The Bull: Will Turnbull Boost Renewable Stocks?

19 Oct 2015

Will Turnbull Boost Renewable Stocks?

"It would appear even without a boost from the new leadership, wind and especially solar power have solid growth prospects."

"Dyesol Limited (DYE) boasts a highly disruptive technology that has as yet failed to deliver.  The technology here is incredibly complex for those of us who lack an advanced degree in chemistry.  Suffice it to say this company is in the forefront of research and development of third generation photovoltaic (solar) cells.  If you have the time you can read up on Dye-Sensitized Solar Cells (DSSC) and Perovskite Solar Cell (PSC).  If not, here is a lay person’s understanding of what they do.

They transform the cells into coatings to be applied to a variety of materials typically used in residential and commercial construction – steel roofs, cement, exterior ceramic tile, paint, and glass.  Through the magic of photosynthesis, sunlight striking the coated product is transformed into energy.

Dyesol has an impressive list of partners and funders.  On 1 October the company announced it had secured $449 thousand dollars in funding for its PSC development from the Australian Renewable Energy Agency (ARENA).  The FY 2015 Annual Report released on 28 August came with positive pronouncements about the future of solar energy.  This may prove true, but DYE investors have been there before.  In 2013 the company announced a major breakthrough in the energy efficiency of its solar cells along with its intention to move rapidly into the commercialization phase.  The share price shot up over 100% and investors are still waiting for significant revenue and profit from commercial operations.

In a May 2015 interview with the Finance News Network, the Dyesol CEO stated the company expects to spend between $7 and $8 million dollars this year on development costs, with a possible commercialisation demonstration project in 2016.  The company relies on government help and could benefit if the new leadership goes ahead with increased funding for the Renewable Energy Sector.  Imagine a world where a building roof produces electricity.  This one is definitely one to keep watching."