Are you Ready for Global Economic War - without Amazon, without Gold, without Banks, without Oil and without Cash... The Islamic SAND WARS have started. Crude Oil $10 per barrel by years end. Sand, yes plain old sand can be used to store solar energy, in the form of heat, and then transfered to make electricity... It's very real.. it's very big.. and Obama Clinton Kerry don't want you know. The American Economy will contract 20% almost overnight. Muslim Brotherhood and Saudi Arabia - Breaking news out of Vienna, Austria... Barack Obama and Hillary Clinton are planning to call for Marshall Law... The rise of the Muslim Brotherhood and the Collapse of Oil..and Brexit combined creates the illusion for Marshall Law, Concentration Camps inside America, Are you ready. Oil; Crude Oil Prices To Hit $10 per Barrel by Year End - Experts Say - Sand Energy is the newest form of Energy on Earth - Sand Oil Power - Sand Oil Energy - Sand Thermo Energy - Sand Box Technology White Paper M.I.T.
While some research teams are spending long hours, trying to develop
the ultimate solar energy storage system, others just have to look out of their
window and they have it all in front of their eyes. A team from the Masdar
Institute of Science and Technology (MIST) in United Arab Emirates, found that
desert sand is the perfect mean to store solar energy.
The researchers explain that the key is the incredible property of the
fine quartz and carbonate particles in sand to heat up to 1,000 degrees
Celsius. According to the team leader, Nicolas Calvet, who is an assistant
professor of mechanical and materials engineering, the higher the temperature
the higher the capacity.
The technology would work best if the industry focuses on concentrated
solar power (CSP). Using solar concentrators, high temperatures at a single
location can be achieved fast and efficient. The team from MIST believes that
concentrated solar energy can be stored in the form of thermal energy only
through the absorption qualities of the fine sand particles.
Integrated into a CSP power plant, the use of the cheap and readily
available sand material can bring huge benefits and profit. It will immediately
reduce the cost for energy storage, while it can be used as both solar absorber
and thermal energy storage mean.
The technology is part of the Sandstock project, conducted by the team
at MIST. The findings were first presented at the 21st Solar Power and Chemical
Energy Systems (SolarPACES 2015) Conference in South Africa.
Currently, the team is busy developing the first large scale
prototype. They are preparing it at the
Masdar Institute Solar Platform for the commercial market. The technology they
are using is a the beam down concentrator.
he Masdar Institute of Science and Technology, an independent, research-driven graduate-level university focused on advanced energy and sustainable technologies, today announced that its researchers have successfully demonstrated that desert sand from the UAE could be used in concentrated solar power (CSP) facilities to store thermal energy up to 1000°C.
The research project called 'Sandstock' has been seeking to develop a sustainable and low-cost gravity-fed solar receiver and storage system, using sand particles as the heat collector, heat transfer and thermal energy storage media.
Desert sand from the UAE can now be considered a possible thermal energy storage (TES) material. Its thermal stability, specific heat capacity, and tendency to agglomerate have been studied at high temperatures.
Dr. Behjat Al Yousuf, Interim Provost, Masdar Institute, said, "The research success of the Sandstock project illustrates the strength of our research and its local relevance. With the launch of the MISP in November, we have further broadened the scope of our solar energy research and we believe more success will follow in the months ahead."
A research paper on the findings developed under the guidance of Dr. Nicolas Calvet, Assistant Professor, Department of Mechanical and Materials Engineering, was presented by PhD student Miguel Diago at the 21st Solar Power and Chemical Energy Systems (SolarPACES 2015) Conference in South Africa. The paper was co-authored by alumni Alberto Crespo Iniesta, Dr. Thomas Delclos, Dr. Tariq Shamim, Professor of Mechanical and Materials Engineering at Masdar Institute, and Dr. Audrey Soum-Glaude (French National Center for Scientific Research PROMES CNRS Laboratory).
Replacing the typical heat storage materials used in TES systems -- synthetic oil and molten salts -- with inexpensive sand can increase plant efficiency due to the increased working temperature of the storage material and therefore reduce costs. A TES system based on such a local and natural material like sand also represents a new sustainable energy approach that is relevant for the economic development of Abu Dhabi's future energy systems.
The analyses showed that it is possible to use desert sand as a TES material up to 800-1000 °C. The sand chemical composition has been analyzed with the X-ray fluorescence (XRF) and X-ray diffraction (XRD) techniques, which reveal the dominance of quartz and carbonate materials. The sand's radiant energy reflectiveness was also measured before and after a thermal cycle, as it may be possible to use the desert sand not only as a TES material but also as a direct solar absorber under concentrated solar flux.
