Japan | Green World Investor

Itochu and Toshiba increase their Green Investments through multiple Joint Ventures

3 Jul, 2010

Toshiba,the leading Japanese Electronics Producer is diversifying into the Green Industry like its counterparts in the rest of the world.Samsung,NEC,Panasonic,LG,GE and Siemens have all been strongly investing in the Green Industry due to its strong growth prospects.Each Conglomerate is jockeying for an advantageous position in the various sub-sectors of this still nascent Industry .Toshiba which trails only Areva in Nuclear Energy Equipment Marketshare is also investing in the Battery Sector.Note there are a number of leading Japanese companies with strong technological and manufacturing strengths in Batteries with Panasonic being the No.1 Player.NEC and Sony are also vying for a piece of the pie along with smaller players like GS Yuasa.

Toshiba signs JV with Mitsubishi

Toshiba had earlier announced it entry into the Battery sector winning a deal to supply Lithium Batteries for Honda’s Motorcycles.With the new JV with Mitsubishi Motors to manufacture batteries in Japan,it has further boosted its capability in the sector.Note Japanese companies usually partner with each other to combine their technological capabilities.This trend can be seen in almost all Technology Sectors like Semiconductors,Electronics and Smartphones.The competition in the Battery sector is already intense and Toshiba’s entry will only serve to increase it.

Toshiba to develop batteries for electric vehicles – Yahoo

Japanese electronics maker Toshiba Corp. said Friday it’s jumping into the battery business for electric vehicles in a development deal with Mitsubishi Motors Corp.It’s the first EV battery deal with a major automaker for Toshiba, which already makes batteries for laptops and cell phones, said company spokesman Ken Shinjo. Production will start sometime next year, in a new facility in Niigata, northern Japan, according to Toshiba.The plant’s production capacity is expected to grow to a million cells — the unit for counting rechargeable batteries — a month by March 2012, said Shinjo. Batteries may also be used for power storage in ecological “smart grids.”Toshiba’s Japanese rival Panasonic Corp. supplies batteries for Toyota Motor Corp., the world’s top automaker, while NEC Corp. does it for Nissan Motor Co. Sanyo Electric Co., a Panasonic subsidiary, has deals with Volkswagen AG, Honda Motor Co. and Toyota.

Itochu enters Green Industry through Wind Energy and Lithium Partnerships

Itochu which is one of the world’s biggest trading companies has also started making strategic investments into Green Industry like its more famous Japanese cousins.Itochu had earlier signed a deal with global Wind Energy leader General Electric to jointly develop a wind farm in Oklahoma.Though this investment is relatively small,there is strong potential for a number of wind project developments in the future.Itochu is further diversifying by buying a 20% stake in a US start-up which will extract Lithium from Waste-water used in Geothermal Energy. Lithium is supposed to be the “Oil of the Future” with its usage expected to increase exponentially.Lithium has the best chemistry in terms of energy density and weight amongst different battery chemistries.Though its price is currently quite high,it is expected to fall in the future makings its usage ubiquitous in Electric Vehicles . While there is currently no shortage,prices of Lithium are expected to increase sharply in the future as it finds more uses in Grid Storage etc.

GE, Itochu tie up on wind power projects – Reuters

General Electric and Japanese trading house Itochu Corp have agreed to cooperate on investment in large wind and other renewable energy projects, Itochu said, boosting Itochu’s share price by nearly 5 percent.GE, the largest U.S. conglomerate and a top maker of wind power generators, and Itochu will jointly take a majority stake in a 30 billion yen ($326 million) wind power project in Oklahoma, Itochu said.The two firms also plan to cooperate in another large wind energy project being planned in the United States, Itochu said.

Itochu to take part in U.S. lithium venture: report – Reuters

Japanese trading house Itochu Corp is taking part in a U.S. project to extract lithium from wastewater used in geothermal power generation in California, the Nikkei business daily reported on Saturday.Itochu has taken a roughly 20 percent stake in Simbol Mining Corp, spun off from a research institute under the U.S. Department of Energy, for what is believed to be several billions of yen in return for exclusive sales rights in Asia, excepting India, the Nikkei added.

