FIRST SOLAR MAKING BIG MONEY IN THIN FILM

The basic idea of “thin film” solar materials is to catch a wider spectrum of sunlight. That’s why there is all the talk about different materials. Traditional panels use silicon and catch a narrow part of the light spectrum. The company in this article uses cadmium telluride. Other thin films use copper, selenium, gallium, indium or something even more experimental. Each material catches a unique portion of the light spectrum.

First Solar is a specialist in thin film. It is a proud product of the University of Toledo and Toledo, Ohio, that seething cauldron of solar energy innovation. So First Solar is a shining example of how in New Energy natural resources (like sunshine) are secondary to human resources (and local financing: Early on, First Solar was backed by Toledo industrialist/glass-manufacturing pioneer Harold McMaster).

First Solar Lets the Sunshine in
Carl Gutierrez, November 6, 2007 (Forbes)

WHO
First Solar, First Solar investors

Looks like thin film companies like First Solar have a pretty sunny future. (click to enlarge)

WHAT
First Solar’s stock value jumped after the company announced new solar supply contracts.

WHEN
- This new group of agreements was announced November 5. Last month, First Solar announced it would expand production facilities that would go into operation in 2009.
- The company expects to have a 1 gigawatt production capacity by 2010.

WHERE
- First Solar is based in Phoenix, Az, but was founded in Toledo, Ohio.
- The new supply contracts are with a subsidiary of international investors Babcock & Brown and with a subsidiary of Switizerland’s Econcern.
- The newest First Solar plant will be in Malaysia. It presently has production facilities in Ohio and Germany.

WHY
- First Solar’s specialty is cadmium telluride thin film solar material.
The new Malaysian production facility will expand to 16 the companies production lines there. The new production line has a 120 megawatt capacity and will cost $150 million
- The new agreements give First Solar 557 megawatts of contracted orders and an expected revenue of $1 billion between 2008 and 2012.
Deutsche Bank raised First Solar’s per share price target from $140 to $170.

Schematic of First Solar's cadmium telluride thin film. (click to enlarge)

QUOTES
Steve O'Rourke, analyst, Deutsche Bank: "With earnings tracking capacity expansion/customer contracts, we hold a favorable view on First Solar's long-term business prospects…"