Friday, August 3, 2007

The Future is Solar

By Robert Rapier

I have done a lot of research lately into various alternative diesel technologies as I was working on my renewable diesel chapter. One thing that became very clear to me is that the world will not be able to displace more than a fraction of our petroleum usage with biofuels. I already knew that this was the case with ethanol, but now I believe that is true of all liquid fuels. Consider this sneak preview (still in draft form) from the book:

There are approximately 4 billion arable acres in the world. There are many different feed stocks from which to make renewable diesel, but most biodiesel is made from rapeseed oil. Rapeseed is an oilseed crop that is widespread, with relatively high oil production.

Consider how much petroleum could be displaced if all 4 billion acres of arable land were planted in rapeseed, or an energy crop with an oil productivity similar to rapeseed. The average rapeseed oil yield per year is 127 gallons/acre. On 4 billion acres, this works out to be 33 million barrels per day of rapeseed oil. The energy content of rapeseed oil is about 10% less than that of petroleum diesel, so the petroleum equivalent yield from planting all of the world's arable land in one of the more popular biofuel options is just under 30 million barrels per day. This is just over a third of the world's present usage of petroleum, 85 million barrels per day. Yet this is the gross yield. Because it takes energy to grow, harvest, and process biomass into fuel, the net yield will be lower, and in some cases may even be negative ( i.e., more energy put into the process than is contained in the final product).

The fundamental problem here is that photosynthesis is not very efficient. Consider the rapeseed oil yield above. A reader at The Oil Drum made a table that is basically the solar capture/conversion to oil from various crops. I tried to recreate the table, but it was taking far too much time (Blogger has a terrible quirk about tables), so here is a link.

Basically, the gist is that only a few hundredths of a percent of the incoming solar energy gets converted into liquid fuels. Of course some did get converted into other biomass, which could be otherwise used for energy, but generally when an acre of rapeseed/canola is planted, we get about 0.06% conversion of the sun's energy into oil. (This exercise can still be proven by assuming the theoretical limit for photosynthesis. One must just make more assumptions and it is not as easy to follow).

Consider now direct solar capture. Let's not even consider the record 40+% efficiency that Spectrolab announced last year. Let's not consider any of the more exotic technologies that are pushing the envelope on direct solar capture efficiency. BP's run of the mill silicon solar cells operate with an efficiency of 15%. That's about 250 times better than the solar to rapeseed oil route. Or, to put it a different way, you can produce the same amount of energy with direct solar capture in a 13 ft. by 13 ft. area that you can by photosynthesis in 1 acre of rapeseed. And odds are that you have a roof with an area that size, which could be used to capture energy without the need to use arable land.

Of course the disadvantages are 1). The costs for solar are still relatively high; 2). We have a liquid fuel infrastructure; 3). Storage is still a problem. But in the long run, I don't see that we have any chance of maintaining that infrastructure. The future is solar.

Thursday, August 2, 2007

Shanxi Tianhong Silicon Material Company invested 5.2 billion RMB to produce polysilicon

Shanxi Tianhong Silicon Material Company signed the investment contract with Xianyang government to produce polysilicon on July 31st, 2007. The total investment is 5.2 billion RMB, and the total polysilicon production capacity will be over 10,000 ton.

The first phase project will be able to produce 3750 ton polysilicon per year, including electronic grade polysilicon 1250 ton and solar grade polysilicon 2500 ton.

Solarfun Acquires Majority Stake in Silicon Wafer Producer

Acquisition to Give Solarfun Wafer Production Capacity and Access to Additional Polysilicon Supply

SHANGHAI, China--(BUSINESS WIRE)--Solarfun Power Holdings Co., Ltd. ("Solarfun")(NASDAQ: SOLF), an established manufacturer of both photovoltaic (PV) cells and modules in China, today announced that it has entered into an agreement to acquire a 52% equity interest in Jiangsu Yangguang Solar Technology Co. Ltd. ("Yangguang Solar") for approximately US$8 million from Nanjing Linyang Electric Power Investment Co., Ltd. ("Linyang Electric").