Solar Leader Sharp shifting its Focus from Crystalline Solar to Amorphous Silicon Thin Film Technology

2 Jul, 2010

Japan,Sharp,Solar Energy,Solar Photovoltaic Energy

Sharp,the Japanese Zaibatsu known more for its Electronics Products is also the world’s No 1 Company in terms Solar Module Revenues.Sharp has been the solar world leader since the past 4-5 years despite stiff competition recently from upcoming Chinese Crystalline Solar (c-Si) players and Thin Film Leader First Solar.The Chinese have gained almost 50% of the world’s marketshare in Q409 from a non existent share in 2006 boosted by their low cost production .First Solar through its world beating Cadmium Tellerium(CdTe) Thin Film Technology has also managed to vault itself to the No.2 position in 2009.

Japanese Solar Companies Losing Marketshare to Cheaper Asian Rivals

Sharp’s c-Si division is not cost competitive with the Chinese and Taiwanese companies as its cost structure is almost 30-40% higher than the cheapest Chinese producers.Though the quality of Sharp’s crystalline silicon modules is considered much better,the cost difference has become too big in a rapidly commoditizing industry.Sharp has managed to retain its No.1 position mainly due to its large captive home market of Japan.In other places like US and Europe it has rapidly lost marketshare to aggressive Chinese companies like Trina Solar,Yingli and Suntech.Other Japanese Solar Heavyweights like Kyocera,Panasonic-Sanyo and Mitsubishi have suffered even worse marketshare losses.Lack of focus and high costs have combined to move most of the Japanese to lose out in world solar rankings to the Chinese.These companies have tried to improve their cost competitiveness through outsourcing of cell production to Taiwanese cell companies like Motech,DelSolar and others.However the sharp decline in module prices have made even this strategy unsuccessful

Thin Film Technology sees Massive Attrition

Thin Film Technology has face a difficult recent 2-3 years as sharp decline in Poly Silicon prices have led to more than 50% decline in the competing c-Si module prices.Amorphous Silicon Technology has seen many casualties as a-Si equipment leader Applied Materials much heralded SunFab turneky a-Si faces a life and death situation.Other players like Oerlikon have also not fared well.While companies like Masdar are abandoning their Thin Film plans,Sharp has started shipping a-Si modules from its 1 GW capac ity plant in Sakai.With its established distribution strengths and technological abilities in LCD Technology,Sharp is one company that can survive the c-Si onslaught.With most of the a-Si thin film competitors bankrupt or in a moribund state,Sharp can capitalize to completely capture this space.However the cost structure of Sharp is not clearly known right now to make a clear call on how this will turn out.Also a 10% efficiency while decent for a-Si technology fall far short of the 13% claims by CIGS startups like Miasole.

Sharp starts production at 1GW capacity thin-film plant- PV-Tech

With an initial production capacity of 160MW, Sharp has started volume production at its 1GW a-Si thin-film plant in Sakai City, Osaka Prefecture, Japan. According to the company, the new facility will be a model plant for future Sharp thin-film solar cell plants around the world.A new tandem-junction a-Si module with ~10% conversion rates will also enter volume production at the new plant in Japan.

Sharp Supplies Thin-Film Solar Cells for Solar Power Generation Plant in the Kingdom of Thailand – MarketWatch

Sharp Corporation has signed an agreement with NED(2) to establish one of the world’s largest(1) solar power generation plants with a power generation capacity of 73 MW, and to supply thin-film solar cell modules and surrounding systems for the plant. The construction of the solar power generation plant will start in July 2010 and the operation is planned to start by the end of 2011.

Thin-film solar cells are optimal for use in a high-temperature climate, compared to crystalline solar cells. Sharp’s experience in the mass production of thin-film solar cells has enabled Sharp to take part in this project. The thin-film solar cell modules to be used in the power generation plant will be supplied partially from Sharp’s solar cell plant at GREEN FRONT SAKAI in Sakai City, Osaka Prefecture, Japan, which started operation in March 2010

MiaSolé Sets World Record for Highest Efficiency of Commercial Scale Thin-Film Solar Modules.

MiaSolé, the leading manufacturer of copper indium gallium selenide (CIGS) thin-film photovoltaic solar panels, today announced that the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) independently
confirmed the 13.8% efficiency of its large area production modules (one square meter in size). “We are pleased with our strong continued progress,” said Dr. Joseph Laia, CEO of MiaSolé. “The modules that we ship in 2011 will have efficiencies greater than 13%. The only reason that we are not shipping these modules today is that we are awaiting the completion of our UL certifications.”

