postponed its 1,600 MW installed power capacity wind project in Romania it purchased from local wind developer Rokura. “Judging from the experience of other companies who have experienced financial difficulties due to the crisis, such as Iberdrola, they had to downsize their big projects or put them on hold,” argues Duica.
The EU’s objective is for 20 per cent of the bloc’s total electricity consumption by 2020 to use renewable energy. Up to 30 per cent of Romania’s energy supply already comes from hydro energy, due to large facilities owned by state company Hidroelectrica.
Romania’s goal is to supply 33 per cent of national electricity demand with renewable energy by the end of 2010, 35 per cent by 2015 and 38 per cent by the end of 2020.
Baby steps for solar
The photovoltaic solar energy market is beginning in Romania and only up to 200 KV have been installed across the country – enough power to supply households of about 500 residents.
The most active company is Dutch-based Girasolar Romania, which is working with state-owned Electrica to install photovoltaic panels in Floresti, near Ploiesti. The firm provides equipment and design for photovoltaic solar panel installations.
On average, a household of five needs an installed power capacity of between two to three KV. The investment can reach about 15,000 Euro per household, if the panels are connected to the grid. An ambitious project to install panels on the roof of the Parliament Palace in Bucharest to generate electricity have failed so far. This one building uses the energy of a town of 25,000, which means it would need 15 MW of installed power capacity in photovoltaic panels - a 45 million Euro investment. “The Palace is so large that when the administrator replaced incandescent light bulbs with energy efficient tubes, it reduced power consumption for lighting by 60 per cent,” says Nicolae Floristean, general manager at Girasolar Romania.
The firm plans to invest 15 million Euro in a production facility for an annual capacity of 22 MW photovoltaic panels in Romania. “We are in discussions to see if we could benefit from European funds,” says Floristean.
Low biofuel supply means reliance on imports
All petrol and diesel sold at petrol stations in Romania must contain four per cent bio components – such as fuel from maize, rape and sunflower. This will increase to five per cent from mid-2010 and 20 per cent by 2020, according to EU rules. But local production of bio components is below the market demand, meaning fuel retailers must top up local bio component purchases with imports.
Nevertheless this high demand for bio components mixed with petrol and diesel, to generate bio fuels, has stirred interest from both Romanian and foreign investors, who have poured about 300 million Euro in projects in Romania to produce bio components.
Starting from mid 2010 the local demand for bioethanol - which mixed with petrol generates bio petrol - is estimated to stand at about 350 million litres per year. “About 80 per cent of the bio petrol quantity sold in petrol stations in western Europe contains bioethanol,” says Constantin Dumitru, executive director of Lukoil’s Petrotel refinery in Ploiesti. Lukoil purchased last year bioethanol from the local market and abroad at a price between 1,100 and 1,300 Euro per tonne.
The oil resulting from processing oil seed rape, soy and sunflower - FAME (fatty acid methyl ester)- mixes with diesel to create bio diesel.
Portuguese group Martifer’s 55 million Euro Prio Biocombustibil factory in Lehliu Gara, near Bucharest, covers five per cent of the local demand of bio component for bio diesel - 105,000 tonnes per year. The firm plans to increase its production and has asked the European Investment Bank (EIB) for a 32 million Euro loan as part of a new 93 million Euro investment.
One of the wealthiest Romanians, Ioan Nicolae, who owns a mixed interest group in agriculture, chemicals and hotels Interagro, is wising up to bio fuels. He invested about 100 million Euro in a factory in Zimnicea, Teleorman county, which opened last year. This factory’s production capacity stands at 80,000 tonnes per year of bioethanol. Interagro’s advantage is that it grows the corn which it transforms into fuel.
Adrian Porumboiu, another wealthy Romanian agriculturalist, has also opened a factory to produce bio components in Vaslui county, northeast Romania. Porumboiu has invested around eight million Euro in the Ulerom factory which produced about 22,000 tonnes of bio component in 2008, although it has a capacity of about 60,000 tonnes.
Expur Urziceni, owned by Dutch investment fund Quispel Investment, also started in 2009 to produce bio component for biodiesel, for which it spent about 20 million Euro. The company has partially switched its production from edible oil to oil used to produce biodiesel. The factory’s total production capacity is 100,000 tonnes.
The petroleum price drop from a high of 147 USD in mid-2008 to 30 USD in late 2008 forced some investors to postpone investment in biofuel production. Argus, a Constanta-based producer of edible oil, delayed its ten million Euro investment and told The Diplomat it has no plan to invest in such a factory in 2010.
Russian-owned Lukoil purchased in 2009 between 4,000 and 4,500 tonnes of FAME per month and bioethanol of between 1,500 and 2,200 tonnes per month to produce bio fuels sold in Romania, while Kazakh KMG-owned Rompetrol acquired 66,000 tonnes of bio components for Romania.
All fuel merchandisers in Romania, including Petrom, Rompetrol and Lukoil, acquire bio components. “We intended to invest in our own production facility of bio components, but when we realised how difficult it is to ensure a constant flow of raw material consisting of plants, we decided it was too complicated and we gave up,” says Lukoil’s Dumitru.
US-based Saving Energy Corporation also planned to pour 85 million Euro in building a factory in Romania to produce bio components for bio diesel. “We realised that the feedstock for biofuel plants was very limited worldwide, so we put our plans on hold in USA and Europe, to first find a solution to mitigate the limited feedstock supply,” says Vadim Krifuks, president of Algae Floating Systems, a company set up by the US group to develop the technology to produce microalgae for bio components.
“The biofuel plants in the EU operate on average at a 20 to 30 per cent of their total capacity due to the limited feedstock supply,” says Krifuks. “The successful companies in this sector are those who produce their own feedstock or those who are looking at alternative feedstock such as microalgae.” At present, the technology to produce biofuel derived from algae is still expensive for large scale use.
Threatening the industry is also the social cost of production. There is still a global debate raging over whether using plants such as corn, sunflower and soy for fuel is ethical, when over one billion people in the world suffer from hunger.
i think by independent they may have meant the newspaper clipping posted on the site. not the site itself.
yeah its tough getting any shares right now. Plus the unknown risks of PKs ways makes it a little scary to jump in too deeply. Otherwise this stock would be an absolutely no-brainer at these levels. I'm down pretty hard from years ago and would like to get in now to lower my average, but the uncertainty is still too nerve racking. Plus I prob couldn't get many shares anyway with the way this thing has been trading.
The question is not whether or not they are conducting real business. That is obvious. The real questions deal with what is going on with the PK BS and were are the financials of the company.
Lets hope that their lawyers are able to get it all settled and get that dbag PK completely out of the stock. The last records reported him still owning a crap load of shares.
so does this stock still exist as a shell or is it completely gone?
I can't find anything yet. Not that it matter since I now only have 2 shares after all the BS the last company pulled.
Still watching. Been thinking of jumping in at these levels, but thinking it might go a bit lower before any turn around.
So no financial reports for the next 8 plus months?
Nothing concrete, but at least it sounds positive.
Got an email back from cathy:
xxxxx,
ADNL is planning many exciting announcements in the coming weeks and months. Everyone is very excited about the progress of the company. That is really all that I can comment on now. I don't do IR for the company, I do PR. Thanks for your interest.
Rgds,
Cathy
Cathy Clarke
617-527-2089