A123’s IPO Already Bringing Hope to Other Cleantech Startups

A123’s IPO Already Bringing Hope to Other Cleantech Startups

By Chris Morrison | Sep 24, 2009

Hours ahead of battery maker A123 Systems‘ initial public offering, optimism is already running high that the company will crack open a stagnant market and convince investors that they should also buy into other stock offerings.

A123 made an 11th-hour call yesterday to raise the price its opening price by 23 percent, to a range of $10 to $11.50. If the company gets traction it will bring in about $250 million. That’s not bad, for a firm that lost $40.7 million in the first half of the year. Its revenue was only slightly higher, at $42.9 million.

But A123 is well positioned. It started off selling batteries into the power tool market. That led to electric cars — which are not yet common on the road, by any means. The expectation is that electric vehicles will multiply rapidly in coming years; even if they don’t, A123 is also starting to make batteries for utilities, to store excess capacity from solar or wind power farms.

Battery technology also takes a long time to perfect, meaning newer competitors could take years to catch up to A123, offering some stability. So as startups go, it’s a good company to attract attention from the stock markets during a protracted downturn. The question is whether others can follow in A123’s footsteps.

I’d say “yes”, and here’s why: Investors seem to be wising up to what actually works in cleantech. When A123 first filed for an IPO last year, it was in a group of other renewable energy companies, including Imperium Renewables, a biodiesel maker. That company burned through a massive amount of cash very quickly, and is now in no position to have an IPO, or do much of anything else.

Ditto for dozens of other biofuel companies, including corn ethanol busts that did go public, like Verasun and Pacific Ethanol. But, as with the internet boom, all this simply meant that investors were still getting their bearings. It wasn’t yet evident which areas of cleantech would make for the best bets.

Now the picture is becoming clearer, and companies like A123 are offering growth prospects that are based on more than just hype.

There’s also a line of other companies that have met with some success, and are just waiting for the chance to go public. There are some obvious candidates here. Tesla Motors, the electric car maker, is working on its second model and would probably be thrilled to go public. Silver Spring Networks, a smart grid equipment maker, has inked dozens of deals, and will need cash to expand.

First Wind, a wind developer that filed around the same time last year as A123, is probably still waiting for its chance. And then there are the solar companies who have more or less proven their technology and already drawn in lots of private financing: Solyndra, Nanosolar, BrightSource and some smaller ones like Sopogy.

It takes a while to complete an IPO application, but chances are some of the above (and some not mentioned) are already hard at work. Others will probably join in once the results from A123 come back. Next year will be one to watch.

Original Story at: Bnet.Com

Biomimicry: Sopogy’s technology mimics nature

Hawaii Innovation Podcast

Mobile Users: Podcast

Nature has been showing us all along…

plumeria leaf

All great inventions have sought to mimic nature, whether their creators realized it at the time or not. From aircraft that fly among the birds, to mirrors that reflect images as only a still pond once could, to semiconductors that mimic intelligence, to the skyscrapers that rise to the sky like magnificent glass and metal trees. Those who tune in to nature and allow it to speak to them have an abundance of knowledge not available to others.

For those of us living in Hawai?i, we know that turning to the powerful and inspirational source of nature will often generate the most creative and successful solutions to even the most difficult problems.

Biomimicry

One aspect of nature humans have been trying to mimic for quite some time now (albeit unsuccessfully on a global scale) is its limitless abundance of energy. Since the age of industry, the resounding question has been, “how do we harness this energy to fulfill the unrelenting demands of our modern day needs?” If we borrow a page from nature, particularly plants, the answer becomes evident.

Plants derive their growth from processing the divine energy of the sun. They transmute sunlight into energy through the natural process of photosynthesis. Decades ago, an incredibly tuned-in individual realized this could be replicated, and gave birth to the idea of the first photovoltaic panel. A photovoltaic panel is fundamentally the best attempt at producing a synthetic plant: It converts the sun’s direct energy into electricity, just as the plumeria tree converts sunshine into fiber, leaves and fragrant flowers. Although photovoltaic panels are effective at converting some of the sun’s energy, they are inefficient at fully capturing all of the potential energy that falls upon their surface every day.