Green Investing in Japan – Panasonic Discovers a Green Goldmine in Sanyo Acquistion

11 Jun, 2010

Electric Vehicles,Japan,Sharp,Solar Energy

Panasonic hits upon a Green Goldmine in Sanyo

Panasonic has hit upon a Green Goldmine with its acquisition of Sanyo .It is now capitalizing on Sanyo’s Solar and Energy Storage Technology by making huge investments in this space.Sanyo had been already been metamorphizing into a Green company from an Electronics company before Panasonic bought it for a very cheap price.Sanyo had never found much success in the cut-throat Electronics Sector with Operating Margins very near to break-even.However under Panasonic it could become a potential leader in the extremely fast growing Green Sectors.The Solar Industry has been growing at a scorching 50% CAGR over the last 10 years while Energy Storage is also entering a parabolic growth phase driven by Electric Vehicles and Grid Storage requirements.

Panasonic Trails Sharp and Chinese Companies in Solar Rankings

Panasonic “HIT” Technology is known for its high quality and efficiency.It rivals Sunpower in being the highest efficiency commercially available Solar Cell.However a Lack on management initiative and execution has pushed the Japanese behind the Chinese Solar companies in Solar Rankings.But recent investments by Sharp and Panasonic seems to mark a turnaround in their strategies.Though these companies trail the Chinese in Cost ,their advantages in Technology could again push them to the top slots.

Panasonic rapidly expanding Green Buildings and Solar Business

Panasonic has completely changed its strategy to become a major Green Player targeting a Major Percentage of Sales in the future to come from Green Products.Panasonic which is the world’s biggest Plasma TV producer is going to spend $1 Billion on Green Building investments.Panasonic will combine its Green Strengths with Sanyo’s to sell a complete Eco-Friendly Home complete with Solar Power,LED Lighting and Energy Storage and Efficiency capabilities.In Solar where Panasonic is the No. 3 player in Japan behind Sharp and Kyocera ,it is speeding up the expansion of solar capacity.It will spend more than $500 million aiming to triple its energy solutions business in Europe to 800 Million Euros by 2016.

Panasonic a World Leader in Energy Storage but Competition Increasing

Panasonic has almost a 30% share of the world market in Batteries.Sanyo has a huge presence in supplying Lithium Batteries for Laptops and Cellphones.It is also winning customers for NiMH batteries used for Electric Vehicles.Major automobile producers like Honda,Toyota ,Ford and Volkswagen are already customers of Panasonic.However Competition is fierce in the Battery Segment.Companies like NEC,Toshiba are making major investments while startups like A123 Systems,Ener1 are also making big efforts .

Panasonic Valuation

Like other Japanese conglomerates, Panasonic ha Low Margins bordering close to zero.It is quite cheap on a EV/Sales basis at 0.3 times and has almost no debt.Its stock price is trading near a 52 week low at $12.67 (ADR).If it manages to even eke out a 10% Net Margin from its Green Business,Panasonic has the potential to be a multibagger.However this will require Management to execute solidly in its strategy of becoming a major player in the Green Industry.

Panasonic Will Invest $1 Billion in ‘Green Home’ Plan – Bloomberg

Panasonic Corp., the world’s biggest plasma-TV maker, will invest $1 billion by 2012 in a plan to make its principal business equipping homes and buildings with solar power and energy-saving technologies, the president said.The move focuses on solar-panel and energy-storage technology that Panasonic will gain from its purchase of Sanyo Electric Co., coupled with systems that Panasonic has invented, President Fumio Ohtsubo said yesterday in a New York interview.

“This is what Panasonic has to do,” said Osamu Hirose, an analyst at Tokai Tokyo Securities with an “above average” rating on the stock. “Wherever you look, consumers in developed and developing markets are interested in environmental products.”

“Our growth is not enough compared to Samsung,” Ohtsubo said. “So we want to change our fighting ring from our current categories to a different field.”

