Solar Power May Not be Quite so 'Green'

The Washington Post on Sunday published a a highly disturbing Page 1 story about the Chinese polysilicon producer Luoyang Zhonggui High-Technology Co. which raises huge questions about the status of the solar industry as a provider of green power.

The story says Luoynag Zhonggui has been dumping manufacturing waste - in particular a toxic chemical called silicon tetrachloride - in open fields outside its factory. The Post notes that silicon tetrachloride is highly toxic, and breaks down into chlorine and hydrochloric acid.

The story mentions that Luoyang Zhonggui supplied polysilicon to Suntech (STP); some digging around finds other customers include China Sunergy (CSUN) (here’s a story on an announcement of their relationship from last year), and LDK Solar (LDK), as shown in various SEC filings.

You’d think this could be good news for MEMC Electronic Materials (WFR), one of the few public players in the polysilicon market. But it could be damaging to the industry overall if the solar cell business is suddenly seen as a lot less green than it would seem at first glance.

In Monday’s trading:

• MEMC is down $1.35, or 1.8%, at $72.76.
• Suntech is down $1.32, or 3.9%, at $32.75.
• China Sunergy is down 24 cents, or 3.5%, at $6.64.
• LDK Solar is down $1.45, or 6.5%, at $21.04.

Comments

[User 82064]

The author wants me to believe that because a poly silicon company has a waste removal problem, that solar is now a bad idea?
Did anyone really think there is a manufacturing process anywhere that doesn't leave behind some waste and residue that requires proper disposal or recycling? Is it being suggested that somehow Suntech's sales should fall because the plant manager of a supplier didn't do his job properly?

[chemguy]

The wastes mentioned, chlorine and hydrochloric acid, are not too worrisome. Chlorine is often used to purify water (as in swimming pools), and is processed in the environment to basically harmless products (barring massive escape into the atmosphere). And hydrochloric acid is the acid in one's stomach, again basically harmless in non-massive quantities (as a pure gas, hydrochloric acid is quite caustic). As suggested by the earlier comment, these chemicals are readily cleaned up, and shouldn't really harm the solar power industry, even if sensationalized early on.

[tessant]

savitz has it out for the solars. in time they will tweak their processes...stock overreacted today to say the least. if you are interested in solar, come check out the social network I created. Dload reports, discuss alt energy.

scott
growthportfolio.ning.c...
"the facebook of investing"

[bluesmoke]

Everybody's an expert. In this case, it's the commenters who are correct. If you can't provide responsible journalism, please find something else to do and not waste our time. Mr Savitz, you're making a fool of yourself.

[simon2008]

if aboriginal from the plant saw this story, they all feel funy because of magnifying fact.

[maxbid]

Eric, why not start your article by admitting that you are a solar basher.

Oh yea, get a life too.

[Tom B]

I take a little acid-- which you can neutralize, if China ever decides to put in civilized environmental standards-- over carbon dioxide and MERCURY emissions from coal. You eat fish, Eric?

[Tom B]

"I take a little acid" That is, I WILL accept a little acid (hydrochloric).

[widicusf]

China does this with virtually every industry.
Buy Suntech on weakness...it will be squeezing the market very soon with price cuts.

[REBEL]

Whether or not you agree with this type of journalism, realize that it has the effect of driving down prices of stocks mentioned - regardless of the merits of the article. Don't let an article that is full of "it" sway you into making faulty investment decisions. Use this as an opportunity to buy; then when the US finally realizes we MUST HAVE alternative energy this buying opportunity will be much appreciated.

[alpha24seven]

Damn all you solar foot soldiers must believe the photos and commentary from the Chinese residents holding their babies are all made up. Some big cabal to "get solar".

You people sound childish. You actually remind me more of the type of personality associated with eco-terrorists.

Production of solar grade Si is nasty. The Chinese have a LONG standing history of not giving a damned about the environment. Why are you all so shocked and in such disbelief? Why do you think they can produce for less anyways?

Like I said earlier -- childish. Grow up...

[gebby]

can you guys at barrons ever write a positive article.

[garykline]

Both the Washington Post and Eric Savitz neglected to research ScienceNews,
Vol. 173, No.9 (and the 15 March Environmental Science & Technology).
Solar keeps getting greener and greener.