Eco Innovator November 2011

Equity Capital

Dyesol Product in Market by 2014-15

Listed built-in photovoltaics developer Dyesol expects to have a commercial glass product with built-in dye solar cell photovoltaics available in 2014-15, and a commercial roofing product with built-in photovoltaics ready by 2015-16.

Founder and director Sylvia Tulloch and president Dyesol North America Marc Thomas also told a retailinvestorconference that the markets for both products are huge.

The flat glass market is 6 billion square metres per annum and growing at 5 per cent, and the building component of this is 4.2 billion square metres. The addressable market for Dyesol's product is 1.7 billion square metres and worth around $25 billion per annum.

The coated steel roofing market is over 1 billion square metres per annum and growing at 7 to 8 per cent. The potential for dye solar cell coated steel cladding is 20 per cent, an addressable market of 200 million square metres worth $30 billion. This would be equivalent to over 10 GW installed per annum.

For technical reasons the glass product is likely to have a higher efficiency than the roofing product.

Ms Tulloch said Dyesol has a burn rate of about $1 million per month. It has raised $70 million so far and raised another $30-40 million before its Dyesol incarnation. It has "not much debt" as it doesn't believe in debt.

Dyesol is listed on the ASX and the Frankfurt Stock Exchange. About 30 per cent of its shareholders are German retail investors and another 30 per cent Australian retail investors. About 15 per cent is held by institutions, and the balance by founders and staff.

Dyesol has a "Capital-Light" business model where it owns the materials technology IP, licenses it to manufacturing partners, and leverages the partnerships to create massive demand for its materials, typically through exclusive materials supply agreements.

Its key strategic partnerships are with leading industrial companies Tata Steel, the world's number 10 steel manufacturer and Europe's number 1 coated roofing manufacturer; Pilkington, which is the world's leading glass/window manufacturer; and Merck, which is the world's number 1 manufacturer of specialty chemicals.

It is also looking at partnerships for the auto, indoor, and electronics sectors and possibly the military.






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