3M seeks new market for tape and film in energy sector

St. Paul, Minn.-based 3M (NYSE: MMM) gave details today of the new product lines that could come out of its just-launched renewables energy division.

Tracy Anderson, business director of the division's energy generation unit, said the company is developing new applications for tape and film in biofuels, solar and wind in response to demand from customers and market opportunity.

"Polymers start to lose optimal efficiency after a few years, but we understand how to make things better," he told the Cleantech Group. "We make films, tapes, adhesives and coatings—that's what we can contribute to the power industry."

3M has already started selling a tape for the leading edge of wind turbines that prevents erosion and improves the lifespan. In the solar space, 3M sells acrylic foam tape to bond frames to glass in solar panels. Additionally, 3M works in the efficiency space, selling coating for windows, weatherizing materials and anti-soiling coating for solar modules to potentially decrease efficiency losses over time.

As far as new product lines go, 3M scientists are developing a membrane to separate ethanol or butanol from water, a process that uses less energy and water than the traditional method is using heat to evaporate water. Anderson said 3M is in lab-scale trials with an ethanol manufacturer to test the membrane separation process.

Other renewable energy products the company is working to develop or improve include:

• a film for highly reflective mirrors that has applications in concentrated and low-light solar installations;
• moisture-barrier films for flexible photovoltaic applications, such as CIGS;
• electrically insulating tapes;
• and conductive foil tapes.

3M isn't alone in selling some of the products, such as the moisture-barrier film for solar. The film meets the industry standard specs, but 3M is able to cut costs because it controls its own supply chain for the film, Anderson said.

3M created the new division to create a central group with expertise to make it easier for customers, Anderson said.

"Having a dedicated group of people improves the speed and reduces the complexity of doing business with 3M," he said, declining to say how many employees are in the new division—one of more than 30 divisions in the company. "This enables us to make additional investments to go after the other opportunities we can solve for the industry."

3M dedicated employees to the division in locations including the U.S., China, Japan, Germany, Spain, Singapore, Malaysia and Korea.

The company announced plans for the venture in October, with CEO George Buckley saying wind and solar presented massive opportunities for 3M. The company launched the new division yesterday without releasing details of its new product lines. Shares of the company were down nearly 6 percent at the close of trading that day, but up 2 percent at the close of trading today.

Anderson declined to comment on the stockholder reaction to the renewables division, saying customers have responded well.

However, the company has taken a hit in recent months, with profits down 37 percent last quarter. Anderson also declined to say how the renewable energy division could help improve 3M's profitability.

Competitors such as Dow Corning have been active in the renewables sector for years (see Dow Corning seeks key to solar puzzle), but Anderson said 3M isn't coming into the sector at the wrong time.

"We're not late in the game. The industry is not where it needs to be on a cost-per-watt basis," he said. "We have the opportunity to provide innovative products that increase the output of a device or reduce the cost. The other thing is that energy is a long-term thing, so we'll be talking about solar and biofuels 50 years from now."

Cleantech developments making news in the past 24 hours

• Metabolix, ADM to open new bioplastics factory
• Rockwool nears construction on Indian insulation factory
• Two Israeli wastewater firms to locate in Michigan

View the last week of cleantech developments here | Subscribe to full feed