Dr Nicolas Calvet said: "The availability of this material in desert environments such as the UAE allows for significant cost reductions in novel CSP plants, which may use it both as TES material and solar absorber. The success of the Sandstock project reflects that usability and practical benefits of the UAE desert sand."
In parallel to sand characterization, a laboratory scale prototype was tested with a small solar furnace at the laboratory of PROMES CNRS 1 MW solar furnace in Odeillo, France. Masdar Institute alumnus Alberto Crespo Iniesta was in charge of the design, construction, and experiment.
The next step of the project is to test an improved prototype at the pre-commercial scale at the Masdar Institute Solar Platform (MISP) using the beam down concentrator, potentially in collaboration with an industrial partner.
The device – known as the Thermal Energy Storage System (TESS) – is being developed in South Australia with the help of an A$400,000 (US$284,000) government grant to take it from prototype to commercial reality.
The TESS device stores electricity as thermal energy by heating and melting containers full of silicon. The company says that the high latent heat capacity and melting temperature of silicon makes it ideal for the storage of large amounts of energy.
Latent Heat Storage chief executive Jonathan Whalley said storage was the next big challenge for energy generation worldwide.
generally spill energy due to supply and demand mismatches, so we’ve designed the TESS device to capture this ‘spilt’ energy for later use or release to the grid.”
“Our system also means that energy consumers will be able to purchase stored electricity off-peak at low tariffs, which ultimately means cheaper energy.”
The TESS is small enough to fit inside a 20-foot shipping container but Latent Heat Storage says it is “readily scalable as demand requires”.
This email pitch from Dr. Kent Moors for his Energy
Advantage newsletter seems to have hit just about every inbox in North America.
It has come in under a bunch of different subject lines, from “stunning
breakthrough set to make OPEC obsolete” to “$5 stock make OPEC obsolete” to
“Say ‘Goodbye’ to Your Electric Bill… Forever!” to “This could be the end for
big oil” and “it all starts with a tiny grain of sand.”
But yes, all those subject lines and notes from a
dozen different newsletters and pundits link to the same ad from Dr. Kent Moors
which launches with an enticing spiel about how these tiny grains of sand are
going to provide unlimited free energy.
This is an absurdly long sales pitch for Moors’
newsletter… when I print it out, it runs to 40 some pages, and he doesn’t
actually get around to admitting that it’s solar power he’s talking about until
page 13. And he goes to some length to push aside the concerns that many
investors might have about solar by saying that it’s different now…
“Now, am I talking about solar energy? Are these
energy particles the basis for what we call solar power?
“Well, yes and no…
“Technically speaking, this perpetual energy comes
from the infinite power of the Sun.
“But this NEW GENERATION is completely different
from what most folks imagine when they think of traditional solar power.
“I don’t know about you, but when I think of solar
power, I think of expensive, cumbersome panels plastered all over my neighbor’s
roof.
“And I think of liberals taxing me into oblivion so
they can make everybody ‘green.’
“Rest assured, today’s new solar power has changed
so much, it’s virtually UNRECOGNIZABLE.”
So yes, in the end he’s pitching some solar stocks
— what are they?
A bit more of a taste from the ad to get you
setarted:
“And while there will be numerous plays coming down
the pike, you will NEVER have another opportunity like you have today – right
now!
“You see, at the center of this energy revolution
sits one tiny company that’s about to go from virtual obscurity to household
name.
“Their revolutionary technology has completely
transformed the way this fuel is harvested.
“At the same time, they have over 750 patents
protecting their market share.
“To say this company is in the driver’s seat would
be an understatement of epic proportions.
“At this moment, every major energy player on the
planet is banging on their door looking for cheap energy.
“In fact, their client roster is a ‘who’s who’ of
global energy players.”
I’ll try to spare you the long and drawn out spiel
(you’ve already gotten it, I imagine, or you can see it here if you want the
whole magilla), but let me try to pull out a few of the better clues about this
“tiny company” at the “center of this energy revolution” so we can feed the
Thinkolator and make sure we get the right answer…
“They’ve already locked in enormous long-term deals
with the likes of Walmart, Google, the U.S. Department of Defense, and New York
City.
“In addition, cities, companies and countries from
around the globe – the biggest energy consumers on the planet – are rushing to
harness this company’s innovative technology.
“I’m talking about China, India, and even Saudi
Arabia!
“Domination of this emerging sector is near
certain… and early investors could see a potential 10, 15, 25 times their money
BEFORE this even gets going full steam.”
OK, so that’s a few clues. More…
“This company is tiny.
“And with even a small piece of the potential $48
trillion flowing toward it, the expansion is going to be off the charts.
“We’re talking 80,000% potential growth. And that’s
being conservative…
“And at this moment, they are preparing an
announcement that will likely send their stock into orbit, delivering early
investors 10, 15, even 25 times their money, for starters.”
