DayStar Technologies Gets Closer To Public Funding

Local newspapers are not usually a great source for those who are market savvy. Usually, local newspaper business sections have a lot of content that is recycled from other news sources, dated and lacks real time information that can actually be useful and actionable. But occasionally there is a local reporter who brings a story that is insightful and the particular information that is presented can be acted upon. A solar energy company that we have been following, DayStar Technologies (DSTI), was highlighted in an article on Friday written by Larry Rulison in the Albany Times Union.

Though the main thrust of the article was about Evergreen Solar Inc. (ESLR), it highlighted an important aspect of the state of solar energy; companies in the industry are becoming sought after more by state and local governments. Just last week, Rulison confirmed that New York economic development officials tried to entice Evergreen to build a large-scale manufacturing facility in the state. Evergreen eventually accepted an offer from Massachusetts officials to build a $150 million factory with $44 million in grants and loans.

DayStar was originally lured to the Empire State in 2004 with $11 million in tax incentives. It is currently seeking funding of up to $30 million to build a manufacturing facility that would produce solar cells. However, the company has only managed to secure a private placement for about $5 million. This is far short of the capital necessary for the project.

Earlier in the year, leading supplier of energy and aluminum Hydro invested in Ascent Solar Technologies Inc. (ASTI) to the tune of $9.2 million. Hydro is interested in the company's thin-film photovoltaic systems used in solar panels and the funds will be instrumental in a soon to be built production plant producing such photovoltaic systems.

While it is puzzling that DayStar has not received additional funding in an industry in which its technology is now becoming more widely adopted, state assistance in the form of loans could be an alternative that would lift DayStar shares. The company has been working toward that end and news that New York attempted to bring Evergreen into the state is encouraging and signals the commitment to increasing the availability of solar power energy in the state, boosting the chance that DayStar can again be the beneficiary of public funding.

DSTI 1-yr chart:

Comments

[ytterbius]

At this point, DSTI is a losing proposition. They've been running on no production for a long time and don't seem destined to make it happen. There are plenty of competitors who have proven themselves, or who are at least moving forward, that it seems pretty unwise to risk any money on Daystar at this time.


ASTI is in a bit of a similar spot, but with the backing of Hydro they're sure to get serious very soon and have reasonably certain financial backing for projects. It seems that I've read that they do have a facility in the works, though I don't know the timeframe. Also, ASTI seems to be reasonably connected, as they have announced several Government funded research contracts over their history. I've seen a reference (rumor) of $2 / Watt in ASTI's future, which would put their cost at a level competitive with First Solar's current product.