QUICK NEWS, August 24: DEEP HEAT IN THE U.S.; CHINA SUNERGY, 2Q; BMW WINDPOWER; WORLD EV SALES WILL GO UP

DEEP HEAT IN THE U.S.
U.S. Geothermal Development: Where do we go from here? Performance of North American geothermal energy stocks and thoughts on the future of the industry
August 2011 (Islandsbanki Geothermal Energy Research)

"… On the back of a very substantial drop in the number of new MWs put online in the United States in 2010 (15 MW in 2010 vs. 176 MW in 2009) and a marked decline in the share prices of publicly traded North American geothermal energy companies, the industry seems to be at a crossroads…[but the] benefits of the base-load nature of geothermal energy and its low levelized cost of production are clear, particularly in light of the global re-evaluation of nuclear power following the tragedy in Japan…[and] there are close to 5,000 MWs of projects in various phases of development.

"The poor share performance of North American listed geothermal energy companies broadly reflects the general state of the sector. Low natural gas prices in the United States have…squeezed the price at which utilities are willing to buy…Operational difficulties with individual projects have resulted in negative news flow…[W]ith high perceived project risk…[it has been] difficult for companies to obtain financing…These challenges, made worse by weak share prices, have raised serious concerns…"

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"The industry has experienced a [temporary] setback…[but the] fundamentals of geothermal energy remain strong, the predictable high base-load, sustainability, and low levelized production cost. Renewable portfolio standards, introduced by many Western states, should support PPA prices…despite low natural gas prices, while federal government seems poised to enhance its support…

"…[E]ducating investors on actual risk and the life cycle of a project could have a positive effect on share performance. [L]ow valuations [of geothermal energy stocks] could attract private capital to delist companies or served as a catalyst for consolidation. That could create companies with larger balance sheets, better able to support the high upfront costs…There are several projects nearing significant milestones in the United States which can provide the industry with much needed positive news…[and] create momentum…"


CHINA SUNERGY, 2Q
China Sunergy Announces Second Quarter 2011 Financial Results; Missed Shipment Guidance, but Prospects in Emerging Markets Bright
August 19, 2011 (PR Newswire via Sunergy)

"China Sunergy Co…a specialized solar cell and module manufacturer…financial results for the second quarter ended June 30, 2011… reflected lower quarterly shipments, but slightly higher gross margins compared to [company expectations]…

"Total revenue was US$144.0 million, a 22.4% increase over Q2 2010 but a 13.1% sequential decrease from Q1 2011...Shipments totaled 89.3 MW (87.4 MW of which were solar modules) in the second quarter, representing an 8.9% decrease over Q1 2011."

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"Average selling price (ASP) per watt for the Company's solar modules was US$1.64 per watt…Gross profit decreased to US$3.7 million, a decrease of 84.1% over Q2 2010 and a decrease of 79.2% over Q1 2011.

"Gross margin was 2.6%. In-house gross margin related to modules produced with the Company's in-house cells was 6.1%...Net losses were US$16.9 million, and net margin was negative 11.7%...Operating cash inflow in the second quarter was US$37.3 million. As of June 30, 2011, the Company had cash and cash equivalents of US$117.4 million…"


BMW WINDPOWER
BMW to power car plant with wind farm
Sara Knight, 22 August 2011 (Windpower Monthly)

"BMW has contracted a German wind-farm developer to carry out the permitting procedures and implement a 10MW wind farm at the site of its existing car plant in Leipzig…The company wants the whole production process for its new electric cars to be based on the use of sustainable energies...

"Permitting for the [four 2.5MW turbines in the] wind station is currently underway, including consultations with the local population. An application has been lodged for turbines with a hub height of 140 metres and rotor diameter of 99.8 metres, the overall height not to exceed 200 metres."

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"…[O]utput from the 10MW wind farm will be used in powering the production lines for the BMW i3 and i8 electricity-driven models at Leipzig-Plaussig, which will start to ramp up from the end of 2013.

"Around 85% of the wind generation is to be used directly at the car works, fed in via the BMW Leipzig factory-site energy-control centre…"


WORLD EV SALES WILL GO UP
Electric Vehicle Market Forecasts; Global Forecasts for Light-Duty Hybrid, Plug-in Hybrid, and Battery Electric Vehicles: 2011-2017
Dave Hurst and John Gartner, 3Q 2011 (Pike Research)

"…To develop forecasts for electric vehicles, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs), Pike Research examines four key factors…[1]Vehicle availability…demand for HEVs in North America will lead to the availability of 40 models by the end of 2012, versus 14 HEV models in Asia Pacific…[2] Fuel prices…fuel costs in North America will be lower than those in Asia Pacific…

"…[3] Government market influence…China in the Asia Pacific region is taking the lead in terms of incentivizing vehicle adoption…[4] Consumer attitudes and recharging infrastructure… growth of publically available electric vehicle charging equipment (EVCE) will also help build confidence that BEVs and PHEVs will fit within consumers’ lifestyles…"

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"…Overall, the market for electrified vehicles will grow at a CAGR of 19.5% between 2011 and 2017 (this compares to a CAGR of 3.7% for the vehicle market overall during the same period). The plug-in electric vehicle (PEV) market which is the combination of both BEVs and PHEVs will see substantial growth because it is currently still in its infancy (48.4% CAGR).

"The market for PEVs is expected to grow to 1,342,067 vehicles annually by 2017 – about 1.4% of the global light-duty vehicle market. The Asia Pacific region will be the leading market due to the strength of the Japanese market and growth in China in the coming years. The PEV market is anticipated to miss many of the targets set by various government bodies because vehicle programs have not been launching as rapidly as expected…"