He doesn’t say much more about what that “announcement”
might be, but he does then move on to the chemical engineering advancements and
technology that he says has allowed this company to help cut costs by “a
mind-blowing 99%”…
“The company I’m recommending today has taken solar
cells to a whole new level… helping bring the cost of solar power down by a
stunning 99%.
“And the way it works is amazing.
“In fact, their patented technology turns grains of
sand, right off the beach, into highly efficient, wafer-thin solar cells that
deliver dirt-cheap energy.”
Isn’t that what they all do? Turn sand into
purified silicon and polysilicon and slice it into wafers? Well, apparently
this particular company has some improved technology… here’s how he describes
it:
“During the process, very small particles of Si called
“seeds” are suspended in a cloud of gas.
“Si in the gas attaches to other Si particles,
forming larger and larger beads.
“These beads eventually drop out of the gas like
rain….
“The beads are then melted and formed into
wafer-thin slices of 99.99% pure Si…
“The technology is 1,000% more efficient than the
industry standard.
“And the big thing: The cost…
“Again, traditional solar cells delivered energy at
a cost of $76 per KWH.
“This company’s technology is so efficient, and
creates such pure Si, they are supplying a utility company with solar at 5
cents per KWH.”
That’s not a fair or recent comparison, I expect,
nor is it the work of solely this (or any) company, I think we should note. I’m
not sure where he’s getting the $76 number, but it is true that solar module
costs were about $76/watt back in 1977 (they’ve fallen to close to 50
cents/watt now, but were in the $5-10 range for most of the 1980s-early 2000s).
That’s different from the cost per KWH that utilities are actually paying for
electricity — but five cents per KWH is now pretty much the average cost of
utility-scale solar projects. I think that’s where the number comes from,
because later in the pitch he says “the cost of solar technology has plummeted
from over $76 per watt to about 5 cents per watt” — which isn’t really accurate
if you’re talking about the cost of modules, but, yes, we’ll stipulate that
costs are way down throughout the solar power industry even as we argue that no
one company is responsible for that 40-year drop in costs.
Photovoltaic electricity generation costs have
fallen more than any other electricity generation costs over the past five
years, and Warren Buffett’s Berkshire Hathaway has so far signed the cheapest
solar power purchase agreement I’ve seen at under four cents per KWH from a
Nevada solar farm. Costs have been coming down dramatically, with the two
biggest impacts (if you ignore clean energy subsidies, which fluctuate)
probably coming from both the falling cost of silicon and the falling cost of
financing (solar power facilities don’t price their power based on the ongoing
cost of fuel, because there isn’t any, they price it on what it costs to build
the facility and how much it costs them to finance that construction — low
interest rates may be as important as falling polysilicon prices).
So what is the “tiny company” Moors is touting with
pronouncements like, “If you could only own one solar company for the next 10
years, this would be the one?”
We’ve got a bunch of clues in that miasma of hype
we’ve gone through so far, but here’s one more:
“they signed a deal with Southern California Edison
and PG&E, the nation’s two largest utility companies, to convert
California’s power grid into solar.”
Uh oh. Is this maybe the worst-timed teaser pitch
in history? The ads just started running early yesterday, as the stock was in
the process of falling another 30%+ in a single day, part of a drop of 50% in
just the past week following their earnings report… and, in total now, a drop
of 90% since the peak in mid-July.
Yes, this is the stock that has almost
singlehandedly destroyed a handful of hedge funds this year: SunEdison (SUNE).
Or maybe, reports the hopeful optimist, this is a
well-timed pitch because the stock is bottoming out?
I don’t know — there is very little margin for
error in SunEdison these days, largely because of the huge leverage they
employed and the instability of the financial engineering platform on which
they perched this company.
I used to know a little bit about SunEdison many
years ago, back when they were MEMC Electronic Materials and were a producer of
the high quality polysilicon wafers used in semiconductors and, later, solar
panels. For a while there they had a nice pricing advantage, they got a good
foothold on the wafer business partly because they were a serial acquirer, and
demand was high… but the story has changed a bit in the years since then, they
bought SunEdison back in 2009 and they’ve more recently moved to jettison the
wafer production and become more of a “pure” solar company with a focus on
large, utility-scale solar projects like those that SunEdison was just starting
to complete six years ago, and before long they changed the name of the company
to match this new focus.
And, with a push from the hedge fund guys starting
a year or two ago, they tried to “create value” by committing to build huge
projects but then spinning off their cash-flowing, stable assets into “yieldco”
trading vehicles, companies that own solar power plant projects and the like
but don’t really do anything other than pay for maintenance, collect checks,
and spit out their cash to shareholders… and issue new shares to buy new
projects from their “parent”… kind of like a MLP.
