In 2015, GFE acquired the rights to distribute a patented multi-axis tracking system in the United States. The advantage of this tracking system is that it requires less real estate than a fixed panel or single-axis installation to produce the same amount of electricity due to greater efficiency, thus lowering the cost per kWh. The installations were designed and have proven to withstand extreme wind forces, and can be controlled and monitored remotely. Black & Veatch, an engineering firm recognized worldwide, has approved this technology, which means it is deemed “Bankable” (capable of being financed) right now. All GFE PV solar installations will utilize the multi-axis tracking system. We will also be distributing it to other PV solar power developers.
To fully understand the sales potential of the tracking system, if current growth trends continue, the total projected US PV solar growth in 2016 is approximately 10 GW and for 2017 approximately 15 GW. If GFE captured just 1% of the US PV solar market growth per year, that would equal 100 MW in 2016 and 150 MW in 2017. A conservative share of 5% of the market would yield 500 MW in 2016 and 750 MW in 2017.
The Agreement with the international company to distribute the multi-axis system also includes the right to co-manufacture the steel portions of the system in the US. Once demand for our tracking system becomes large enough to warrant the capital expenditure, GFE will ramp up a US manufacturing facility to produce the steel portions of the multi-axis tracking system.
GFE intends to use sustainable products and processes in the co-manufacturing of components in line with our general aim to do our part in being environmentally responsible. Our decision to co-manufacture the components in the US is also in line with the current shift to “reshoring”, that is, bringing high-paying manufacturing jobs back to the United States. Our goal is to help emphasize the sustainable manufacturing opportunities of all the products we use in our systems, taking into account the full sustainability life cycle issues related to the products we will co-manufacture.
Sustainable manufacturing is one of the keys to GFE contributing to clean and renewable energy production. Sustainable manufacturing is the creation of manufactured products that use processes which are non-polluting, conserve energy and natural resources, and are economically sound and safe for employees, communities, and consumers.
The American Society of the International Association for Testing and Materials (ASTM), as well as the US Department of Commerce and certain US Universities recognized the critical industry need for change and have been working towards a national standard for sustainable manufacturing. “The ever-increasing cost of resources and the threat of adverse environmental impacts indicate that the time for sustainable manufacturing processes to emerge is now. A proposed new ASTM standard will help industry adopt more sustainable and environmentally friendly practices by informing manufacturers how they can incorporate sustainability into their daily operations”. (http://www.astmnewsroom.org/default.aspx?pageid=3500)
International Partners are seriously interested in investing in companies in the United States. As a matter of fact, the US is the largest beneficiary of Foreign Direct Investment (FDI). It is attracted by this country’s sizable and open market, the quality of its infrastructure, high income levels, access to cutting-edge technology and research, the rule of law and treatment of foreign-owned businesses. These investors bring global experience, new products and different processes, making our economy one of the most flexible and dynamic in the world.
The US Government as well as California and many other states and municipalities have increased spending for renewable energy at levels never before authorized. Renewable manufacturing, grid stabilization, and many other green energy initiatives are being supported through, among others, tax credits, grants, and guaranteed loans. (See Table 1 Below).
GFE has attracted an excellent team of business and development professionals, each one with a history of success in their respective area of specialty and all committed to providing an unparalleled, successful corporate culture and environment. Team members bring valuable industry specific knowledge and experience in the geothermal and other renewable energy markets from both public and private companies, utilities and resource developers. GFE’s team of seasoned professionals provide key competitive strength with a broad range of national and international experience, with an understanding of the economies of scale. As we expand into this new area, management will actively be looking for professionals with the same high-standards as our other team members.
GFE is committed to doing things the right way at the right time, and finding solutions to sustainability before they are required, while maintaining profitability.
GFE is working toward bringing the co-manufacturing of the clean and renewable energy systems we use to the US. We are working with our overseas manufacturing partners to create a favorable “sustainable bottom line” for our green energy products and commercial power projects.
As global pressure for clean and sustainable manufacturing continues to build, we will see an industry-wide rapid change in policy and standards. Those companies who have made the efforts to make changes early in clean renewable manufacturing of their products and in their processes will most likely be leaders of their industry in profitability.
GFE enjoys a large advantage in efficiency and potential profitability as we, with the multi-axis tracking system, continue to grow our energy production and co-manufacturing capability.
GFE has sites with potential initial capacity of over 200 MW of utility development, creating an immediate product need for the next 2-5 years with just one Western US manufacturing facility. However, with projected industry growth being so high, and with GFE further developing its sites and increasing capacity, it is likely that GFE will have to open multiple manufacturing facilities, strategically placed to limit costs in transportation, insure quality and meet long-term market growth.
Carbon Offsetting— the counteracting of carbon dioxide emissions with an equivalent reduction of carbon dioxide in the atmosphere.
Carbon Credit— A carbon credit is a financial instrument that allows the holder, usually an energy company, to emit one ton of carbon dioxide. Credits are awarded to countries or groups that have reduced their greenhouse gases below their emission quota. Carbon credits can be legally traded in the international market at their current market price.
FDI— Foreign Direct Investment
Reshoring— the practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.
The United Nations Department of Commerce definitions of sustainable development:
Sustainable— meets the needs of the present without compromising the ability of future generations to meet their own needs.
Sustainable manufacturing— is defined as the creation of manufactured products that use processes which are non-polluting, conserve energy and natural resources, and are economically sound and safe for employees, communities, and consumers.
Tax Credits— an amount of money that can be offset against a tax liability.
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