THE SUN RISES ON MAGNOLIA SOLAR (OTC.BB) MGLT
/EINPresswire.com/ Demand for renewable, recession-proof energy continues to surge. Wind and thermal energy are often criticized on the grounds that they are expensive. They also face resistance by local people who don't want large windmills in their neighborhood or big holes dug in their backyard.
Solar energy has become an increasingly attractive source of renewable energy in light of these problems and changes in technology and our national political climate.
The sun may be more than 90 million miles from Earth, but it's always there and always providing energy. But what happens to domestic hopefuls like Magnolia Solar Corporation (OTCBB: MGLT) when the market is monopolized by another country like China?
This is what happens..
On September 1, 2011, The New York Times ran an article about solar power by Keith Bradsher that stated, "The bankruptcies of three American solar power companies in the last month, including Solyndra of California on Wednesday, have left China's industry with a dominant sales position — almost three-fifths of the world's production capacity — and rapidly declining costs."
In the past, the unique challenge to this industry was creating affordable solar power by harnessing the sun's energy by absorbing larger part of energy. More than 80 percent of the solar panels in use today are made of silicon, that only absorbs part of the energy available from the sun.. So far, this technological approach hasn't improved efficiency enough to surpass China's low manufacturing bills. The Chinese companies' cost advantage simply trumped any angle or edge the Western companies had when they could produce legacy crystalline solar panels at a staggeringly low cost of $1 per watt.
How did China do it? Well, state assistance flowed from Beijing outwards. State-owned banks provided loans at extremely low rates and provided extensive tax breaks. Provincial governments handed out cheap or free land. This left juggernauts like Trina Solar, Yingli Green Energy, and Suntech Power amongst others to monopolize the solar energy industry not just in China but globally.
When The New York Times printed their article, two major American manufacturers besides Solyndra were feeling the sting. New York's SpectraWatt and Evergreen Solar of Massachusetts both filed for bankruptcy. BP Solar had stopped manufacturing at its complex in Frederick, Maryland the previous spring. Several companies in Germany had also started laying off some of their employees.
To become competitive with China's solar industry Western companies need to change something about their business model and getting a new technological edge. Now, less than a year after Bradsher's sobering piece in the New York Times, that window of opportunity may be opening thanks to a new tariff imposed by the U.S. Commerce Department. Regulators determined that China was selling its panels far below fair-market value. It was "dumping" them. Now, Chinese imports are taxed at 31 percent or higher.
To compete in the market place, new and innovative solutions are needed that will provide solar cell performance equal to better than silicon with lower cost. Several companies are working to develop technologies that can provide that answer. The right Western company with the right timing and a new technological (or nanotechnological) edge can now make its mark. Magnolia Solar Corporation (OTCBB: MGLT) is such a company.
Like Sun Power, the company that focused on efficiency to stay afloat during the height of China's solar market domination, Magnolia Solar Corporation is a relatively small company. It is thriving by developing innovative nanotechnology based thin-film solar technology that employs nanostructured materials and unique designs. The goal is to create highly competitive, low cost photovoltaic cells that can be used on glass and flexible substrates in numerous applications.
How does MGLT have the edge over the other companies entering this market like Ascent Solar Technologies Inc. (NASDAQ: ASTI) and DayStar Technologies Inc. (NASDAQ: DSTI)? Let us count a few of the ways…
MGLT's patent-pending, nanostructure-based antireflection coating technology has the potential to increase present thin-film solar cell efficiency from about 11% to a percentage that rivals crystalline photovoltaic cells in a commercial environment, potentially reaching $0.50 per watt. By combining the cost benefits of nanotechnology with the flexibility of thin-film, the company aims to be uniquely positioned in the market as a low-cost provider of high-value solar technologies. In addition, with increasing demand and greater pricing power in the U.S., the firm could unlock significant value for shareholders over the medium term.