The figuring was that these “yieldco” companies, as
they bought the solar power plants that were “dropped down” after SunEdison
built them and signed long-term contracts for the power, would essentially be a
cheap source of financing, because income investors would lap them up. And now,
with SUNE sitting on a big ol’ pile of debt and the yieldcos trading with a
dividend yield of 10%, there’s no cheap financing to be had and SUNE, now that
they can’t roll over financing by selling stuff at a stiff price to the
yieldcos, is essentially getting the equivalent of margin calls on the
acquisitions they committed to earlier this year.
This is either a horrible time to buy, because
there is a substantial risk of the company actually defaulting on debt and
having even more serious issues, or a great time to buy because they’ve
bottomed out and they do still own a lot of valuable power plants, and will be
building more. I haven’t scoured the books, but even the analysts are having
trouble modeling the outcome — not unlike Valeant, this is a shocking drop for
a stock that was built to please hedge funds, who always believe that more
value can be “unlocked” by some new financial structure or strategy, and showed
so much strength and momentum just months ago.
SUNE was a $5 billion company a year ago, and (very
briefly) a $10 billion company back in July, and now the market cap is under a
billion dollars and still falling (well, OK, it’s up a few percent so far today
— but do you know what it takes to recover from a 90% drop? That’s right, a
gain of 900%… you don’t see those very often).
And they have $10 billion in long-term debt and
another $3 billion in the minority interests that presumably represent their
holdings in Terra Power and Terra Global, the two yieldcos… which also are
worth far less than they were a few months ago. I don’t know if Dr. Kent Moors
follows a stop loss strategy with his Energy Advantage newsletter
recommendations, but if he does this might be one of those odd cases where a
position could have been stopped out at the very moment that the teaser ad is
beginning its heavy circulation (if you’re a subscriber, I’d be curious to hear
if there was a response to today’s drop — which, unlike the earnings drop a
week ago, was not caused by a known-in-advance catalyst)
And yes, if you’re dotting your i’s and crossing
your t’s and want to make sure the Thinkolator is right, Google did provide
about $145 million of financing for one of SunEdison’s projects, their Kern
County solar plant in California that was subsequently dropped down to Terra
Power (TERP). Presumably that money is part of the debt SunEdison is carrying
on the books, though the debt may have all dropped down to TERP as well. Not
sure how they account for debt or if SUNE still has a controlling stake in
TERP.
And yes, SUNE does also have about 750 patents, and
they claim to have a technology, much as Moors describes, for creating high
purity silicon — they think it will let them get module costs down to 40 cents
per watt, which would be 10-20% cheaper than what the cheapest high-volume
producers in China have been able to do so far… they describe that process,
which they call Fluidized Bed Reactor Technology (FBR), in general terms on their
website here.
More hype from Moors, in case you’re running low:
“Think of an octopus, an ever-expanding octopus
with 750 arms, reaching around the globe, into every country, every utility
company, every corporation…
“Every aspect of the rapidly expanding solar
sector… and pulling out big fat profits.
“They are so integrated in every phase of solar
that they’re bound to expand in direct proportion to the niche itself.
“It is impossible to project how far they could go,
because we’ve simply never seen a situation like this before.”
That’s probably true, it’s impossible to project
how far they could go — but one possibility, and it’s not a non-trivial
possibility given their huge debt service obligations, is that it could go to
zero. I don’t know what the covenants are on their debt, if any, but from what
I read they can’t currently afford to pay the debt service from their existing
cash flow, so something has to give. They either have to find new buyers for
their new solar projects, either the yieldcos or someone else (and the yieldcos
aren’t in any shape to pay a decent price right now), or they need financing
from some other source. With the stock at $3 it is tempting to assume that
there is enough value to protect at least a little sliver of equity like that
from being wiped out — and there probably is, but the risk is still high when
the balance sheet swings so far over to debt. If things do bounce back, or if
the fear subsides over SUNE (and some analysts are certainly standing up for
them and think the stock should still be well over $10, though even Deutsch
Bank, which defended their $28 target a week ago, cut it to $16 this week),
then the rise in the share price could be phenomenal… leverage has taken them
down so far, but it cuts both ways — if things turn, that leverage could also
send them flying higher. There was no mention of “bottom fishing” in the teaser
pitch from Dr. Moors, but that’s what you’d be trying to do if you buy SUNE
here… sometimes it works, sometimes what you thought was the bottom (like $5
for SUNE last week?) turns out to not be so solid.
Your money, so it’s your call — what do you think?
Expecting SUNE to recover? Think they’ll dominate the solar industry with their
utility-scale projects and their new FBR process? Let us know with a comment
below.
