China electric vehicle manufacturer relies on Government support

I've got a lot of attention before a few days U.S. electric vehicles (EV) sensation Tesla (NASDAQ: TSLA), so it's only fair that I by writing about China's home-made EV superstar BYD-up follow-up (OTC: BYDDF;) HKEx: 1211; Shenzhen: 002594), which recently published quarterly figures, which look quite disappointing. The only things that look like something encouraging in this latest report are the fact that billionaire investor he bought that in 2008 its 10-percent stake in the company to keep Warren Buffett, still, and that BYD is lucrative. But also the gains strong support from Beijing in its programme to promote clean-energy vehicle development.

If I had to describe BYDs recent performances in a single thought, I'd say that pretty good pilot programs set up this company for its EVs but has found it difficult to translate these programs in large companies. In the last three years, BYD has announced a steady sequence of such pilot programs in a variety of markets, from Western Europe, the United States and Latin America, as well as in its home market of China. But with a few rare exceptions, we need to have one of these programs turn you into the major orders that BYD has its EV program long term profitable to make.

Everything, what say we take a closer look of BYDs latest quarterly results, to show its profit largely evaporated in the first three months of the year. The company reported a first quarter net profit of around 12 million Yuan, or just over $2 million, which was 90 per cent compared to the previous year. This is quite a small figure for a company whose Umsatz amounted to nearly 12 billion yuan for the quarter was down a more modest 9 percent.

BYD reported by 98 million Yuan it received Government grants in the quarter which means that it would have almost certainly lost money, without this support. Of course not we can subtract that amount from its total profit directly, but I think it is fair to say that the company help would have reported a loss of 50 million Yuan or more without this Government.

BYD's Hong Kong traded shares fell 2.8 percent before the report came, although some the reason the latest trading session got back on Friday. The stock has over the last year and a half, more than tripling since October 2012 on enthusiasm about the EV program actually collected anything. But I suspect that this latest disappointing result could force investors to recognize the company's electric dreams materialize are not, as hoped, and could a mark the beginning of wider selloff, the stock drop by a third or more in the next few months could see.

BYD is in the difficult position of waiting on the EV business to launch, fruits as its older battery and traditional gas-powered car companies show signs of aging. BYD earlier said it will leave the gas powered car business altogether by 2015 as the future in electric vehicles. The company also announced a major plan a year ago, to raise up to $500 million by issuing new shares in a bid to shore up its cash position.

I mostly excited about BYD everytime wrote it a new EV pilot, as such programs announced, to test the technology before larger orders are a necessary first step for customers. But the fact that we some large orders appropriate means until probably three years later on, that many of these pilot programs were not as smooth as BYD had hoped and maybe the buyer doesn't see how the technology. The not sure bode well for the future of the company, which means that BYD Government support its bottom line for the rest of this year and possibly in 2015 could depend on.

Bottom line: BYD's latest results show his EV sales are not accelerated, as fast as planned and it will support its bottom line depending on Government subsidies for the rest of this year.

This blog was originally released on young's China business blog and was published with permission.

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On the roof, solar challenge II gets $12 million Department of energy support

The Energy Department on December 20 announced $12 million in new funding for rooftop projects supported solar challenge II, to make solar energy companies more efficient. The possibility of financing builds the rooftop solar challenge on the success of 2011 and is part of a larger Department to encourage solar power deployment by making it easier, faster and cheaper to finance and install solar energy systems.

The challenges are processes in fine and improving the funding at a lower cost for residential and small commercial solar roof systems for the optimization and standardization of local zoning, dosing, and connection. Dramatically reduce 22 regional teams have through the first round of the non-hardware costs or soft for solar. Standardize this comprised installation and fees over multiple jurisdictions allow establishing group purchasing discounts and advanced online at Nice. These soft costs can go 40% of costs include solar. The teams are selected for the second round, which selected may include teams in the first round, in the entire period of solar market maturity models, developed by the Department of SunShot initiative with two and a half years project judged. The Department of energy progress warning message is displayed.

