EU Cadmium Ban Would Seriously Hurt First Solar

By Ucilia Wang

The European Union is considering tightening a ban on hazardous chemicals. The ban would significantly cripple First Solar (FSLR) and other companies that make solar panels with cadmium as a key ingredient.

The Swedish government, which holds the EU presidency, has proposed to include all electronic products as part of an effort to update a law on hazardous chemicals. Cadmium is already considered a hazardous substance, but solar panels aren't covered under the current law.

In addition, a committee in the European Parliament is drafting a proposal that would nudge solar companies to stop using cadmium, reported the New York Times Monday. The proposal would require companies to apply for what amounts to a permit to use cadmium. The permit would last four years and could be renewed.

Tempe, Ariz.-based First Solar is one of the top 10 solar panel makers in the world and uses cadmium-telluride in its panels. Its success has helped to make cadmium-telluride panels competitive against the more widely available silicon-based solar panels.

As a result, rafts of cadmium-telluride solar companies have cropped up in recent years hoping to replicate First Solar's success. Some of these startups include Abound Solar, PrimeStar Solar and Xunlight 26.

PrimeStar has attracted investments from General Electric, which has decided to close its silicon solar panel factory in the United States and focus its solar strategy on selling thin-film solar panels like the ones under development by PrimeStar.

Europe is the largest solar market, so any move by the EU to restrict cadmium-telluride solar panel sales would cause a big problem not just for First Solar.

First Solar wants the EU to specifically exclude solar panels from being added to the revised hazards materials law. Aggressive goals by European countries to cut emissions and embrace renewable energy could help First Solar's cause.

Comments

[Davewmart]

Solar is not the totally pollution free panacea that it is often thought.
It has it's place, but the practical real world way of generating very large amounts of low-carbon power reliably is nuclear.

2009 Nov 10 10:37 AM

[jerrydd]

Compared to the heavy metal and radioactive emissions of the coal PV's replace, it's far cleaner, safer than coal. So if they really want to clean up that kind of pollution, make coal illegal.

2009 Nov 11 12:02 PM

[bmccurdy]

I commented over at Greentech about this yesterday. I really find it hard to believe that this is going to be an issue for First Solar. They have a program in place that guarantees they will recycle all of the panels at the end of its working life. So, what's the problem? Are you really expecting the EU to get rid of everything that has Cadmium in it? Even if that metal is locked up in a semiconductor material that will not decompose?

Come on.

2009 Nov 11 04:19 PM

[rd4sndk]

Cadmium is a naturally occuring chemical extracted from prescious metal refining. Is the EU going to ban the "earth"? I find the EU controlled by a hoard of idiots that have done nothing but inacted rules that favor their own interest. America did well ignoring their elitist plans until Obama. God help us to reverse the economic disaster coming--if not too late. With 10.2% unemployment and the anti-business policies of this administration, God help us if Obama is wrong. For the sake of this country and the world, I really really really hope he succeeds inspite of his policies.

2009 Nov 12 11:44 AM

[Mark Anthony]

Ucilia:

On the cadmium issue I am the first one to point it out on Seeking Alpha, about 2 years ago. And no one listened:

seekingalpha.com/artic...

Your notion that CdTe solar panel is not covered is WRONG. The RoHS covered EVERYTHING, unless something is specifically exempted. Any product sold in the EU must fall into one of three categories:

1. It does not exceed the RoHS limit on harmful elements, hence no problem.

2. It DOES exceed the limit, hence is put in a restricted list (BANNED).

3. It does exceed the limit, but an exemption is applied for and granted, so it is not banned. The product will be put into an exempt products list, a very short list as obtaining the exemption is very difficult. There is a 6 page very strict rules what can qualify for an exemption.

The current status of CdTe solar panel is nothing more than a regislative over-sight and a loop-hole. It exceeds the limit, but is put in neither the restricted product list, nor in the exempt product list. It needs to be put into one of those. First Solar itself admitted that obtaining an exemption would be most unlikely.

2009 Nov 23 01:46 PM

[Mark Anthony]

Yes! The earth itself would be BANNED under RoHS regulation if it contains cadmium concentration exceeding that specified by RoHS.

Actually if the earth contains cadmium concentration exceeding the RoHS limit of 100 ppm, LIFE itself will be BANNED on earth. No life could ever survive in such a harmful environment. Fortunately the earth crust contains only 150 ppb, or 0.15 ppm of cadmium, far below RoHS's safety limit.


On Nov 12 11:44 AM rd4sndk wrote:

> Cadmium is a naturally occuring chemical extracted from prescious
> metal refining. Is the EU going to ban the "earth"? I find the EU
> controlled by a hoard of idiots that have done nothing but inacted
> rules that favor their own interest. America did well ignoring their
> elitist plans until Obama. God help us to reverse the economic disaster
> coming--if not too late. With 10.2% unemployment and the anti-business
> policies of this administration, God help us if Obama is wrong. For
> the sake of this country and the world, I really really really hope
> he succeeds inspite of his policies.

2009 Nov 23 01:54 PM