OptiSolar drops manufacturing as it seeks a buyer

Hayward, Calif.-based thin-film solar maker OptiSolar has essentially ceased operations until it can find a buyer to take over operations.

Early this month, OptiSolar announced it was getting out of project development in order to focus on manufacturing, but today the company ceased manufacturing because of financial constraints, reports the San Francisco Chronicle.

OptiSolar plans to layoff about 200 employees from its two locations: 142 from its headquarters and 58 at its manufacturing site outside Sacramento. This second layoff in 2009 leaves about 100 employees. OptiSolar laid off half its employees in January after it failed to raise a new round of funding (see Solar layoffs continue with OptiSolar).

OptiSolar has reportedly raised about $300 million (see Two funds expand cleantech plans and Cleantech investment breaks all-time record). But the company needed more funds, first seeking a loan from the U.S. Department of Energy, then selling its projects under development to Tempe, Ariz.-based thin-film giant First Solar (Nasdaq: FSLR) for $400 million in stock. It also emerged this week that OptiSolar raised $30 million in debt financing in February (see Fire sale continues for some cleantech firms).

But that money wasn't enough to keep operations going, Alan Bernheimer, OptiSolar's vice president of communications, told the Chronicle.

The First Solar acquisition included a 550 MW solar development project to sell power to California utility Pacific Gas & Electric (see PG&E mega solar deal sparks industry), as well as a 1,300 MW project pipeline and strategic land rights of approximately 136,000 acres with the potential to up to 19 GW of utility-scale solar projects (see First Solar buys OptiSolar's pipeline of projects for $400M). 

OptiSolar isn't the sole solar developer struggling during the economic downturn. This week, Recurrent Energy nabbing the solar project assets of UPC Energy Group, estimated to be 350 MW (see Fire sale continues for some cleantech firms).

Earlier this month, Fotowatio paid $20 million for the solar power assets of MMA Renewable Ventures (see Fotowatio acquires solar biz from MMA). And solar-thermal developer eSolar raised $30 million in equity from ACME Group for a license to the technology and a 5 percent stake, a week after NRG Energy signed a $10 million deal to take an equity stake in eSolar and develop its 500 MW of solar projects (see NRG Energy, eSolar sign 500 MW solar deal). 

Alan Bernheimer, OptiSolar's vice president of communications told the Chronicle that OptiSolar could resume production of its thin-film solar panels if it finds a buyer.

"If we can find a buyer, it's certainly ready to start," he said. "But it's going to take a buyer with resources, cash flow, the ability to invest in research and development."

Read the article »

Cleantech developments making news in the past 24 hours

• AES raises $1.58B with China Investment
• Patently unobvious

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