By using porous silicon dioxide nanorods, MGLT recently demonstrated ultra-high, omnidirectional transmittance through a coated glass window over the entire accessible portion of the solar spectrum in its testing. Magnolia's Chief Technical Officer, Dr. Roger E. Welser, announced the results at the IEEE Photovoltaics Specialist Conference (PVSC) in Austin, TX on June 8, 2012 as part of a special session on New Concepts in Light Concentration and Light Trapping. "Ultra-high, broadband transmittance through coated glass windows has been demonstrated over a wide range of incident angles," noted Dr. Welser. "At normal incidence, the reflection losses at the glass-air interface have been reduced from approximately 4% to less than 1%. At large angles of incidence, the reflection losses have been reduced from over 25% to less than 5%. We believe the nanostructured coating developed by Magnolia for photovoltaic applications significantly outperforms conventional magnesium fluoride coatings at all relevant wavelengths and incident angles."
On the financial side, MGLT has received many grants and contracts for developing high efficiency thin film solar cells. These include, NASA, Airforce and NYSERDA. On top of that, MGLT received a $750,000 Phase II award from the credibility-boosting United States Air Force Research Laboratory as part of the Small Business Innovative Research (SBIR) program. As a result, MGLT shares surged 98.68% to $0.30 per share for a market cap of $7.9 million.
When California Governor Jerry Brown enacted his renewable energy mandate requiring California-based utilities to draw 33% of their power from solar panels, windmills and other sources by 2020, MGLT was there to help accept the challenge.
As one of several expert panelists at the College of Nanoscale Science and Engineering's (CNSE) Energy & Environmental Technology Applications Center (E2TAC), MGLT President and CEO Dr. Ashok K. Sood said, "During the 2010 fiscal year, Magnolia Solar has been funded on renewable energy programs by the United States Air Force and the New York State Energy Research and Development Agency (NYSERDA). So we clearly recognize the importance of a national, renewable energy plan and support various government agencies in that endeavor."
With the new tariff in place, Magnolia could be the one to seize the solar crown and bloom into one of the alternative energy success stories. As I mentioned above, timing is key…for the company and for potential investors. Catch some of these rays while you can!
Put Magnolia Solar (OTC.BB MGLT on your radar today.
Seraphim Strategies
Lou Levenstein
727.489.9939
info@seraphimstrategies.com
www.tomorrowsbluechips.com
www.seraphimstrategies.com
Always read http://tomorrowsbluechips.com/disclaimer/ pertaining to this article.
Forward-Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.
Solar energy has become an increasingly attractive source of renewable energy in light of these problems and changes in technology and our national political climate.
The sun may be more than 90 million miles from Earth, but it's always there and always providing energy. But what happens to domestic hopefuls like Magnolia Solar Corporation (OTCBB: MGLT) when the market is monopolized by another country like China?
This is what happens..
On September 1, 2011, The New York Times ran an article about solar power by Keith Bradsher that stated, "The bankruptcies of three American solar power companies in the last month, including Solyndra of California on Wednesday, have left China's industry with a dominant sales position — almost three-fifths of the world's production capacity — and rapidly declining costs."
In the past, the unique challenge to this industry was creating affordable solar power by harnessing the sun's energy by absorbing larger part of energy. More than 80 percent of the solar panels in use today are made of silicon, that only absorbs part of the energy available from the sun.. So far, this technological approach hasn't improved efficiency enough to surpass China's low manufacturing bills. The Chinese companies' cost advantage simply trumped any angle or edge the Western companies had when they could produce legacy crystalline solar panels at a staggeringly low cost of $1 per watt.
How did China do it? Well, state assistance flowed from Beijing outwards. State-owned banks provided loans at extremely low rates and provided extensive tax breaks. Provincial governments handed out cheap or free land. This left juggernauts like Trina Solar, Yingli Green Energy, and Suntech Power amongst others to monopolize the solar energy industry not just in China but globally.
When The New York Times printed their article, two major American manufacturers besides Solyndra were feeling the sting. New York's SpectraWatt and Evergreen Solar of Massachusetts both filed for bankruptcy. BP Solar had stopped manufacturing at its complex in Frederick, Maryland the previous spring. Several companies in Germany had also started laying off some of their employees.