A New Approach to Solar Energy

One Hawai?i entrepreneur, Darren Kimura, has taken the concept of artificial photosynthesis one step further, in a technology he calls Micro Concentrating Solar Power, or MicroCSP™. His company, Sopogy, Inc., simplifies power generation with cheap metal, a few mirrors and a tube filled with an organic heat transfer fluid. “Nature is the ultimate industrial designer,” Kimura says.”We simply copied the best parts from her collective works and incorporated them into the MicroCSP™ technology form.”

collectorSopogy’s™ Unique MicroCSP™ SopoNova™ design allows for maximum exposure to the sun

Sopogy gets its name from the words “solar,” “power” and “technology.” Its MicroCSP™ collectors are in use around the globe, including the Middle East, Europe and Asia. Kimura’s collectors mimic the way plants convert energy in nature. Kimura’s patented process extracts solar energy by heating an organic solution (usually mineral oil.) The vapor is then used to spin a turbine and generate electricity. The design is based on a metal parabolic U-shaped trough, similar to the broad leaf of a plant. The “working fluid” is like the stem and root system of a plant, a literal “power plant!”

Sopogy’s design also includes the “phototropic” ability to follow the sun across the sky throughout the day, the way many plants do on earth. The result is an effective and efficient energy production unit in a highly scalable form, just 12 feet long by 5 feet wide, ideal for distributed energy applications.

Cooling Power for Southern California Gas Company

This summer, Sopogy announced an agreement with Southern California Gas Company to produce more than 10 tons of cooling power in an air-cooling unit that will generate significantly lower costs and emissions than a typical air conditioning system. “It isn’t obvious that solar thermal energy can be used to create air conditioning, but the efficiencies in doing so are incredible and the system displaces the burning of a significant amount of fossil fuels,” said Kimura.

Kimura is an example of a Hawai?i-based executive who continues to be inspired by nature. What better reservoir of inspiration than the system to which we are all intrinsically interconnected? Nature shares her lessons freely. If we could just listen, we might also learn how to make things less complicated than they need to be. From humble beginnings on the Big Island to commercial sites throughout the world, Sopogy is an example of how simplicity, inspired by nature, can help improve the quality of life and protect our planet for future generations to come.

Where in the World is SopoLite?

Track SopoLite™ as it travels around the Nation and the World!

SopoLite™ is a fully functional mobile lab unit used to gather data and evaluate a project site’s potential.  Its name comes from the term Satellite as the SopoLite™ is designed to be a stand-alone instrument. The system is a miniature version of Sopogy’s parabolic trough solar collector, SopoNova™ and is used as a mobile lab to collect data and thermal performance at any given location.  Various sensors on the SopoLite™ are used to measure temperature gains, flow velocities, solar irradiance, wind speed, rainfall, ambient temperatures and thermal performance of the collector. The information is transmitted back to Sopogy headquarters where our team of engineers, correlate the solar conditions with modeled data to ensure project viability.

Sopogy™ is deploying SopoLite™ across the US and around the World in an effort to collect relevant solar data useful for evaluating locations across the globe to determine the quality of their solar resources. So far, SopoLite™ has been deployed to the following locations:

  • SopoLite™ started its journey at Sopogy’s headquarters in Honolulu.
  • From there, SopoLite™ traveled to a Department of Hawaiian Homelands Building in Kapolei on the Island of Oahu
  • Currently, SopoLite™ is at the Makena Wastewater Treatment Facility on the Island of Maui.
  • Another SopoLite™ Unit is also collecting data in Costa Mesa, California

Where will SopoLite™ end up Next?

SopoLite