STG News DECEMBER 12, 2005 - 11:09 ET
Sustainable Energy Technologies Ltd.: Highlights of Update on Operations
CALGARY, ALBERTA--(CCNMatthews - Dec. 12, 2005) - Sustainable Energy (TSX VENTURE:STG) ("Company") is pleased to provide an update on operations:
Production Startup
Final prototyping of European production units was completed last month, thereby finalizing the European supply chain. The delays from the targeted start date in October were partly due to startup issues, but were mainly the result of taking additional time at the outset to obtain the best cost, and to get the product "right" rather than rush a lesser quality product to market.
Gabriel Benmayor SA has begun assembly of the first batch of inverters with a view to validating the assembly process, and delivery of the first commercial units is now targeted for January, 2006. Manufactured costs in Spain will be significantly below costs for the product in Canada, and the Company anticipates being able to achieve further cost reductions over the coming months.
Solar PV Market Growth
The market for solar PV systems is proving to be far larger and growing faster than anyone anticipated. Most importantly, the growth is in Europe, validating the decision to focus resources on establishing a beachhead there and leave the North American market until later in 2006.
According to trade magazine, Photon International, Europe represents more than 50% per cent of the global market for solar PV. Germany alone had an estimated 770 MW of installations in 2004 almost double earlier estimates and up from 49MW in 2000. At an estimated 6 Euros per watt, this represents a market value of more than $6 billion. By comparison, the United Sates had 90 MW and Canada had 2 MW of installations in 2004.
This year, both Spain and Italy implemented programs similar to those driving growth in Germany. With more than twice the irradiation of Germany, Spain and Italy are each expected to be bigger than the US market within the next two years.
Market Interest
Market interest for the SUNERGY inverter has been excellent. The SUNERGY inverter is a very competitive product in terms of cost, reliability and performance, especially thermal rating, which at 50 degrees Celsius, the Company believes to be the highest in the industry.
Thermal performance has become a competitive battleground as the industry moves more towards larger scale projects, where inverters cannot be placed in controlled temperature environments, but are exposed to very high ambient temperatures during the hottest part of the day. Many competitive inverters begin reducing power when temperatures rise above 30 degrees Celsius resulting in reduced power output from the PV array, and negatively impacting investment returns. By comparison, the SUNERGY inverter continues at full power through 50 degrees Celsius.
The SUNERGY inverter is ideal for the Spanish and Italian markets with their sunny hot climates, and the importance of investor owned projects to those markets.
Product Development
In addition to supporting the product launch in Europe, the Company continues to devote resources to enhancing product performance and further cost reduction of the SUNERGY design. Its goal is to be among the lowest cost European producers of products in this power rating by the end of fiscal 2006. Sustainable Energy is also investing in expanding the capabilities of the SUNERGY platform to manage both grid-interactive and back up power applications - an industry first.
Sustainable Energy (www.sustainableenergy.com) develops manufactures and markets advanced power inverters for the renewable energy industry. Power inverters are strategic to the integration of new renewable energy technologies - solar and wind power, fuel cells, and energy storage systems - into the power infrastructure.
The Company's proprietary technologies enable the same power electronics and control software to be used for multiple technologies and product applications - an industry first that will lead to lower manufacturing costs and greater product reliability. The core power electronics used in the SUNERGY series of solar PV inverters have been refined and proven over the past two years in the very demanding fuel cell environment.
Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.