Battery maker seeks to raise $225 million in IPO

By MarketWatch


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A123 Systems, an eight-year-old battery builder launched by engineers from the Massachusetts Institute of Technology, could attain a market capitalization of nearly $1 billion when it goes public later this month.

That's not bad considering the company has yet to turn a profit.

Watertown, Mass.-based A123 Systems plans to offer 25.7 million shares at an estimated price range of $8 to $9.50 a share, in a bid to raise about $225 million with underwriters Morgan Stanley and Goldman Sachs.

A123 Systems is banking on a surge in business tied to a rise in electric vehicles, along with successes including adding Chrysler to its customer list and a $249 million grant under the federal stimulus package. Among its investors are General Electric Co. (GE), Qualcomm Inc., Motorola Inc. and North Bridge Venture Partners.

With a total of 100.4 million shares outstanding after the IPO, A123 would carry a market cap of about $880 million if the deal prices at $8.75 a share, the midpoint of its estimated price range.

It's expected to price its deal next week for trading on the Nasdaq under the symbol "AONE."

John Fitzgibbon of IPOscoop.com said he expects A123 to gain about $1 a share in its opening day, based on interviews with IPO bankers. "People think they're riding the green tech wave," he commented.

A123 Systems - which designs and develops batteries and battery systems for BMW, Chrysler, GM and other manufacturers and suppliers for multiple-passenger vehicle models - marks the second U.S.-based green technology company to emerge in the IPO market this year after the debut of wind-turbine maker Broadwind Energy Inc. on April 8.

Based on data from IHS Global Insight, the number of hybrid electric, plug-in hybrid and electric cars will grow from 19 models in 2009 at an annual production rate of at least 20,000 vehicles to more than 150 models in 2014 and more than 200 models in 2019, A123 said in its IPO filing.

A.T. Kearney projects the market will grow to approximately $21.8 billion by 2015 and $74.1 billion by 2020, stoked by governmental regulation, emerging powertrain technology and rising consumer demand.

Founded in 2001, A123 Systems' proprietary "Nanophosphate" technology was initially developed at MIT. Two of the company's three founders listed on its Web site hail from the school, including Yet-Ming Chiang, who also co-founded American Superconductor Corp. in 1987.

The company reported a loss of $40.7 million on revenue of $42.9 million in the six months ended June 30. In the year-ago period, it lost $33 million on revenue of $21.9 million. A123 lost $81 million in 2008 and $31 million in 2007. It also reported 1,672 employees as of August 31, up from 227 at the start of 2007.

Black & Decker Corp. and marquee auto brand Mercedes have been major customers. For the six months ended June 30, business from BAE Systems PLC represented 37% of A123's revenue.

In April, the firm raised $69 million in venture financing with participation from General Electric. GE executive Mark M. Little now sits on the company's board.

On August 6, A123 won $249 million in federal stimulus funds, which the company plans to use to build factories for making batteries.

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3 Reasons Why Cheap Abundant Electricity Is Getting Closer To Reality

Renewable Energy Breakthroughs drive quantum dots solar efficiency, Air-gen protein nanowires harvesting humidity, and cellulose membranes for flow batteries, enabling printable photovoltaics, 24/7 clean power, and low-cost grid storage at commercial scale.

 

Key Points

Advances like quantum dot solar, Air-gen, and cellulose flow battery membranes that improve clean power and storage.

✅ Quantum dots raise solar conversion efficiency, are printable

✅ Air-gen harvests electricity from humidity with protein nanowires

✅ Cellulose membranes cut flow battery costs, aid grid storage

 

Science never sleeps. The quest to find new and better ways to do things continues in thousands of laboratories around the world. Today, the global economy is based on the use of electricity, and one analysis shows wind and solar potential could meet 80% of US demand, underscoring what is possible. If there was a way to harness all the energy from the sun that falls on the Earth every day, there would be enough of electricity available to meet the needs of every man, woman, and child on the planet with plenty left over. That day is getting closer all the time. Here are three reasons why.

