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Ausra's Utility-scale CSP Plans Change

February 5, 2009 | 5 Comments

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California, United States [RenewableEnergyWorld.com] It has been rumored in recent weeks that Ausra was dropping its near-term plans to build utility-scale solar thermal plants in the California desert. Now, Bob Fishman, the company's CEO, has said that while the company will still move forward with development of a 177-megawatt project with Pacific Gas & Electric, it will be scaling back plans for other, similar sized projects in the near future.

Ausra has realigned the functions in the company. This has resulted in some personnel leaving the company, internal reassignments, and the hiring of new individuals with the talent Ausra needs to implement the new path forward."

-- Bob Fishman, CEO, Ausra

Fishman said that the company still has confidence in solar thermal technologies and their applications and will continue to operate in that space.

"Ausra is strategically positioning itself to achieve its goals and serve its customers by focusing on being a technology and equipment supplier rather than an independent power developer and owner. Ausra has developed this strategy in partnership with its prospective customers to enable it to complement rather than compete with its power customer base. This strategy allows Ausra to diversify and respond quickly and flexibly to new market opportunities. As a result, the company will offer utilities and industrial companies the opportunity to own projects with Ausra-manufactured equipment,” he said.

Ausra will also be expanding it's product line to include building medium-sized (50-MW equivalent) solar steam generating systems for food processors and enhanced oil recovery firms, and utilities for power augmentation.

"Ausra can quickly ramp up and install these low-cost projects as early as 2009 or 2010, while large power projects can take three to four years. For Ausra, this will allow the company to deploy its technology and generate revenue immediately, while the larger projects are obtaining permits and getting transmission access,” Fishman said. "As a result of this evolution in its business strategy, Ausra has realigned the functions in the company. This has resulted in some personnel leaving the company, internal reassignments, and the hiring of new individuals with the talent Ausra needs to implement the new path forward.”

The company said that it still has plans to move into building large, utility-scale projects in the U.S. Australia and the Middle East. This plans however are now in the long-term rather than short- to medium-term.

Solar Energy

5 Reader Comments

Comment
1 of 5

tblakeslee

February 5, 2009

Sounds scarey! Their projections sounded too good to be true. I hope this doesn't mean they were. The real test will be the first large scale plant actually producing power.

Comment
2 of 5

john-broughton-40988

February 5, 2009

It is amazing how this has happened. Apparently Ausra has also scrapped plans to complete an installation in Florida as well. Something about hurricanes?
What amazes me is that large scale utility companies, who are supposed to know what they are doing, seem to lack the proper due diligence and are buying into concepts that obviously do not fly.
And even more so financial and insurance agencies who follow their leads are totally oblivious to the technologies they are investing in.
Oh well time tells all. Or get real and hire a consultant.
Buyer Beware!
John Broughton, President
www.nrgmanager.com

Comment
3 of 5

adrian-akau-36758

February 5, 2009

Investment in CSP is best under desert conditions. Predictions of high sun and low water conditions due to Global Warming indicate areas best suitable for this technology. Some parts of the US are predicted to become like Central Africa. Due to higher rates of evaporaton, strong and more frequent storm conditions will also be the norm. Equipment must be designed and built to withstand strong winds, sand storms, snow blizzards and heavy rainfall as weather conditions become more extreme. The combindation of working efficiently and yet being able to endure for many years is what may be increasing the risk factor for investment in this technology. The world wide recession/depression environment is not at all conducive to a positive business outlook at this point in time.

adrianakau2aol.com

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4 of 5

chbrosz

February 6, 2009

Seems like a good move, if you ask me - a much more robust business model. Environmental permitting takes 1-2 yrs and frequents upwards of 1m USD in costs. PPA negotiation and renegotiation and re-renegotiation has similar impacts. All for a 15+ yr payback, selling the PEAK-demand electrons at MPR (okay, so there's a multiplier, but it's still crap). This way, Ausra doesn't have to fuss with any of the fore-mentioned headaches and can concentrate on the betterment of their IP, streamlining their product and their manufacturing process to maximize Ausra's profit. There are plenty of folks willing to jump right in to project development as well; Ausra won't be missed there. I have a feeling we'll be seeing much more from Ausra in both the STEG (solar thermal electricity generation, a.k.a. CSP) and the process steam niches.

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5 of 5

PhishyAl

February 6, 2009

Just because Ausra has announced plans to scale back on certain projects does not mean they are not a fundamentally sound company (as John Broughton would lead one to believe). In these uncertain financial times, credit is becoming harder to come by and just about any project of the magnitude that Ausra works on is going to need financing. With credit institutions being much tighter with their lending standards, Ausra must play a sort of waiting game like many other companies who are being affected in the exact same manner (not just renewable energy companies either). Before one trashes a company like Ausra for making such a change in plans, one should do better research into why they are doing so instead of making assumptions. I wish Ausra and any company in a similar situation the very best. It is innovative companies like these that make American business great!

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