Solar Thin Films, Inc. (OTC: SLTZ)
 Solar Thin Films, Inc. |
Website: www.solarthinfilmsinc.com |
| Read our report on Solar Thin Films, Inc. (OTC: SLTZ) |
Solar Thin Films, Inc. (OTC: SLTZ)
has been a very active stock since announcing it was making the move
from solar module production equipment and turnkey facility
production to the establishment, operation and management of solar
farms across the globe.
In our opinion, the reason investor interest is building in SLTZ is
because solar farms are among one of the hottest sectors of the
market. The reason for the buzz is that companies that establish,
operate, and manage solar farms are reaping the rewards of
government mandates on clean energy in the form of grants for
project funding and revenues from power companies.
SLTZ is not alone. Some of the smartest money on the planet is
getting into the game. Google announced early last year that it
invested €3.5 million ($5 million USD) into a solar photovoltaic
farm in Brandenburg an der Havel, Germany, which is near Berlin.
Still looking for more opportunities, Google announced in December
that it is investing $94 million in solar panel farms in the
Sacramento area and another $168 million to help develop a solar
energy power plant in California's Mojave Desert in cooperation with
Brightsource. BrightSource just finalized $1.6 billion in loans from
the U.S Department of Energy as well as a $168 million investment
from Google. It is not just Google. Duke Energy announced last month
it has purchased three solar power plants in North Carolina and two
in Arizona. Duke owns nine PV solar power plants with total solar
capacity of about 50 megawatts. It is also building a 5-MW facility
in North Carolina. Still not convinced? Last month First Solar
announced that Warren Buffett's MidAmerican Energy Holdings will buy
its 550 megawatt, $2 billion Topaz solar farm located in San Luis
Obispo County. One of the two largest under construction in the
world, both of which are being built by First Solar, the Topaz, When
complete it will generate enough electricity to power 160,000
average California homes. In our opinion, solar power is here to
stay.
Cenergy, Inc.
Cenergy is a subsidiary of SLTZ that will seek to engage in the
development and syndication of Solar Power projects. Forming Cenergy
is SLTZ's latest step in shifting its focus to the establishment,
operation and management of international solar farms. SLTZ has
recruited top management for its new initiative from Israel. Why
Israel, You might ask? Solar power in Israel, and the Israeli solar
energy industry, dates back to the 1950's. By the late 1960's one in
twenty households heated its water with the sun. Currently, over 90%
of Israeli homes heat water with a solar water heater. Israeli
engineers are at the cutting edge of solar energy technology
and its solar companies work on projects around the world.
There is no oil on Israeli land, and the country strained relations
with its oil-rich neighbors has made the search for a consistent
source of energy a national priority. Israeli researchers have
advanced solar technology to the point that it is cost competitive
with fossil fuels. Israel is at the top of the list worldwide when
it comes to number of sunny days per year. Recently, Israel
announced the launch of a breakthrough solar farm that many hope
will be so affordable that it will lead to a meaningful reduction of
fossil fuel usage. The technology, a system of rotating dishes made
up of mirrors, is capable of harnessing up to 75 percent of incoming
sunlight, which is five times the capacity of traditional solar
panels. In addition, using mirrors to reduce the number of
photovoltaic cells needed, it makes the cost of solar energy roughly
comparable to fossil fuels. It goes without saying that Israel is
one of the epicenters of solar technology.
The two top Israeli executives who recently joined the company have
the potential to take SLTZ to the next level. Under their guidance,
SLTZ could become a major player in the development and syndication
of Solar Power projects. Here is a brief bio of the two:
Shlomo Ariel - President and a Director
- Mr. Ariel will serve as President and a Director of Cenergy. He
brings significant experience in general management and leadership
throughout his career. Since 2005 Mr. Ariel has served as VP Israel
Business Development at the Wolfson Group in New York. Prior to
that, Mr. Ariel co-founded Ness Technologies, the largest IT Company
in Israel today, and later served as Ness Technologies' COO and
Corporate Secretary. Prior to joining Ness Technologies, Mr. Ariel
served in the Israeli Defense Forces for 22 years where he achieved
the rank of Commander of an Armor Brigade and was head of Armor
Doctrine & Development. Mr. Ariel holds an MBA from the Hebrew
University in Jerusalem, and a BA from National Defense College IDF.
Since 2009 Mr. Ariel has been managing a clean energy company,
Greensol, which is located in Israel. Greensol, has initiated 10
megawatts of photovoltaic projects in Israel.
Adiv Baruch - Chairman of the Board
- Mr. Baruch has served as a venture partner with Infinity-I-China,
an equity investment company since 2007. Mr. Baruch is also a member
of the founding group who led the initiation of the Clean Energy
Incubator for the State of Israel (Capital Nature). From January
2004 until November 2006, he served as the President and CEO of
B.O.S., a company publicly traded on both NASDAQ (BOSC) and the Tel
Aviv Stock Exchange. From 1999 to 2003, he served as Executive Vice
President Business Development of Ness Technologies, and the
president of Ness Ventures. He has served as founder and
executive/director for several information technology companies and
Internet start-ups. Mr. Baruch is actively involved as the Chairman
of The Israel Export and International Cooperation Institute,
Hi-Tech and Telecom Division, and a board member of the IEIC. Mr.