Quantum Dots Make Better Solar Panels
According to Science Daily, researchers at the University of Queensland have set a new world record for the conversion of solar energy to electricity using quantum dots — which pass electrons between one another and generate electrical current when exposed to solar energy in a solar cell device. The solar devices they developed have beaten the existing solar conversion record by 25%.

“Conventional solar technologies use rigid, expensive materials. The new class of quantum dots the university has developed are flexible and printable,” says professor Lianzhou Wang, who leads the research team. “This opens up a huge range of potential applications, including the possibility to use it as a transparent skin to power cars, planes, homes and wearable technology. Eventually it could play a major part in meeting the United Nations’ goal to increase the share of renewable energy in the global energy mix.”

“This new generation of quantum dots is compatible with more affordable and large-scale printable technologies,” he adds. “The near 25% improvement in efficiency we have achieved over the previous world record is important. It is effectively the difference between quantum dot solar cell technology being an exciting prospect and being commercially viable.” The research was published on January 20 in the journal Nature Energy.

Electricity From Thin Air
Science Daily also reports that researchers at UMass Amherst also have interesting news. They claim they created a device called an Air-gen, short for air powered generator. (Note: recently we reported on other research that makes electricity from rainwater.) The device uses protein nanowires created by a microbe called Geobacter. Those nanowires can generate electricity from thin air by tapping the water vapor present naturally in the atmosphere. “We are literally making electricity out of thin air. The Air-gen generates clean energy 24/7. It’s the most amazing and exciting application of protein nanowires yet,” researchers Jun Yao and Derek Lovely say. There work was published February 17 in the journal Nature.

The new technology developed in Yao’s lab is non-polluting, renewable, and low-cost. It can generate power even in areas with extremely low humidity such as the Sahara Desert. It has significant advantages over other forms of renewable energy including solar and wind, Lovley says, because unlike these other renewable energy sources, the Air-gen does not require sunlight or wind, and “it even works indoors,” a point underscored by ongoing grid challenges that slow full renewable adoption.

Yao says, “The ultimate goal is to make large-scale systems. For example, the technology might be incorporated into wall paint that could help power your home. Or, we may develop stand-alone air-powered generators that supply electricity off the grid, and in parallel others are advancing bio-inspired fuel cells that could complement such devices. Once we get to an industrial scale for wire production, I fully expect that we can make large systems that will make a major contribution to sustainable energy production. This is just the beginning of a new era of protein based electronic devices.”

Improved Membranes For Flow Batteries From Cellulose
Storing energy is almost as important to decarbonizing the environment as making it in the first place, with the rise of affordable solar batteries improving integration.  There are dozens if not hundreds of ways to store electricity and they all work to one degree or another. The difference between which ones are commercially viable and ones that are not often comes down to money.

Flow batteries — one approach among many, including fuel cells for renewable storage — use two liquid electrolytes — one positively charged and one negatively charged — separated by a membrane that allows electrons to pass back and forth between them. The problem is, the liquids are highly corrosive. The membranes used today are expensive — more than $1,300 per square meter.

Phys.org reports that Hongli Zhu, an assistant professor of mechanical and industrial engineering at Northeastern University, has successfully created a membrane for use in flow batteries that is made from cellulose and costs just $147.68 per square meter. Reducing the cost of something by 90% is the kind of news that gets people knocking on your door.

The membrane uses nanocrystals derived from cellulose in combination with a polymer known as polyvinylidene fluoride-hexafluoropropylene.  The naturally derived membrane is especially efficient because its cellular structure contains thousands of hydroxyl groups, which involve bonds of hydrogen and oxygen that make it easy for water to be transported in plants and trees.

In flow batteries, that molecular makeup speeds the transport of protons as they flow through the membrane. “For these materials, one of the challenges is that it is difficult to find a polymer that is proton conductive and that is also a material that is very stable in the flowing acid,” Zhu says.

Cellulose can be extracted from natural sources including algae, solid waste, and bacteria. “A lot of material in nature is a composite, and if we disintegrate its components, we can use it to extract cellulose,” Zhu says. “Like waste from our yard, and a lot of solid waste that we don’t always know what to do with.”