Yangguang Solar, an early stage company, is engaged in silicon wafer production. It was founded by Jiangsu Zhongneng PV Technology Development Co., Ltd. ("Zhongneng"), a polysilicon supply company in China. Zhongneng sold a 70% equity interest in Yangguang Solar to Linyang Electric and a 30% interest to Lianyungang Suyuan Group Co, Ltd. ("Suyuan Group") in June, 2007.

Solarfun's purchase of Yangguang Solar has the same price per equity interest and substantially the same terms as Linyang Electric's purchase from Zhongneng in June. Mr. Yonghua Lu, Solarfun's founder, significant shareholder, Chairman and Chief Executive Officer, owns a 70% equity interest in Linyang Electric. Both Linyang Electric and Suyuan Group own a minority equity interest in Zhongneng. Upon completion of the transaction in early August 2007, Solarfun will own 52% of Yangguang Solar, Linyang Electric will own 18% and Suyuan Group will own 30%.

Yangguang Solar plans to commence operations in October 2007 with an annual production capacity of 15-20 MW of 5-inch silicon wafers. Total production in 2007 is expected to be 3-5MW. Yangguang Solar intends to install additional equipment to enable it to gradually move to 6-inch silicon wafer production in 2008. Total production capacity is expected to be 60-80MW in 2008, with expected annual production of 50-60MW.

Yangguang Solar has secured 1,950 tons of polysilicon supply over a three-year period from Zhongneng. The agreement calls for delivery of 50 tons in 2007, 700 tons in 2008 and 1,200 tons in 2009. Solarfun has the option to acquire all or any portion of the wafers produced by Yangguang Solar if the products meet Solarfun's testing standards.

Zhongneng has agreed to provide Yangguang Solar a 3% discount to market price for all polysilicon purchased by Yangguang Solar over the three-year supply period and Yangguang Solar has similarly agreed to provide Solarfun a 3% discount to market price for all wafers purchased from Yangguang Solar by Solarfun, if any.

This acquisition provides Solarfun with an additional source for silicon wafers, as well as strategic flexibility to expand into additional segments of the solar industry value chain in the future, while minimizing near-term capital requirements.

"This acquisition is a very positive strategic development for Solarfun," said Mr. Yonghua Lu, Chairman and CEO of Solarfun. "It allows us to secure access to a steady supply of silicon wafers at a reasonable price. Moreover, in an industry where quality is paramount, competition intense, and raw materials often in short supply, acquiring Yangguang Solar ensures that we will be able to provide our customers with top quality products at a competitive price."

About Solarfun

Solarfun Power Holdings Co, Ltd. manufactures both PV cells and PV modules, provides PV cell processing services to convert silicon wafers into PV cells, and supplies solar system integration services in China. Solarfun produces both monocrystalline and multicrystalline silicon cells and modules, and manufactures 100% of its modules with in-house produced PV cells. Solarfun sells its products both through third-party distributors, OEM manufacturers and directly to system integrators. Solarfun was founded in 2004 and its products have been certified to TUV and UL safety and quality standards. SOLF-G
http://www.solarfun.com.cn

GT Solar to Equip One of Largest Solar Wafer Factories in World

Glory Silicon Energy Purchases DSS450 Furnaces -- $171 Million Order
Press Release from GT Solar Incorporated

Merrimack, NH (USA), July 31, 2007 - GT Solar Incorporated, one of the major providers of manufacturing equipment and turnkey manufacturing solutions to the photovoltaic (PV) industry, announced today that it has signed a $171 million dollar contract with Glory Silicon Energy Co., Ltd., of JiangSu, China for GT's new and more efficient DSS450 furnaces for the production of multi-crystalline silicon ingots. The contract is the largest single DSS furnace contract in GT Solar's history and will include deliveries over the next two years. The order will equip what is projected to be one of the largest wafer factories in the world - about 1500MW annually.

The DSS450 (Directional Solidification System) furnace is new to GT Solar's equipment line. It is similar to the DSS240, but can grow larger silicon ingots than GT's DSS240 furnace, with an average ingot weight of 400kg (or customized up to 450kg), and can deliver 30% more output than GT's DSS240 furnace.

GT Solar Incorporated President and CEO, Thomas Zarrella, said: "Glory Silicon Energy Co. will be a major player in the growth of the global solar industry. Glory's order for our DSS450 furnaces over the next two years is one more indication of the significant growth of the solar industry in China."