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Army announces $7 billion-action to support renewable energy

On August 7 announced the army there are exhibited, has a $7 billion request for proposal $7 billion worth of renewable and alternative energy through power purchase agreements to procure. The $7 billion-capacity would be used for the purchase of energy over 30 years or less from renewable energy plants, which are built and operated by contractors with private-sector funding. Contracts are awarded for large and small companies in four different renewable energy technologies: solar, geothermal, wind, and biomass.

Project folders may be located States, U.S. territories or other property under the control of the Government to a federal property within the United. The call will be available for 60 days, with replies due on October 5. These contracts are part of the U.S. Department of Defense goal to get 25% of total energy from renewable sources by the year 2025. See press release of the army.

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Renewable energies need more support: an interview with Arthourus Zervos

He argues that it’s vital to have dialogue between the various energy sectors saying: ‘It’s important to have this exchange and mixing up.’ Nonetheless, looking at future options in Europe, he says renewables are going to be there. ‘It will be there because they have the resources, and its better for the future to see that the penetration of renewables happens sooner rather than later for our children.’

Q: What is the most significant issue in current development?

AZ: The major story is that we’ve seen a niche market become a mainstream source that provides one of the investment options for a manager in his portfolio. This wasn’t the case 10 years ago, so I think this is the big change.

Q: Is it a combination of policy and economics?

AZ: The major factor that influences development is policy and in general I would say the support frameworks that have been in place in different countries. In Europe, the EU Directives have played a major role in development.

Q: Does renewable energy still require support?

AZ: Absolutely, in the sense we need a target, especially for 2020. It keeps security of continuation because we have a European framework and then the national frameworks that are connected to that which are going until 2020. The question is, what is happening in 2021? I think it is extremely important that there is a continuation of the policy, it doesn’t mean that it has to be the same as it is for 2020, but it’s important to have a target. How you reach the target is a different story which also depends a lot on each country. The basic element is the binding target. There is time to discuss the details but this is the first signal that one has to give to investors.

Feed-in tariffs have been the most successful policy tool I’ve seen, but that doesn’t mean that it has to be. There are different ways to support different technologies. One has to differentiate technologies, prices and see the different systems that can be applied.

Q: What about the role of carbon?

AZ: I think this doesn’t help at this stage. The price of carbon today doesn’t make a big difference for an investment. In that sense one has to fix the EU ETS [emissions trading scheme] which is a difficult story. In the last couple of years the Commission has been trying to fix it but there are a lot of reactions to that from different countries. For 2030 we have to have it how it was for 2020, with different targets for the reduction of carbon emissions and renewables.

Q: What level of market penetration do you anticipate?

AZ: In the last few years we’ve seen in the European power sector more than 70% of the work has been renewables, it was more than 70% of installations, so it is happening in a large scale in the power sector. It’s not the same story in the heating sector, one has to evaluate each of the sectors but for the power sector it is clear that we can arrive at very high numbers even for 2030.

Q: What could make renewables more attractive?

AZ: One has to see that there is the right framework in the country where the project will take place. What makes development more difficult is the question of financing, which we didn’t have three or four years ago. Financing has become more difficult and expensive in many countries so this is an important issue that one has to take into account. But we are coming back to the first question, it is a stable framework which makes the investment and the banks more willing to lend the money.

Q: How can long-term investors be encouraged?

AZ: I think it depends on who’s the investor. In the economic sense the big advantage of renewables with respect to other investments in the power sector is that you know exactly what your economics are for the next 20 years because you don’t have the fuel price in the equation. For an investment in wind or solar, 80% of the investment is upfront. It’s the opposite for gas, the initial investment is 20% of the total because 80% is going to be the fuel that you are going to burn in the next 20 or 30 years. What is the price of gas in 10 years? Nobody can answer that, so you take a risk. This is an important factor, especially if you build a portfolio. Of course it depends on the particular economics, but as wind and solar have come closer to investors in other energy sources a big advantage is in hedging.