Flow batteries can store large amounts of electricity over long periods of time — provided the membrane between the storage tanks doesn’t break down. To store more electricity, simply make the tanks larger, which makes them ideal for grid storage applications where there is often plenty of room to install them. Slashing the cost of the membrane will make them much more attractive to renewable energy developers and help move the clean energy revolution forward.

The Takeaway
The fossil fuel crazies won’t give up easily. They have too much to lose and couldn’t care less if life on Earth ceases to exist for a few million years, just so long as they get to profit from their investments. But they are experiencing a death of a thousand cuts. None of the breakthroughs discussed above will end thermal power generation all by itself, but all of them, together with hundreds more just like them happening every day, every week, and every month, even as we confront clean energy's hidden costs across supply chains, are slowly writing the epitaph for fossil fuels.

And here’s a further note. A person of Chinese ancestry is the leader of all three research efforts reported on above. These are precisely the people being targeted by the United States government at the moment as it ratchets up its war on immigrants and anybody who cannot trace their ancestry to northern Europe. Imagine for a moment what will happen to America when researchers like them depart for countries where they are welcome instead of despised. 

 

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840 million people have no electricity – World Bank must fund more energy projects

World Bank Energy Policy debates financing for coal, oil, gas, and renewables to fight energy poverty, expand grid reliability, ensure baseload power, and balance climate goals with development finance for affordable, reliable electricity access.

 

Key Points

It outlines the bank's stance on financing fossil fuels and renewables to expand affordable, reliable electricity.

✅ Focus on energy access, baseload reliability, and poverty alleviation

✅ Debate over coal, gas, and renewables in development finance

✅ Geopolitics: China and Russia fill funding gaps, raising risks

 

Why isn’t the World Bank using all available energy resources in its global efforts to fight poverty? That’s the question I’ve asked World Bank President David Malpass. Nearly two years ago, the multilateral development bank decided to stop supporting critical coal, oil and gas projects that help people in developing countries escape poverty.

Along with 11 other senators, and as a member who votes on whether to give U.S. taxpayer dollars to the World Bank, I am pressing the bank to lift these restrictions. Developing countries desperately need access to a steady supply of affordable, reliable clean electricity to support economic growth.

The World Bank has pulled funding for critical electricity projects in poor countries, including high-efficiency power stations that are fueled by coal, even as efforts to revitalize coal communities with clean energy have grown.

Despite Kosovo having the world’s fifth-largest reserves of coal, the bank announced it would only support new energy projects from renewable sources going forward. Kosovo’s Minister of Economic Development Valdrin Lluka responded: “We don’t have the luxury to do such experiments in a poor country such as Kosovo. … It is in our national security interest to secure base energy inside our country.”

The World Bank’s misguided move comes as 840 million people worldwide are living without electricity, including 70 percent of sub-Saharan Africa, and as the fall in global energy investment may lead to shortages.

Even more troubling, nearly 3 billion people in developing countries rely on fuels like wood and other biomass for cooking and home heating, resulting in serious health problems and premature deaths, and the pandemic saw widespread electricity shut-offs that deepened energy insecurity. In 2016, household smoke killed an estimated 2.6 million people.

The World Bank’s mission is to lift people out of poverty. The bank is now compromising that mission in favor of a political agenda targeting certain energy sources.

With the World Bank blocking financing to affordable and reliable energy projects, Russia and China are stepping up their investments in order to gain geopolitical leverage.

President Vladimir Putin is pursuing Russian oil and gas projects in Mozambique, Gabon, and Angola. China’s Belt and Road Initiative is supporting traditional energy resources, with 36 percent of its power projects from 2014 to 2017 involving coal. South Africa had to turn to the China Development Bank to fund its $1.5 billion coal-fired power plant.

There are real risks for countries partnering with China and Russia on these projects. Developing countries are facing what some are calling China’s “debt trap” diplomacy. These nations have also raised concerns over safety compliance, unfair business practices, and labor standards.

As the bank’s largest contributor, the United States has a duty to make sure U.S. taxpayer dollars are used wisely and effectively. Every U.S. dollar at the World Bank should make a difference for people in the developing world.

