ATS announces plans to commercialize breakthrough, low-cost,
flexible solar energy technology
TSE Symbol: ATA
TSX: ATA
CAMBRIDGE, ON, July 17 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it plans to begin commercial manufacture of next generation solar
cells utilizing a breakthrough proprietary photovoltaic technology - named
Spheral Solar(TM) Technology (SST). These revolutionary solar cells, comprised
of thousands of tiny silicon beads bonded in an aluminum foil, are expected to
dramatically reduce the cost of solar energy and open a broad range of new
uses of solar power by industrial, commercial and residential users worldwide.
ATS has started design of a new 120,000 square foot, highly automated
commercial SST production facility and intends to begin commercial production
of these pliable, highly efficient solar cells by the fall of 2003. ATS is
currently nearing completion of a pilot production line at its main Cambridge,
Ontario facility and will begin producing small quantities of the SST product,
for testing and product development purposes, this summer.
"We fully expect Spheral Solar(TM) Technology to revolutionize the solar
energy industry for two reasons," said Klaus Woerner, ATS President and Chief
Executive Officer. "First, the SST unique design only requires a fraction of
the raw materials - particularly the silicon - used in traditional
multicrystalline solar cells to produce the same amount of energy. Based on
technical design enhancements made over the past year to SST, we have achieved
a sunlight-to-energy conversion ratio that is competitive with conventional
multicrystalline solar cells. Therefore, we expect to generate energy at far
less cost per watt. In effect, we're talking about a new era for solar energy,
where our technology can stand on its own in the marketplace, as a viable
energy alternative."
"Second", added Mr. Woerner "SST is lightweight, pliable and break
resistance, which means it can be formed into a variety of shapes and sizes to
develop innovative new products that can be seamlessly and attractively
integrated into consumer products and even the most complex building designs.
Spheral Solar(TM) Technology will allow ATS to lead the world to more quickly
adopt a clean, renewable - and now economical - form of energy."
The Government of Canada, through Technology Partnerships Canada, also
announced today it has entered into a $29.5 million Research and Development
investment agreement with ATS. The investment will help ATS to undertake
development of a full-scale pilot manufacturing system for Spheral Solar(TM)
Technology.
Launch Strategy
ATS has created a new Canadian subsidiary, Spheral Solar Power, Inc., to
spearhead rapid commercialization of the technology.
Said Mr. Woerner: "We are moving forward with our plans for the first
factory. In addition to the investment of the Government of Canada, we also
intend to secure strategic partnerships with one or more companies that can
help us gain broad market access and may bring complementary expertise that
will accelerate commercial success of SST. Spheral Solar(TM) cells may be
harnessed for a wide variety of energy applications - from cars to homes to
commercial buildings - so it is vital that we partner to fully exploit the
market opportunities that are unique to Spheral Solar(TM) Technology."
Spheral Solar Power will rely on ATS for all of its automation
requirements for its first factory and for all subsequent factories. This
initial facility will require approximately $40 million worth of automation
equipment. Total net costs over the next three years for the commercialization
of SST are estimated at $80 million to $85 million.
"Spheral Solar(TM) Technology's first factory is expected to produce
enough cells to provide 20 megawatts of power annually, which is roughly the
total annual power requirement of 6,000 homes," said Mr. Woerner. "Quite
frankly, we believe Spheral Solar(TM) Technology will spark substantial new
demand for solar energy and we expect to support that demand by building more
automated factories in the future."
According to industry forecasts, demand for solar energy has been growing
at rates of 20% to 38% over the past five years and is forecast to increase at
20% per annum through 2010 driven by growing power consumption and demand for
distributed generation capability. The total solar energy market is estimated
today at $3.4 billion. In spite of these high growth rates, cost per watt has
been a major impediment to the growth of solar energy. SST is expected to lead
the solar industry in cost per watt power generation.
ATS and Solar Energy
ATS has been active in the photovoltaic industry since acquiring
Photowatt International S.A. of Bourgoin-Jallieu, France in 1997. Since that
time, ATS has applied its automation technology to turn Photowatt into one of
the few profitable solar energy companies in the world. Photowatt currently is
the 7th largest solar manufacturer in the world with a leading market position
in Europe.
"Following the purchase of Photowatt, ATS acquired the genesis of SST
technology, which came from the drawing boards of Texas Instruments," said
Milfred Hammerbacher, President of Spheral Solar Power. "Since that time, we
have worked to develop and enhance Spheral Solar(TM) Technology and we are now
ready to build a commercial production facility here in Cambridge, Ontario.
SST is the technology that will allow solar to successfully compete with many
other forms of energy on the basis of pure economics. Obviously, it's
considerably ahead of fossil and nuclear power in terms of environmental
performance as a clean, safe and non-depleting form of energy. We believe
Spheral Solar(TM) cells will be ideal for everyday use on the electrical grid
as a supplement to traditional forms of energy and as an enabling technology
for a variety of remote power applications."
Mr. Hammerbacher said this introduction "represents the culmination of
more than a decade of research by many engineers and scientists. Texas
Instruments initially developed the concept, and solved many of the technical
hurdles. Since being acquired by ATS, we have further reduced the cost and
improved the performance characteristics of SST. The bottom line is that SST
is now a proven technology, covered by 40 patents, that is right for today's
increasing need for sustainable, and cost-effective energy solutions."
Mr. Woerner said, "over time, we expect to license this technology to
Photowatt, which is ideally positioned to manufacture it for the European
market. Between Spheral Solar Power and Photowatt, ATS has a significant
opportunity to participate in the expected rapid growth of the solar energy
industry, both as a manufacturer of solar cells and as a provider of factory
automation."
Conference Call
ATS will hold a conference call at 11:00 a.m. eastern time today. To
listen to a live audio webcast of the call - or to review more information on
ATS and its solar initiatives - please visit www.atsautomation.com .
About Technology Partnerships Canada
Technology Partnerships Canada, a key element of Canada's Innovation
Strategy, invests strategically in research, development and innovation. By
encouraging private sector investment, the program not only spurs growth in
the technology base and technological capabilities of Canadian industry, but
also encourages the development of small and medium-sized enterprises in all
regions of Canada. Technology Partnerships Canada's risk sharing investments
are conditionally repayable, usually in the form of royalties based on company
sales.
About ATS
ATS Automation Tooling Systems Inc. (www.atsautomation.com) is the
industry's leading designer and producer of turn-key automated manufacturing
and test systems, which are used primarily by multinational corporations
operating in a variety of industries including: automotive,
computer/electronics, healthcare, and consumer products. The Company also
makes precision components and sub-assemblies using its own custom-built
manufacturing systems, process knowledge and automation technology. Through
Photowatt International S.A., and Spheral Solar Power Inc., ATS is an emerging
leader in the rapidly growing market for solar energy cells and modules. ATS
employs approximately 3,200 people at 26 facilities in Canada, the United
States, Europe and Asia-Pacific. The Company's shares are traded on The
Toronto Stock Exchange under the symbol ATA.
Certain forward looking statements are made in this news release,
including statements regarding possible future business. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of
ATS's products, technologies, customer requirements and other risks
detailed from time to time in ATS's periodic reports filed with Canadian
regulatory authorities.
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For further information: Ron Jutras, Chief Financial Officer, (519) 653 6500 To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on reports@cnw.
© 2002 Canada Newswire Ltd.