To become competitive with China's solar industry Western companies need to change something about their business model and getting a new technological edge. Now, less than a year after Bradsher's sobering piece in the New York Times, that window of opportunity may be opening thanks to a new tariff imposed by the U.S. Commerce Department. Regulators determined that China was selling its panels far below fair-market value. It was "dumping" them. Now, Chinese imports are taxed at 31 percent or higher.
To compete in the market place, new and innovative solutions are needed that will provide solar cell performance equal to better than silicon with lower cost. Several companies are working to develop technologies that can provide that answer. The right Western company with the right timing and a new technological (or nanotechnological) edge can now make its mark. Magnolia Solar Corporation (OTCBB: MGLT) is such a company.
Like Sun Power, the company that focused on efficiency to stay afloat during the height of China's solar market domination, Magnolia Solar Corporation is a relatively small company. It is thriving by developing innovative nanotechnology based thin-film solar technology that employs nanostructured materials and unique designs. The goal is to create highly competitive, low cost photovoltaic cells that can be used on glass and flexible substrates in numerous applications.
How does MGLT have the edge over the other companies entering this market like Ascent Solar Technologies Inc. (NASDAQ: ASTI) and DayStar Technologies Inc. (NASDAQ: DSTI)? Let us count a few of the ways…
MGLT's patent-pending, nanostructure-based antireflection coating technology has the potential to increase present thin-film solar cell efficiency from about 11% to a percentage that rivals crystalline photovoltaic cells in a commercial environment, potentially reaching $0.50 per watt. By combining the cost benefits of nanotechnology with the flexibility of thin-film, the company aims to be uniquely positioned in the market as a low-cost provider of high-value solar technologies. In addition, with increasing demand and greater pricing power in the U.S., the firm could unlock significant value for shareholders over the medium term.
By using porous silicon dioxide nanorods, MGLT recently demonstrated ultra-high, omnidirectional transmittance through a coated glass window over the entire accessible portion of the solar spectrum in its testing. Magnolia's Chief Technical Officer, Dr. Roger E. Welser, announced the results at the IEEE Photovoltaics Specialist Conference (PVSC) in Austin, TX on June 8, 2012 as part of a special session on New Concepts in Light Concentration and Light Trapping. "Ultra-high, broadband transmittance through coated glass windows has been demonstrated over a wide range of incident angles," noted Dr. Welser. "At normal incidence, the reflection losses at the glass-air interface have been reduced from approximately 4% to less than 1%. At large angles of incidence, the reflection losses have been reduced from over 25% to less than 5%. We believe the nanostructured coating developed by Magnolia for photovoltaic applications significantly outperforms conventional magnesium fluoride coatings at all relevant wavelengths and incident angles."
On the financial side, MGLT has received many grants and contracts for developing high efficiency thin film solar cells. These include, NASA, Airforce and NYSERDA. On top of that, MGLT received a $750,000 Phase II award from the credibility-boosting United States Air Force Research Laboratory as part of the Small Business Innovative Research (SBIR) program. As a result, MGLT shares surged 98.68% to $0.30 per share for a market cap of $7.9 million.
When California Governor Jerry Brown enacted his renewable energy mandate requiring California-based utilities to draw 33% of their power from solar panels, windmills and other sources by 2020, MGLT was there to help accept the challenge.
As one of several expert panelists at the College of Nanoscale Science and Engineering's (CNSE) Energy & Environmental Technology Applications Center (E2TAC), MGLT President and CEO Dr. Ashok K. Sood said, "During the 2010 fiscal year, Magnolia Solar has been funded on renewable energy programs by the United States Air Force and the New York State Energy Research and Development Agency (NYSERDA). So we clearly recognize the importance of a national, renewable energy plan and support various government agencies in that endeavor."
With the new tariff in place, Magnolia could be the one to seize the solar crown and bloom into one of the alternative energy success stories. As I mentioned above, timing is key…for the company and for potential investors. Catch some of these rays while you can!
Put Magnolia Solar (OTC.BB MGLT on your radar today.
Seraphim Strategies
Lou Levenstein
727.489.9939
info@seraphimstrategies.com
www.tomorrowsbluechips.com
www.seraphimstrategies.com
Always read http://tomorrowsbluechips.com/disclaimer/ pertaining to this article.
Forward-Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.
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