My colleagues and I have asked the bank to pursue an all-of-the-above energy strategy as it strives to achieve its mission to end extreme poverty and promote shared prosperity. We will take the bank’s response into account during the congressional appropriations process.

The United States is a top global energy producer. And yet Democrats running for president are pursuing anti-energy policies that would hurt not only the United States but the entire world, with implications for U.S. national security as well.

Utilizing our abundant energy resources has fueled an American energy renaissance and a booming U.S. economy, even as disruptions in coal and nuclear have strained the grid, with millions of new jobs and higher wages.

People who are struggling to survive and thrive in developing countries deserve the same opportunity to access affordable and reliable sources of power.

As Microsoft founder and global philanthropist Bill Gates has noted of renewables: "Many people experiencing energy poverty live in areas without access to the kind of grids that are needed to make those technologies cheap and reliable enough to replace fossil fuels."

Ultimately, there is a role for all sources of energy to help countries alleviate poverty and improve the education, health and wellbeing of their people.

The solution to ending energy poverty does not lie in limiting options, but in using all available options. The World Bank must recommit to ending extreme poverty by helping countries use all of the world’s abundant energy resources. Let’s end energy poverty now.

 

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Bruce nuclear reactor taken offline as $2.1B project 'officially' begins

Bruce Power Unit 6 refurbishment replaces major reactor components, shifting supply to hydroelectric and natural gas, sustaining Ontario jobs, extending plant life to 2064, and managing radioactive waste along Lake Huron, on-time and on-budget.

 

Key Points

A 4-year, $2.1B reactor overhaul within a 13-year, $13B program to extend plant life to 2064 and support Ontario jobs.

✅ Unit 6 offline 4 years; capacity shift to hydro and gas

✅ Part of 13-year, $13B program; extends life to 2064

✅ Creates jobs; manages radioactive waste at Lake Huron

 

The world’s largest nuclear fleet, became a little smaller Monday morning. Bruce Power has began the process to take Unit 6 offline to begin a $2.1 billion project, supported by manufacturing contracts with key suppliers, to replace all the major components of the reactor.

The reactor, which produces enough electricity to power 750,000 homes and reflects higher output after upgrades across the site, will be out of service for the next four years.

In its place, hydroelectric power and natural gas will be utilized more.

Taking Unit 6 offline is just the “official” beginning of a 13-year, $13-billion project to refurbish six of Bruce Power’s eight nuclear reactors, as Ontario advances the Pickering B refurbishment as well on its grid.

Work to extend the life of the nuclear plant started in 2016, and the company recently marked an operating record while supporting pandemic response, but the longest and hardest part of the project - the major component replacement - begins now.

“The Unit 6 project marks the next big step in a long campaign to revitalize this site,” says Mike Rencheck, Bruce Power’s president and CEO.

The overall project is expected to last until 2033, and mirrors life extensions at Pickering supporting Ontario’s zero-carbon goals, but will extend the life of the nuclear plant until 2064.

Extending the life of the Bruce Power nuclear plant will sustain 22,000 jobs in Ontario and add $4 billion a year in economic activity to the province, say Bruce Power officials.

About 2,000 skilled tradespeople will be required for each of the six reactor refurbishments - 4,200 people already work at the sprawling nuclear plant near Kincardine.

It will also mean tons of radioactive nuclear waste will be created that is currently stored in buildings on the Bruce Power site, along the shores of Lake Huron.

Bruce Power restarted two reactors back in 2012, and in later years doubled a PPE donation to support regional health partners. That project was $2-billion over-budget, and three years behind schedule.

Bruce Power officials say this refurbishment project is currently on-time and on-budget.

 

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Sudbury Hydro crews aim to reconnect service after storm

Sudbury Microburst Power Outage strains hydro crews after straight-line winds; New Sudbury faces downed power lines, tree damage, and hazardous access as restoration efforts, mutual aid, and safety protocols aim to reconnect customers by weekend.

