Chuck Provini on the significance of eliminating silver from solar cells
This is a preview tot he weekend show. We just recorded a segment with Chuck Provini, CEO and President of Natcore on the financial benefits of eliminating silver from solar cell production.
See the news release issued yesterday below.
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Natcore Technology Develops Solar Cell That Eliminates Use of Silver
Most Substantial Improvements In 60 Years Continue Drive to Lower Cost of Solar Energy
Rochester, NY — (August 18, 2015) — When Natcore Technology Inc. (TSX-V: NXT; OTCQB: NTCXF) announced the development of a breakthrough solar cell structure on July 9, they indicated that the new low-cost configuration might allow for the elimination of silver from mass-produced solar cells.
In the intervening weeks, that long-time goal of solar scientists has been achieved.
Working in their Rochester R&D Center, Natcore scientists have built an all-back-contact silicon heterojunction cell structure in which silver has been completely eliminated. It has been replaced by aluminum.
This substitution has been accomplished with no loss of performance.
When sunlight hits a silicon cell, it generates electrons. Ever since practical solar cells have been made – about 60 years ago – silver has been used as a conductor to collect these electrons in order to form a useful electric current. Silver was originally chosen for this role because it is a high-conductivity metal. The average solar panel uses about one-half of an ounce of silver.
Silver represents >48% of the metallization cost of a solar cell, or about 11% of the total raw material cost of a solar module.
The cost saving realized by switching from silver to aluminum are important. That’s because silver, while highly conductive, is also high-cost. At today’s prices, silver costs about $15.28 per troy ounce. The same quantity of aluminum costs $0.05, about 0.3% of the cost of silver.
Even considering that it would be necessary to use twice as much aluminum as silver in order to have an equal amount of conductivity from cell to cell, the raw material cost of aluminum would still be just 0.6% of the direct material cost of using silver in the cell.
Natcore’s novel design allows for aluminum to be easily substituted for silver. Natcore scientists used their proprietary laser technology to apply contacts to the rear of the cell as well as for other critical aspects of the process.
“Within the past month, our scientists have wrought historic changes in the architecture and the economics of the solar cell,” says Chuck Provini, Natcore president and CEO. “Solar cell manufacturers will no longer be subject to the vagaries of the silver market. We are now able to produce solar cells at a substantial cost savings thanks to improvements achievable by our proprietary laser technology. We expect to file a provisional patent application within the next two weeks.”
Roughly 1.5 million ounces of silver are currently required to generate 1 GW of solar power. That demand translated into roughly 60 million ounces of silver in 2014, or about 6% of the total demand for the metal. Before Natcore’s achievement, that demand was projected to rise to 15% of the total market in 2018.
About Natcore Technology
Natcore Technology is focused on using its proprietary nanotechnology discoveries to enable a variety of compelling applications in the solar industry. Specifically, the company is advancing applications in laser processing, black silicon and quantum-dot solar cells to significantly lower the costs and improve the power output of solar cells. With 59 patents (24 granted and 35 pending) Natcore is on the leading edge of solar research. www.NatcoreSolar.com
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Statements in this press release other than purely historical factual information, including statements relating to revenues or profits, or Natcore’s future plans and objectives, or expected sales, cash flows, and capital expenditures constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in Natcore’s business, including risks inherent in the technology history. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. Except in accordance with applicable securities laws, Natcore expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. Neither the United States Securities and Exchange Commission (“SEC”), the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) opines as to, nor accepts responsibility for, the adequacy or accuracy of this release.
Not sure that is true when the difference between the price of silver and the price of aluminum is so huge.
My personal feeling (not investment advice) is that the implications of this news release will be huge.
lawrence, cost is THE driver.
The major saver is to cut down the usage of silver instead of getting rid of it. It has been done in the last 10 years. The usage has been cut down 90% and has been there for last few years. China Japan and Korea have put in a lot of effort to achieve this. The amount is so low now the cost is negligeable.
Appreciate the input, Lawrence. I did not know that and will talk with Chuck about it.
It’s my understanding a large portion of the cost of a solar panel is the labor, etc. in getting the panel installed. That said, I imagine solar cell manufacturers will jump at the chance to eliminate silver.
Assuming that it is efficient Mr. Feibish!
Each solar panel has 15 to 20 grams of silver – at current prices that’s about $20 per panel. It’s obvious that eliminating silver will create a huge savings in the manufacturing process. This achievement by Natcore is ground breaking.
So funny, for a long time silver bugs were touting just how huge silver demand was for solar. Anyone remember bloggers saying the amount of silver used wouldn’t affect the price of panels?
With the world economy slowing, demand for silver is dropping, with companies finding ways to eliminate silver altogether people might have to question future demand for silver.
Well that is true, but I still put silver into the same category as gold. (Acting as a barometer.)
Well Al, I agree with owning silver, I was just tying to play a little devils advocate.
For myself, I have all the silver I want to own, I don’t need anymore other than birthdays weddings xmas etc. I like to give silver.
Anyway, I don’t really care what happens to price, Im not selling.
It just looks to me, Doc could be right, a long slow grind down, and it may not have to do with tehnicals or charts, it could be simply demand drops as the economy slows.
bb, we obviously buy and hold for the same reason!
Ha! Maybe could this be the bad news that heralds the bottom of the silver bear? I don’t really think so but you never know.
In 2000, the bad news was silver’s elimination in photographic use, as digital cameras swept film cameras away. As that happened, the silver bull market was on its way.
In the end, spikes in silver price are down to monetary demand, 1980 and 2011 or merely to speculative demand as a hedge against monetary madness or just a bandwagon of speculation on ‘the greater fool bill buy it at a higher price’ theory.
Silverbugs will say that it is good news because it frees up silver for use as money or some other asinine comment.
(My moniker ‘Silverbug Dave’ belies the fact that I am not really a silverbug, although I was when I first used it in around 2009).
I am Silverbug Dave.
To me the leverage factor simply makes a lot of sense!
IF this story is true, it spells the death knell for the price of silver. What is the price of silver with no industrial demand????? Remember if he can make Aluminum as efficient a conductor in solar panels he can make it as efficient a conductor in EVERYTHING that uses silver for conductivity! It’s price without industrial demand sure ain’t anywhere near $15 an ounce. Maybe $5 an ounce and every primary silver miner would go bust.
Is the price action on Friday a portend to come? Gold Up. Silver down. People getting afraid and starting to bail on silver???????
This is scary stuff for anyone who has a substantial investment in silver, because of the horrible possibilities if true.
You make an interesting point Icarus. Although there are many other uses for silver.
Aluminum does not hold up so well under stress. Remember aluminum home wiring? Like to hear more about the durability/lifespan of the new aluminum based solar panels versus silver.
I don’t think people will be interested when silver is so low.