Baruch serves as a director in several public and private companies,
including Rabintex Industries Ltd, an international manufacturer of
personal protection equipment and armored systems, as well as an
Israeli community and mobile portal company, all of which are public
traded companies listed on the Tel Aviv Stock Exchange. Mr. Baruch
has led global strategies for many companies in the technology
related sector and has executed many successful mergers and
acquisitions. Mr. Baruch has a B.Sc. in Information Systems and
Industrial Engineering from the Technion - Israel Institute of
Technology. Adiv is amongst the founders of Greensol and acts as a
managing partner.
In addition Robert Rubin will continue to serve as a Director of the
Company.
In a recent announcement, SLTZ confirmed it is in talks with a large
European renewable energy developer on several solar energy projects
in Europe. The total output of the projects is anticipated to exceed
100 megawatts. Even though these are just talks and there are no
assurances that any contracts will result, or that any contracts
signed will have successful results, this is a huge step in the
right direction. The European Union has a mission to take at least
20% of their entire energy from renewable resources by 2020. Last
year they announced that they would lay a series of highly-efficient
cables across the Mediterranean, build a series of solar power
plants in the Sahara, and import renewable energy from across the
sea. If just one percent of the Saharan Desert were covered in
concentrating solar panels it would create enough energy to power
the entire world. The initiative is being financed by a group of
European companies and is supported by the EU government.
Adiv Baruch, Chairman of the Board of Cenergy Global Corp, stated,
"We are building a strong relationship with some of the leading
players in the European market, who are experienced in developing
profitable renewable energy projects. We are exposed to large size
projects with unique economic parameters."
Renewable Portfolio Standards
A renewable portfolio standard is a state policy requiring
electricity providers to obtain a minimum percentage of their power
from renewable energy resources by a certain date. Currently there
are approximately 30 states plus the District of Columbia that have
RPS policies in place. Together these states account for more than
half of the electricity sales in the United States. Five other
states, North Dakota, South Dakota, Utah, Virginia, and Vermont,
have nonbinding goals for adoption of renewable energy instead of an
RPS. Most of the sates are requiring 10% to 20% of electric power
come from renewable energy. Maine has set its standards high by
requiring 40% from renewable sources.
Over 16 of the approximately 30 states with RPS programs have also
established a set-aside for solar energy. This results in the
creation and trading of RECs specific to solar known as Solar
Renewable Energy Certificates (SRECs). The solar set-aside
establishes a separate market for SRECs that encourages the
inclusion of solar technology in the renewable energy mix. This
differs from the REC multiplier approach used by some states in
which a REC from solar might count 2-3 times as much as any other
REC. Multipliers have had limited impact in promoting solar
technology since most REC buyers will find it easier to source 2-3
times their REC needs from the economics and scale that come with
wind farms. With a separate market for SRECs, states are able to
ensure that a portion of their renewable energy comes from solar. As
a result, states with solar carve-outs, such as New Jersey, have had
more success in promoting solar energy through the RPS than states,
such as Texas, with a generic REC market or REC multiplier. In our
opinion, SLTZ is in moving into the right sector of the market at
the right time, which could be why investors are buying up shares of
this little known company.
China adopted a renewable energy target in 2006 and modified it in
2009. Renewable electricity must be 500 GigaWatts (GW) by 2020. 300
GW must come from hydro, 150 GW from wind, 30 GW from biomass, and
20 GW from solar PV. The Chinese government is also mandating that
renewable energy account for 15% of energy production by 2020.
The European Union passed the Directive on Electricity Production
from Renewable Energy Sources in 2001 and expanded it in 2007.
Currently, renewable electricity must make up 33% of power
production by 2020. Renewable energy must be 20% by 2020.
The German Renewable Energy Act, since its adoption in 2000, is
producing strong growth in renewable power capacity by encouraging
private investors through guaranteed Feed-in tariffs. Germany has
adopted targets more aggressive than EU mandated targets. Germany's
mandate calls for renewable electricity to be 35% of production by
2020 and 80% by 2050. Renewable energy mandates call for 18% of the
energy produced to be renewable by 2020, 30% by 2020, and 60% by
2050.
In our opinion. the mandates supported by the governments in these
countries create a tremendous opportunity for SLTZ.
OTC Symbol: SLTZ
Current Price: $0.043
Shares Outstanding: 24.36 million
Market Cap: $1.05 million
52 Week Trading Range:
52-Week Low: $0.235
52-Week High: $0.01
Corporate Offices:
445 Central Avenue,
Suite 366
Cedarhurst, NY 11516
Website:
www.solarthinfilmsinc.com
Phone: 516-443-0466
Email:
Forming Cenergy is SLTZ's latest step in shifting its focus to the establishment, operation and management of international solar farms.
In
Germany 35% of production by 2020 and 80% by 2050.
Renewable energy mandates call for 18% of its energy to be
renewable by 2020, 30% by 2020, and 60% by 2050.