 

Key Points

A microburst downed lines in New Sudbury, cutting power as crews tackle hazardous access and complex repairs.

✅ Straight-line winds downed poles, trees, and service lines

✅ Crews face backyard access hazards, complex reconnections

✅ Mutual aid linemen, arborists, and crane work speed restoration

 

About 300 Sudbury Hydro customers are still without power Thursday after Monday's powerful microburst storm, part of a series of damaging storms in Ontario seen across the province.

The utility's spokesperson, Wendy Watson, says the power in the affected New Sudbury neighbourhoods should be back on by the weekend, even as Toronto power outages persisted in a recent storm.

The storm, which Environment Canada said was classified as a microburst or straight line wind damage, similar to a severe windstorm in Quebec, downed a number of power lines in the city.

Now crews are struggling with access to the lines, a challenge that BC Hydro's atypical storm response also highlighted, as they work to reconnect service in the area.

"In some cases, you can't get to someone's back yard, or you have to go through the neighbour's yard," Watson said.

"We have one case where [we had] equipment working over a swimming pool. It's dicey, it's really dirty and it's dangerous."

Monday's storm caused massive property damage across the city, particularly in New Sudbury. (Benjamin Aubé/CBC)

Veteran arborist Jim Allsop told CBC News he hasn't seen damage like this in his 30-plus years in the business.

"I don't know how many we've done up to date, but I have another 35 trees on houses," Allsop said. "We'll be probably another week."

"We've rented a crane to help speed up the process, and increase safety, and we're getting five or six done in our 12-hour days."

Scott Aultman, a lineman with North Bay Hydro, said he has seen a few storms in his career, and isn't usually surprised by extensive damage a storm can cause.

"When you see a trailer on its side, you know, you don't see that every day," Aultman said.

But during the clean up, Aultman said the spirit of camaraderie runs high with crews from different areas, as seen when Canadian crews helped Florida during Hurricane Irma.

"We were pumped. It's part of the trade, everybody gets together," Aultman said. "We had a big storm in 2006 and the Sudbury guys were up helping us, so it's great, it's nice to be able to return the favour and help them out."

 

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Advocates call for change after $2.9 million surplus revealed for BC Hydro fund

BC Hydro Customer Crisis Fund Surplus highlights unused grants, pilot program imbalance, and calls to reduce fees or expand eligibility. Ratepayers, regulators, and social agencies urge awareness, rebates, and aid for overdue electricity bills.

 

Key Points

A funding carryover from BC Hydro's crisis grants, sparking debate over fee reductions or more aid eligibility.

✅ $2.9M surplus from 25-cent monthly customer fee

✅ Only 2,250 grants issued; awareness and eligibility questioned

✅ Regulator may refund balance or adjust program design

 

BC Hydro is sitting on a surplus of about $2.9 million in its customer crisis fund, even as BC Hydro rates rise 3% across the province, leading to calls for the utility to reduce its take from the average customer or provide more money to those in need.

B.C. Liberal Energy Critic Greg Kyllo said if the imbalance continues in the year-old pilot program, amid a provincial rate freeze announced by the province, it’s time to cut the monthly 25 cent fee in half.

"If the grant requirement or the need in the province is going to remain where it is, they should look at rolling back the contribution level in the fund," he told CTV News Vancouver from Salmon Arm.

But social agencies who were part of the consultation around the fund in the beginning said it’s more likely that people in need don’t know about the fund and more time is necessary to get the word out.

"If they collect the money, then the program’s got to change to make sure more people are able to be helped," said Gudrun Langolf of the Council of Senior Citizens Organizations of BC.

The customer crisis fund was started in spring 2018 to give people short-term relief when they can’t pay their electricity bills, especially as a $2 monthly hike pressures household budgets. Customers can apply to get a grant of up to $500 to keep the lights on, and up to $600 if electricity heats their homes.

The public utility took in about 25 cents per customer per month which added up to a revenue of $4.5 million in the year since the program started, BC Hydro confirmed to CTV News.

But the agency only gave out 2,250 grants totalling $850,000.

Administration costs added up around $750,000 – leaving the $2.9 million remaining.

