At The Core Of Nano: NXT

This article was originally sent to TickerTrax subscribers on Feb 3, 2011.

Natcore Technology (TSX: V.NXT, Stock Forum; $1.00)

www.natcoresolar.com

Natcore’s technology originates from Rice University in Texas, where it has one of the most advanced nanotechnology research departments in the world.

The films and processes Natcore plans to move into commercial production promise to have significant impacts on solar cells, semiconductor devices, optical and optoelectronic components, prescriptive and protective eyewear, and energy-saving architectural coatings, among many other uses.

Solar has one of the best growth opportunities in the alternative energy space but it's tough to find good small caps and micro caps. Natcore will require patience so I am looking at it as a minimum 12-month hold but the potential is very significant. They also have less than 30 million shares outstanding, so a valuation near $25 million leaves huge upside room if large contracts are secured.

The solar industry right now is dominated by a very expensive process that requires the solar cells to be made within a vacuum using large scale furnaces. Natcore has the license from Rice University to new technology:

1) The Company's liquid phase deposition technology promises to allow the solar cell industry to reduce silicon wafer thicknesses by up to two-thirds - an advancement that will dramatically improve throughput and profit margins.

2) This may create for the first time, mass manufacturing of tandem solar cells with twice the efficiency of the best solar cells available today.

Long story short - they can basically grow something similar to solar cells in warm water (vs. these vacuum based furnaces). They then make money from license fees and selling the equipment and supplies to large scale manufacturers. Main partnership at the moment is with the Chinese government, where a facility is currently being built.

Their website explains it best but below is an overview.

Website excerpt (technology overview)

Natcore was formed to utilize technology, licensed from Rice University, which enables the controlled deposition of silicon dioxide and mixed silicon oxides from an aqueous solution at ambient temperatures and pressures.

Silicon dioxide, or silica, is a fundamental building block in semiconductors, fiber optics and, of course, solar cells. It is an absolutely essential element in all these applications, and it is currently deposited onto silicon through a process called "Thermal Oxide Growth."

Simply put, this process uses complicated, multi-million-dollar furnaces, operating in a vacuum and at temperatures of up to 1,000º Celsius (1,800º Fahrenheit), to grow the necessary thin films of silicon dioxide.

In contrast, Natcore's "Liquid Phase Deposition" (LPD) process simply grows these thin films of silicon dioxide in mild chemical baths using standard, low-cost equipment.

Because Natcore's process is so relatively mild, it allows for much thinner silicon wafers, as well as the development of advanced materials and devices that would be destroyed during the standard Thermal Oxide Growth process.

Natcore's "Liquid Phase Deposition" (LPD) process was discovered at Rice University and has been independently tested and validated in an industrial laboratory setting at one of America's most respected laboratories.

In short, the technology is now ready to be tailored to specific applications. The films and processes Natcore plans to move into commercial production promise to have significant impacts on solar cells, semiconductor devices, optical and optoelectronic components, prescriptive and protective eyewear, and energy-saving architectural coatings, among many other uses.

Note: Be sure to read this page

https://natcoresolar.com/portal/index.php?option=com
_content&view=article&id=61&Itemid=29

Excerpt:

The Company's scientists have discovered that its "Liquid Phase Deposition" (LPD) process could allow, for the first time, mass manufacturing of super-efficient (30%+) tandem solar cells. For comparison purposes, these cells could achieve twice the power output of today's most efficient solar cells.

Until now, these tandem cells have been producible only under lab conditions, and at very high costs. Natcore's process has the potential to allow their mass production at a lower cost/watt than anything available today. "

SOLAR INDUSTRY FACTS:

Almost two billion people have no access to electricity and while solar would be the cheapest source, they cannot afford it.

• More energy from the sun hits the earth in one hour than the world consumes in a year.
• An estimated 50% of all solar cells are produced in China and Taiwan. In mid-2010, Natcore formed an important strategic alliance in China
• Energy security is a major concern of governments worldwide. Solar is the only guaranteed solution but currently too expensive and efficient to implement on a mass scale. Could Natcore change that?
• The implementation cycle for uranium is very long, coal is frowned upon, and natural gas lacks efficiency in large scale. Wind and solar remain the two best solutions in the alternative energy space.
• Solar only represents 1% of total energy supply so as economies of scale improve and energy production increases, there is huge room for growth globally.
• Even with such small market penetration, industry revenue was close to $40 Billion in 2009.
• The U.S. Department of Energy estimates (with government incentives) that grid parity with other energy sources could be reached by 2015. Every doubling in energy production capacity by solar is expected to result in a 20% cost decline.
• I own 20,000 shares of Natcore.

THOM CALANDRA: Thanks Danny. I think this is the one that a colleague of mine, Brien Lundin in New Orleans, put his money and words behind. By the way, I am in Colorado on my way to see a historic gold mine near Boulder. More next week. – Thom Calandra

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