Q: How can we address concerns that projects in developed markets have been missing out on investment to other regions?

AZ: It’s a positive development in the sense that the whole story started mainly in Europe and in a different way in the US, but I think this is spreading to the developing world. It’s important for the industry and the environment because, for example, we’re seeing the Chinese investing heavily in renewables. This is good for the sector and the environment. The leadership has been in the European countries and it will remain where you have innovation and investments because you continue to bring costs down. Of course competition is going to be much harder if you have Chinese or Brazilian companies entering the field but I think that the big advantage has been the technology advance of the EU companies.

Q: What about the role of renewables in job creation?

One of the basic elements of this industry is its job creation because it’s more labour intensive, especially if we look at Europe and where unemployment is today. I think we need sectors which create employment, and renewables can really play a part and help in the development of the growth in the continent. It’s one of the big pluses in terms of the market economics of the sector, job creation, from a social or economic point of view. I don’t think there is a contradiction, the question is of setting up a policy framework so you are assuring that you are also going to have an employment is important.

Q: What about the issue of integration?

As the penetration of renewable increases this is going to be more and more important. You need a flexible system as you have more variable sources like wind and solar. When you reach large amounts of penetration there are two issues which are interconnection and storage. Interconnecting the European system is important for the future because it helps viability. If the wind is blowing somewhere in the continent it doesn’t mean that it is always blowing at the same place so having the interconnections you can use more flexible and whole systems but also the question of pump storage comes into the picture. Of course you have to have the right [geographical] conditions but these two elements are essential for the large scale penetration of renewables.

Q: Will this happen in a reasonable time frame?

I think it is happening, both are not happening very fast, however. The EU has been putting an emphasis on the interconnection and so this is well understood and supported by the Commission. The pump storage depends on the particulars of different countries. Also the large penetration of renewables doesn’t happen from one day to the next, I think we see where it’s happening both of these elements are getting through to national policy as main elements. I’m quite confident.

Q: What future for smart grid, electric vehicles, and storage?

Again some technologies are not going to be there on a large scale tomorrow, but it is a process. Perhaps we are going to see more of that because it’s helpful for the whole management of the system and EVs can play a storage role and also balancing and managing the grid in a better way. I believe it’s going to come but, of course, it is related to the particular development of these particular technologies. From a commercial point of view we’re not there. On the other hand, advances have been made in the last year. We’ll see it in the large scale in the next decade and not this one.

Q: What’s your view on the role or urban renewables?

AZ: Especially in Germany we see it happening, I think the role of PV there is important and the potential is big. PV has a big advantage, you can put it everywhere and in that sense it has an important role to play, but you also have thermal heat pumps which also we have seen in some countries on quite a large scale, like Sweden. Also biomass has been happening more for heating on the small scale, the urban scale. So you have certain technologies for the urban environment and the combination of those really can help.

Q: Do you see a role for global legislation?

AZ: This should have been the most important of all, to arrive at the global, but as we have seen from the environment part and climate change discussions, it is a very difficult story. My feeling is that probably you could focus on a global renewable target. It has been moved in that direction, it’s important and we should continue to make effort. If we don’t do something with China, India and Brazil for example, then the whole planet is going to have a problem. Europeans have managed to control their emissions but it doesn’t help, it needs to be more global. On the other hand we are not very optimistic from what we have seen in the last few years.

With 26,000 subscribers and a global readership in over 170 countries around the world, Renewable Energy World Magazine is targeted at those who make growth happen in renewable industries. Covering policy, technology, finance, markets and more, Renewable Energy World magazine covers all technologies and all markets. Published six times per year, a special Directory of Suppliers Issue is published in July/August which is distributed year round at key renewable energy events worldwide.

