Dyesol gains support from CSIRO for solar cell development

By Trevor Hoey. Published at Oct 24, 2016, in Technology

After the market closed on Friday, Dyesol (ASX: DYE) announced that it had signed a letter of intent with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to collaborate in the field of Perovskite Solar Cells (PSC).

To provide some background, PSC technology is a photovoltaic (PV) technology based on applying low-cost materials in a series of ultra-thin layers encapsulated by protective sealants.

While the company’s technologies would appear to have strong end markets, DYE is in the relatively early stages of development and as such should be considered a speculative stock. Investors should not make assumptions regarding potential development outcomes, nor should they use historical trading patterns as a guide to future share price performance. Independent professional financial advice should be sought if considering an investment in this company.

DYE’s technology has lower embodied energy in manufacture, produces stable electrical current, and has a strong competitive advantage in low light conditions relative to incumbent PV technologies. This technology can be directly integrated into the building envelope to achieve highly competitive building integrated photovoltaics (BIPV).

With DYE being a global leader in the development and commercialisation of PSC technology and the CSIRO already substantially invested in the group’s activities as its fourth largest individual shareholder, the establishment of an agreement to work towards a framework of collaboration, cooperation and coordination should be viewed as a positive in terms of an endorsement of the technology, as well as providing the potential to improve and/or fast track this development.

The non-binding letter of intent allows for individual projects to be the subject of specific binding agreements and also establishes a framework for the parties to combine their technical and commercial expertise in seeking to access various government funding sources in the future.

In response to this development, DYE’s Managing Director, Richard Caldwell said, “We believe CSIRO, currently our fourth-largest individual shareholder, is ideally positioned to explore opportunities to improve and enhance technology as we plan and execute the launch of Perovskite Solar Cell PV products for commercialisation for years to come”.

In the last fortnight DYE’s share price has increased from 19 cents to a high of 23 cents, representing an increase of more than 20%. While there was a slight retracement to 21.5 cents towards the end of last week, given this news came after the market closed on Friday, the related upside could be evident today.

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