GE BUYS SOLAR COMPANY
Barely had NewEnergyNews uttered the phrase “consolidation and corporatization” about the solar energy industry (see yesterday's UTILITY IN NEW SOLAR POWER PLANT DEAL) before GE Energy announced it was not satisfied with just a piece of PrimeStar Solar Inc. and had bought controlling interest in the thin film solar materials company.
PrimeStar Solar Inc. has a management team expert in Cadmium Telluride (CdTe) thin film technology, a side of the solar energy industry likely to be in high demand for large scale applications as energy prices and inflation rise. First Solar, the foremost CdTe thin film company, had the biggest growth of any stock in any U.S. market in 2007.
GE Energy has been doing and is doing (ecomagination) what Big Oil should be doing and should have been doing for the last decade: Becoming a highly diversified energy company with holdings in everything from coal and natural gas to wind and solar.
It is a strategy recommended to the oil industry by no less a prominence than Joseph Stanislaw, co-founder of Cambridge Energy Research Associates. (See Climate Change and Energy Security: The Future is Now)
There may be some ups and downs in GE’s stock price along the way, but oil company shares are fading despite their best efforts to buy and buoy their own stocks.
At some point in the relatively near future, New Energy holdings are going to be as meaningful as oil reserves. And then they are going to be more meaningful.
From veteran oil inudstry analyst Joseph Stanislaw: It's time to become an ENERGY company (but maybe that takes ecomagination). (click to enlarge)GE buys majority of solar energy company
June 11, 2008 (AP via Forbes)
and
GE Becomes Majority Shareholder In Emerging Solar Technology
June 11, 2008 (GE Energy/PrimeStar via Business Wire)
WHO
GE Energy, subsidiary of General Electric Co., PrimeStar Solar Inc.
WHAT
GE Energy upped its investment in Primestar to a controlling level.
click to enlargeWHEN
PrimeStar was formed in 2006 to focus on Cadmium Telluride (CdTe) thin film solar.
WHERE
- PrimeStar is based in Golden, CO.
- GE Energy is based in Atlanta, GA.
WHY
- PrimeStar specializes in CdTe thin film solar materials. It employs 60 people with a core management group thoroughly experienced in thin film technology.
- GE Energy owns also owns biomass and wind assets.
- GE Energy is the biggest U.S. builder of wind turbines and is second in the world to Vestas. Its 1.5 megawatt turbine is the industry standard.
click to enlargeQUOTES
- Victor Abate, vice president of renewables, GE Energy: "Increasing our stake in PrimeStar Solar to a majority interest underscores our continuing commitment to solar energy. GE Energy believes that renewable resources, including wind and solar, will play an ever increasing role in the future of the global energy industry…"
- Brian Murphy, chairman/CEO, PrimeStar Solar: "We are pleased by GE Energy's vote of confidence in the PrimeStar team…"
posted by Herman K. Trabish @ 6:16 AM
1 Comments:
GE and PrimeStar are both late to the game. First, G.E. has more than its share of troubles - shares of GE have fallen considerably since Immelt took over and Jack Welch, former CEO has been raking Immelt over the coals because of his poor management of the company. GE is operating a lot like Microsoft - they sit back with cash in pocket, watch what the "cool kids" are doing then go out and buy some startup that is a poor approximation of the original - then MS adds their spin and produce a widget that no one cares about.
PrimeStar Solar is far behind other companies such as their Colorado competitor AVASolar.
Additionally, China is getting ready to start cranking out solar panels and it is likely the case that Chinese solar panel producers will quickly crush American startups - a sad but unfortunate reality.
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