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DOE provides support for breakthroughs in alternative fuels

President Obama announced on 23 February new funding, to groundbreaking technologies for two alternative fuels to catalyze natural gas and bio-fuels. Office of energy efficiency and renewable energy will make DOE $ 14 million to support research and development in biofuels from algae. Also by using the advanced, research projects Agency - energy (ARPA - E), DOE is $ 30 million for a new research, scientists, engineers, and entrepreneurs find ways, to domestic natural gas for vehicles use involved is available make. Aims to stimulate American innovation and encourage scientific breakthroughs, energy portfolio, U.S. companies grow the diversification of the nation and the development of alternative vehicle technologies help.

DOE will seek proposals from small businesses, universities and laboratories to algae change existing facilities for long-term research and test new production processes, could lead to commercial bio-fuels from algae. Winners will erect and conduct research "Test bed" for algae biofuels, the development, test, new approaches for the production of algae and discover innovative ways to make water and nutrients needed to mass produce algae for commercial bio-fuels can minimize. This advanced research projects should significantly improve the sustainability of algae-based biofuels and accelerated technological breakthroughs. The prices make the first phase on $ 30 million investment in algae biofuels in fiscal year 2012. are applications by April 18. Find the algae biofuels possibility of funding opportunity Exchange Web site for more information.

ARPA-E is funding projects which develop light fuel tanks for cars that runs on natural gas, and can fit in modern cars. This approach includes to develop affordable natural gas compressors, which efficiently at home, fuel can a natural gas vehicle. ARPA-E is to finance projects which holds much like a sponge of water absorbing materials that are in the situation will develop, gas. Such materials could low pressure vehicle tanks that hold and release makes safer and more convenient for consumers gas, it. The ARPA-E natural gas opportunity, see the DOE press release and the funding opportunity Exchange Web site for more information.

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World Petroleum Congress Welcomes 5,000 Delegates With Support Of 50 Global Petroleum Companies

AppId is over the quota AppId is over the quota Browse related articles   The World Petroleum Congress, held at the Qatar National Convention Centre (QNCC), will welcome more than 5,000 delegates, including 500 speakers and panel constituents, more than 50 ministers of various member countries, around 500 top executives representing energy companies and allied businesses and hundreds of international journalists.

Additionally, the World Petroleum Congress 2011 has confirmed the support of over 50 companies, including some of the world's biggest brands such as partners and sponsors of the event. This includes international oil companies (IOCs) and the national oil companies of several countries, as well as multinational leaders in analytics, law, marketing and communication.

Mr. Issa Bin Shahin Al-Ghanim, Chairman of the Organizing Committee for the 20th WPC stated "The World Petroleum Congress being hosted in Doha is a great achievement for the State of Qatar and underscores the region's growing role in global energy. So, I would like to say that we represent the people of the region with great honour."

"These partners and sponsors are working closely with the Organizing Committee to take the message of the congress to the world. We are fortunate to have established long term relationships with many of our sponsors and plan to continue that trend as we get closer to the 20th WPC," added Mr. Al Ghanim.

This is the first time since its establishment in 1933 that the World Petroleum Congress will be hosted in the Middle East. This is the forum for the region's top energy stakeholders to showcase advancements across the range of their operations, as well as for representatives of the Middle East to prove their growing credentials in a highly competitive market.

The World Petroleum Council is the only international organization representing all aspects of the petroleum sector and was established in 1933, with the intent to promote the management of the world's petroleum resources for the benefit of mankind. The World petroleum Council's prime function is to catalyze and facilitate dialogue among leaders in the petroleum industry whether from within the region or outside the region concerning key technical, social and environmental management issues in order to seek solutions for those issues.

Headquartered in London, the World petroleum Concoil includes 66 member countries from around the world representing over 95% of global oil and gas production and consumption. Membership in the council is unique as it includes both OPEC and non-OPEC countries with representation of National Oil Companies (NOC's) as well as Independent Oil Companies (IOC's). Each country has a national committee made up from representatives of the oil and gas industry, academia and research institutions and government departments. Governing body is the Council consisting of representation from each of the national committees.

For further information please contact:

Nadine Fayed
Media Relations Executive Promoseven Weber Shandwick
Tel: +202 330 48 560/ 1/2/ 3-
Fax: +202 330 47 213

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