Lightwave Logic Inc (LWLG)

[MarcoPolo4]

Recently the EPA issued a new regulation affecting coal fired power plants and new gas powered plants to reduce carbon emissions by 90% by 2032. In order to do so, they can choose the method such as using carbon capture in wells, or using renewable energy sources. For coal fired plants converting equipment to use gas or building out a carbon capture solution could run into a billion dollars or more. In addition, they are expected to control emitting mercury and arsenic into the air and stop dumping coal ash into landfills. They will not be allowed to dump waste water from the plant any longer by 2032. Coal powered electric utilities accounted for 16% of the energy used n the U.S. this past year. This is a bridge too far for coal fired plants as they will continue to shut down over the next several years so this becomes a problem for our already stretched electric grid system.

Timing is not good as electrification of all kinds continues and data center use of electricity is expected to grow greatly in the coming years. In Europe there are regulations in place that data centers must be carbon neutral by 2030 which entails use of renewable energy. Data centers are working toward that aggressively now in Europe. There are no regulations in the U.S. for data centers to control energy use or to be carbon negative. Google has set an example and has been carbon negative for several years and Microsoft is aggressively moving in that direction. They are the forward thinkers.

Data centers see the writing on the wall and realize if they don't aggressively reduce power consumption and the associated emitting of CO2 coming from the making of that power they will be made to comply in the not too distant future through federal and state regulations. They do not want government trying to control their business. Data centers will look for any way to reduce power and to move towards carbon neutrality with the source of power used.

This of course is good for LWLG that it is the best available green technology for modulators. Could new regulations be driving some of the urgency described by other posters? To some extent perhaps as the hyper scalers knew it was coming. I think the green light that LWLG has high volume wafer manufacturing and poling solved and the 800G modulator is ready to buy has more to do with it. There will be challenges to the new regulations but the pressure to reduce CO2 emissions will continue . At the end of the day it is best to be the greenest solution available for the data centers for reducing overall power usage..