GT Solar Vice President for Asia, Jeff Ford, said: "This is the second major order for GT Solar's new DSS450 furnaces that produce larger silicon ingots. It's a key part of Glory's plan to jumpstart its production."

Glory Silicon Energy Co., Ltd. President, Wang LuBao, said: "We have turned to GT Solar for its DSS450 furnaces because they are the most technologically advanced on the market today. We look forward to using GT's equipment to produce quality solar wafers for the growing solar marketplace worldwide."

About GT Solar Incorporated

GT Solar Incorporated, a wholly owed subsidiary of GT Solar International, is one of the largest providers of manufacturing equipment and turnkey manufacturing solutions across the photovoltaic supply chain. Based in Merrimack, NH (USA), the company's products include equipment used to produce multi-crystalline solar wafers, cells and modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce the polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com/.

About Glory Silicon Energy Co., Ltd.

Glory Silicon Energy (Zhenjiang) Co., Ltd. is a newly established company with its production facility in the city of Yangzhong in the Chinese province of Jiangsu. It was founded by various investors, including the Huantai Corporation. Huantai was one of the first Chinese businsesses to get into the production of solar wafers.

Wednesday, August 1, 2007

Mainstreaming Clean Energy in Rizhao, China

On June 15, the city of Rizhao, China, received a 2007 World Clean Energy Award (WCEA) in the category of "Policy and Lawmaking" for its popularization of clean energy. The award’s presenters noted that in a nation known for its heavy dependence on coal, Rizhao represents an inspiring example of the mainstreaming of renewable energy sources. Large-scale solar power and marsh gas applications in the city directly benefit more than 1.5 million residents, dramatically reducing their yearly energy costs while providing other environmental and health benefits.

Policy and lawmaking by Rizhao's local administration have been instrumental in bringing about the city's energy revolution. Since his appointment in 2001, Mayor Lizhaoqian and the Rizhao Municipal Government have adopted several measures and policies aimed at popularizing clean energy technology, including the Regulations on Implementing Solar Energy and Construction Integration that standardize the use of solar energy--particularly solar water heaters--in new buildings. Building examiners must approve all construction procedures before the buildings are sanctioned, and any blueprints that lack built-in solar water heaters will fail to pass final approval.

Solar water heaters are currently installed in 99 percent of all buildings in Rizhao's urban area, and in more than 30 percent of residences in rural areas. Additionally, more than 6,000 families in Rizhao use solar cookers in their kitchens. During the fallow months, a transparent, biodegradable film is used to cover approximately 470 million square meters of the city's farmland to allow for an increase in the land temperature and faster maturation of crops in the spring. The city is also home to more than 560,000 square meters of solar photovoltaic panels, which have effectively reduced conventional electricity usage by 348 million kilowatthours per year.

More than 15,000 residential units in Rizhao use technologies that allow them to generate marsh gas from agricultural waste water, with the units capable of generating up to 230,000 cubic meters daily. Currently, the city's annual marsh gas production is 4.5 million cubic meters, which replaces the use of some 3,100 tons of coal annually. Installed marsh gas power generators have a total production capacity of 13,500 kilowatthours, which would reduce the use of coal this year by 36,000 tons.

Mayor Lizhaoqian and his team note that one of the key challenges for China is finding solutions to develop and rapidly scale up the use of sustainable, clean energy. Speaking of China's economic advancement, he articulated that, "to maintain a high growth rate of the economy, restriction by energy and environment is nowadays an inevitable problem in China. Therefore, it has been an important task during the economic and social development in China to search for new energies, develop energy efficiency technologies, reduce environmental pollution, and build a resource-saving society."

According to the WCEA presenters, Rizhao's many achievements highlight the great potential for government policy and legislation to achieve major changes in the energy sector in a relatively short period of time. Upon receiving the award, Mayor Lizhaoqian said it was "a great honor and encouragement for our work.... Winning the award enhances our confidence and determination to make more efforts on clean energy, and it will have significant and long-term influence on the popularization and utilization of clean energy in our city." He noted that his administration will continue to explore new approaches to popularize and utilize clean energy, in an effort to build Rizhao into "an eco-city featuring energy efficiency, sound ecology, and a beautiful environment."