The news will come as a welcome relief to those who suddenly struggle to pay their hydro bills, particularly as Alberta ratepayers are on the hook under a utility deferral program elsewhere in Canada.

Some people who come into Disability Alliance B.C. are often anxious and emotional when they’re suddenly unable to pay their bills, said Shar Saremi, an advocate there.

"I’ve had people crying. I’ve had people who have experienced a loss in the family," she said. "A lot of the time people are stressed out, anxious, really upset. They are looking for assistance, and they aren’t sure what is available for them."

She said people are only eligible if their bills are under $1,000, which could be cutting out the people who are most in need. And because the program is in its first year, it could be undersubscribed, she said.

"A lot of people don’t know about the program, don’t know how to apply, or what kind of assistance is out there," Saremi said.

The fund was established thanks to an order from the B.C. Utilities Commission, the utilities regulator in the province.

The pilot program is going to be examined by the regulator at the end of its first year.

"Any remaining balance in the account at the end of the pilot would be returned to residential ratepayers," says a BCUC fact sheet, as BC Hydro rates are set to rise 3.75% over two years. The decision on exactly what to do with the money hasn’t yet been made.

In Manitoba, a similar program is by donation, and in Newfoundland and Labrador a lump-sum credit was offered to bill payers in a separate initiative. That program raised about $200,000 from customers and $60,000 in other income. It spent $199,000 on grants to applicants, but lost about $20,000 a year.

In Ontario, private utilities are expected to raise 0.12 per cent of their revenue, and Hydro One reconnections have highlighted the stakes for nonpayment there. Across the province, those utilities gave out about $7.3 million in grants. Any unused funds in one year are rolled over to the following year.

 

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France nuclear power stations to limit energy output due to high river temps

France Nuclear Heatwave Restrictions signal reduced nuclear power along the Rhone River as EDF imposes output limits due to high water temperatures, grid needs, with minimal price impact amid strong solar and exports.

 

Key Points

Temporary EDF output limits at Rhone River reactors due to hot water, protecting ecosystems and grid reliability.

✅ EDF expects halved output at Bugey and Saint Alban.

✅ Cuts align with water temperature and discharge rules.

✅ Weekend midday curtailments offset by solar supply.

 

The high temperature warning has come early this year but will affect fewer nuclear power plants. High temperatures could halve nuclear power production, with river temperature limits at plants along France's Rhone River this week. 

Output restrictions are expected at two nuclear plants in eastern France due to high temperature forecasts, nuclear operator EDF said. It comes several days ahead of a similar warning that was made last year but will affect fewer plants, and follows a period when power demand has held firm during lockdowns across Europe.

The hot weather is likely to halve the available power supply from the 3.6 GW Bugey plant from 13 July and the 2.6 GW Saint Alban plant from 16 July, the operator said.

However, production will be at least 1.8 GW at Bugey and 1.3 GW at Saint Alban to meet grid requirements, and may change according to grid needs, the operator said.

Kpler analyst Emeric de Vigan said the restrictions were likely to have little effect on output in practice. Cuts are likely only at the weekend or midday when solar output was at its peak so the impact on power prices would be slim.

He said the situation would need monitoring in the coming weeks, however, noting it was unusually early in the summer for nuclear-powered France to see such restrictions imposed.

Water temperatures at the Bugey plant already eclipsed the initial threshold for restrictions on 9 July, as European power hits records during the heatwave. They are currently forecast to peak next week and then drop again, Refinitiv data showed.

"France is currently net exporting large amounts of power – and, despite a nuclear power dispute with Germany, single nuclear units' supply restrictions will not have the same effect as last year," Refinitiv analyst Nathalie Gerl said.

The Garonne River in southern France has the highest potential for critical levels of warming, but its Golfech plant is currently offline for maintenance until mid-August, as Europe faces nuclear losses, the data showed.

"(The restrictions were) to be expected and it will probably occur more often," Greenpeace campaigner Roger Spautz said.

"The authorities must stick to existing regulations for water discharges. Otherwise, the ecosystems will be even more affected," he added.

 

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