Another Japanese Zaibatsu NEC Plans a Major Foray in the Green Industry

20 May, 2010

Electric Vehicles,Japan,Sharp,World Economy and Markets

Conglomerates across the world have started signaling their attention to become big players in the Green Industry which is predicted to be one of the biggest in the coming decade.Samsung has planned a massive $21 billion spending over the next decade while Toshiba is entering into the Energy Storage Area. NEC a Japanese Zaibatsu which has seen its revenues and margins erode over the last few years is planning a major foray in the Green space as well. The Lithium Battery market has become crowded with a startups and established companies vying for marketshare in this nascent market.Japanese companies have started becoming aggressive in the Green Industry as can be seen from the list below

Panasonic with the acquisition of Sanyo has a large marketshare in the Solar and Battery segments
Sharp is the 2nd largest producer of solar modules and is expecting 50% growth in 2010
Toshiba plans to make batteries for electric vehicles.Its already one of world’s top 3 producers of nuclear reactors
Kyocera is a big solar players as well and planning major expansion as well
Mitsubishi remains a bit player . However is involved in making poysilicon and solar panels

Japanese automakers also have been at the forefront of innovation in Clean Transportation with Toshiba leading the way with its iconic hybrid Prius.Nissan’s Leaf is supposed to be one of the best new electric vehicles with Honda also firming up its plan in the PHEV segment

NEC to Invest 100 Billion Yen in Energy, Batteries – Bloomberg

NEC Corp. said investments in its energy business will reach $1.1 billion over the next eight years, as Japan’s biggest maker of personal computers aims to reinvent itself after a decade-long slide in sales.Spending on factories that make parts for batteries supplied to Nissan Motor Co. and smart-grid equipment will rise to 100 billion yen ($1.1 billion) by the year ending March 2018, including 50 billion yen this year announced earlier, President Nobuhiro Endo said in an interview yesterday at the company’s Tokyo headquarters.

Growing Battery Market

The global market for lithium-ion batteries used in electric cars will grow to 1.7 trillion yen in 2020 from “almost nothing” in 2009, Daiwa Securities Group Inc. wrote in a March report.The company forecasts annual sales from its energy business will reach 100 billion in the year ending March 2013; revenue will triple in the five years after that, as the company expands its list of battery customers.

NEC will also look to buoy sales by introducing a handheld tablet similar to Apple Inc.’s iPad in October, Endo said. In the next three years, the company plans to sell 1 million units of the device designed jointly with Casio Hitachi Mobile Communications Co., which will merge with an NEC unit in June.

The rise of the Chinese and the fall of the Japanese in the Solar Rankings

7 May, 2010

China,Japan,Renewable Energy,Solar Energy

IMS has released the top 10 suppliers of solar panels for 2008-2009.What is striking about the the rankings is that the Chinese solar companies have improved their ranking in the top 10 , all the Japanese companies have had their rankings decreased . The low cost capabilities of the Chinese has led to this change.I expect we might see a couple of more changes in 2010 and 2011 where we might see some of the Japanese companies like Sanyo and Kyocera entirely exit the rankings.Solarworld is the lone European player but again not for long I suspect. Unless the US and Japanese come up with technology innovations quickly they will see their share erode

First Solar became largest PV module producer in 2009, says IMS – Digitimes

Leading thin film manufacturer First Solar topped the rankings list for PV module suppliers in 2009, surpassing all of its crystalline rivals to ship more than 1GW of modules and become the industry’s largest supplier, according to the latest analysis from IMS Research.

Although the top-10 suppliers did not change in 2009, Suntech – the leader in 2008 – fell to second place, followed by Sharp at third. Trina Solar climbed two places, increasing its annual shipments by nearly 90%. All three of the Japanese suppliers in the top 10 (Sharp, Kyocera and Sanyo) fell in ranking, and for the first time, modules sold by US-based suppliers exceeded those from Japanese suppliers.

Sam Wilkinson, research analyst with IMS Research’s PV group, commented, “2009 was an incredible year for PV module suppliers, with the top-10 companies’ shipments growing by 75%. This is an amazing result given how poor the outlook had looked just over one year ago. Although many others did not share in this success, this measure alone is an indicator that the PV module market grew far more than had been expected in 2009, with shipments far exceeding installations.”

Although 7.5 GW of installations were completed and connected in 2009, IMS Research estimates that shipments of PV modules were far higher. Shipments exceeded installations due to the record amount of modules shipped in the final quarter of the year to serve installations completed in the first quarter of 2010 in booming European markets such as Germany, Italy, France and the Czech Republic.

IMS: Top-10 PV module suppliers, 2008-2009

Company name 2009 ranking 2008 ranking

First Solar 1 3

Suntech Power 2 1

Sharp Electronics 3 2

Yingli Green Energy 4 4

Trina Solar 5 7

Sunpower 6 6

Kyocera 7 5

Canadian Solar 8 9

SolarWorld 9 10

Sanyo Electric 10 8

Source: IMS Research, compiled by Digitimes May 2010

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