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At Solar EnerTech Corp. (OTCBB:
SOEN), the future of Solar Energy is Bright by Greg Moses - AllPennyStocks.com News Reporter
August 21, 2006 (AllPennyStocks.com Media, Inc.) - With
shock waves day after day in the Oil & Gas Sector due to
skyrocking demand, world events, political crisis, production
facilities and pipelines; it's definitely time to seriously
look at alternative sources of renewable energy. Some energy
alternatives touted over the years as solutions, such at
ethanol for autos, have fallen short when implemented. One
real and proven winner in the alternative energy arena has
been and continues to be solar.
One new solar firm appears to have great promise. The
Company is not well known yet, but will be soon. Solar
EnerTech Corp.
(OTCBB: SOEN) is a Photovoltaic (PV) solar energy cell
manufacturing firm based in Shanghai, China. SOEN is rooted in
China; with a US sales and distribution arm in California. The
Company's goal is to become one of China's top solar cell
producers.
SOEN has made significant progress to date in its
development. The Company is aggressively moving forward on all
elements of a very solid Business Model that includes raw
materials, architectural design, manufacturing, and sales and
distribution of the finished products. The worldwide target
market for the Company's products is primarily in Europe and
the US.
Solar EnerTech is in the right place, at the right time.
According to the US Department of Energy, worldwide demand for
electricity is expected to rise from 14.3 billion megawatt
hours in 2002 to 26.0 billion megawatts by 2025. Non-renewable
energy sources will be hard-pressed to fill the demand.
The demand for solar cells and panels continues to outpace
production. Further, the cost differential is narrowing
dramatically between solar and conventional energy sources.
The average price of PV cells and modules has decreased by 24%
from 1996 to 2003. This downward cost trend is expected to
continue as a result of improvements in manufacturing
technology and economies of scale.
The Company success starts with a reliable source of the
silicon which is the raw material and the processing of that
silicon. Earlier this year, SOEN was invited by the government
of Inner Mongolia to discuss a cooperative arrangement for the
processing and development of locally mined solar grade
silicon. The silicon sample which was collected and returned
from the region, upon analysis was shown to be a very high
grade. The sample showed a better than anticipated purity at
99.99%, which will minimize costs for further refinement.
That visit has led to a recent company announcement of the
execution of a Memorandum of Understanding. The MOU outlines a
joint venture by SOEN to acquire a 15% interest in a silicon
processing operation in Inner Mongolia coupled with the
guarantee of a secure, reliable, and cost effective supply of
solar grade silicon feedstock.
Secondly, its new state-of-the-art 42,000 square foot
manufacturing facility located in Shanghai's Jinqiao Science
and Technology Park is moving ahead rapidly to completion
ahead of schedule. The plant could begin generating revenue
from produced products in a few short months. The Company
conceived the building project to be a striking example of
solar powered architecturally integrated innovation. The eye
opening design features a solar powered rooftop "SunRoom" with
an all glass exterior, which will light and power the entire
manufacturing plant below. It will send free lighting via
fiber optic trunks streaming natural daylight into the
building through walls, insulation, and other structures.
The Company's strategic plan is designed to move Solar
EnerTech rapidly towards becoming a major player in the solar
cell manufacturing marketplace, as each production milestone
is achieved.
SOEN has determined that the projected production capacity
for the facility is estimated at an output of 20Mw per
production line. At current prices, this translates into
roughly $37.5 million dollars in annual revenue per production
line. The Company's strategic plan is to have the initial 20Mw
in production by Q4 of this year, followed by the second 20Mw
line in mid 2007, with the ultimate goal for the facility at
full production capacity of 120Mw in total annual output by
2009 utilizing the existing infrastructure of the plant.
Another positive development is that Solar EnerTech Corp.
has achieved tax favored status in China by meeting the
regulatory criteria designed for locally based environmental
high technology firms. As an enterprise enjoying this tax
favored status, the Company will benefit from significant
autonomy within the scope of its solar related business.
From a market strategy standpoint, SOEN in the US has
positioned itself, and leveraged its California operation,
with the state government of California, for future
involvement in California's solar programs.
The share price has moved up sharply in the last six months
doubling from around $0.70 to the current range around $1.49
per share. The daily average volume is just under 700,000
shares. The Company has market capitalization of nearly $107
million.
SOEN is definitely a Company to consider, as it is
executing a solid Business Plan. Solar EnerTech appears to be
doing all the right things needed to build a strong Company,
from the ground up, in an exploding and in-demand Industry
sector.
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