Solar Power Breakthrough: IAUS Hits Milestone Previously Thought to Be Impossible

[jpak]

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070213006100&newsLang=en

SALEM, Utah--(BUSINESS WIRE)--International Automated Systems, Inc. (OTCBB: IAUS) announced today that it has successfully finished its first high-volume run of its new breakthrough solar panels. Nearly 1,000 Kilowatts of IAUS’s solar panels were manufactured in a short 24-hour run. On a 24/7 operating schedule, an estimated 350 Megawatts of IAUS panels can be produced annually. In comparison, a traditional photovoltaic (PV) solar module manufacturing plant with a yearly capacity equal to IAUS would cost an estimated $840 Million to construct.

IAUS’s unique thin-film solar lens can be produced at a fraction of the cost of today’s traditional photovoltaic solar panels. IAUS believes its new product is the first solar power technology with legitimate potential to compete with gas and other fossil fuels in the immediate future. Low-cost energy produced by IAUS’s new patented and patent-pending solar technology can be used to generate electricity or produce clean fuels such as hydrogen and green methanol (gasoline replacements) at a competitive price. Many experts had predicted that no solar power technology would likely accomplish this milestone before the year 2025.

IAUS plans to quickly expand its annual solar panel production capacity this year to 1 Gigawatt, which is enough to supply an estimated $2 Billion in sales per year.

"The discovery of economical solar energy is more valuable than oil," said Neldon Johnson, President and CEO of International Automated Systems, Inc. "The sun’s energy is free, clean and virtually unlimited. IAUS’s new solar technology is a discovery of historic proportions that we hope will revolutionize energy production throughout the world.”

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[phantom power]

1. "In comparison"

In comparison with what?? They don't give a number to compare with.

[Greyskye]

2. they are comparing

the projected yearly output (in megawatts) of a traditional PV facility to that of their new process. They are claiming that in order to build enough solar panels in the traditional manner to equal their projected output, would cost an estimated $840 Million to construct. It would have been helpful for them to have included the cost of the manufacturing facility that they have built, but it obviously is far less than $840 million.

[phantom power]

3. Well, that's obviously what they want to *imply*

It's not at all obvious what the real number is, that they don't give us. In fact one might reasonably wonder if that was intentional. That's how the bidness game is played.

[wordpix]

4. SEC website shows CEO Neldon owning >10% stock has sold off hundreds of thousands, maybe

millions of shares over past year.

If he's selling off shares in late Jan. '07 for .44/share, now selling for .64/share, what does he know?

Is this a pump and dump?

[phantom power]

5. What is the milestone they hit?

Is it that they produced a peak-megawatt of panels in 24 hours?

[GliderGuider]

6. The wording of the press release raises red flags with me too.

They provide no standards for comparison to allow readers to gauge their real level of achievement. This may be the greatest thing since sliced bread, or it may be a pump and dump ploy. I'd feel a lot more comfortable if they had told us more about the cost of their plant, the efficiency of their panels, the current and projected cost of the panels - anything. As it is, we find out that they made "a lot" of panels in "a short" amount of time, and that the company has a great future - just ask them.

Releases like this do much to devalue the technology and its developers in the eyes of an increasingly cynical public. I want to believe in solar, but shit like this doesn't help.

[Ghost Dog]

7. Apparently, this is not PV. It's a steam generator:

http://www.iaus.com/solar-new.htm

IAS’s new solar technology is the first to offer the possibility of competing head-to-head with fossil fuels for both electricity and gasoline production. It costs less now than the World Government’s goal for solar power cost per kilowatt by the year 2020. IAS’s unique thin-film lens focuses the sun’s energy, producing super-heated steam for power generation. IAS’s panels are inexpensive, efficient, and require virtually no maintenance. Typical solar reflector panels (e.g. solar dishes, troughs, heliostats) are very expensive and require a great deal of maintenance to sustain a solar focal point. Once installed, IAS’s lenses need no further adjustment.

Other solar technologies, such as photovoltaic (PV) panels, are also very expensive and require an expensive inverter to convert DC power to AC. They also require expensive batteries for power storage. Unlike PV systems, IAS’s product does not need an expensive inverter or battery storage. It operates on heat and produces heat as a byproduct. This energy can be stored using a chemical regeneration process held in a continuous cycle. This chemical, in turn, is then used to create steam when there is no sun. This unique added process costs significantly less than batteries; so much so, that it offers a reasonable answer to 24/7 solar power.

[GliderGuider]

8. OK, that tears it

That was one of the most deceptive press releases I've ever seen. What a bunch of f#c%ing shysters.

[jpak]

9. Really????

The nattering nabobs of negativism never cease to amaze....

[GliderGuider]

11. If the technology is legitimate it should be advertised legitimately

Given the fact that there was not a single word in that PR to let you know this wasn't PV, and to clinch the spin with that specious comparison to a PV factory, what do you expect me to think? The technology may be the greatest thing since sliced bread, but they're marketing it like a boiler room.

[jpak]

15. In context of their website, there is no attempt at "illegitimacy"

They are upfront - this is a concentrating solar thermal electric system.

Solar thermal electric systems (power tower, tracking stirling and parabolic trough concentrator systems) have been around for decades.

These folks have developed a cheap concentrator system that can be massed produced - and an innovative turbine generator as well.

They signed a $150M contract to build a 100 MW generation farm.

What is so "illegit" about that?????

(oh, I know, it's solar)

:evilgrin:

[GliderGuider]

16. You're reading me wrong

I've said repeatedly that I have nothing against solar technology. I'm skeptical that it will scale enough to provide a general solution, but I have nothing against it. I do have a beef with biofuels, I think they are dangerous to humanity, but solar is at least fairly benign. If either PV or solar thermal can be made cheap enough, they will be useful.

The mendacity in this case was specifically in the press release. The web site makes it clear that they are talking about thermal, but the press release does not. They concealed the nature of the technology well enough that I couldn't pick up such a fundamental distinction, and had to go back to the web site to figure it out. That plus the obvious attempt to associate themselves with the PV industry suggests to me that they are running out of money and are getting desperate for a new infusion of capital. The degree of obfuscation present in that press release is rarely seen in the marketing of healthy companies with solid products.

[Ghost Dog]

12. Rather overhyped, perhaps. On the other hand, could this not be viable technology?

http://www.iaus.com/news02092006.htm

IAUS Inks $150 Million Deal for its New Breakthrough Solar Technology
New Low-Cost Solar Energy

International Automated Systems, Inc. has signed a $150,000,000.00 Purchase and Installation Contract to install a turnkey 100 megawatt power plant for Solar Renewable Energy-1 LLC of Nevada.

The Nevada installation will showcase IAUS’s solar collector lenses which generate steam to its patented turbines for solar thermal generated power. Low-cost energy produced by IAUS’s new solar technology can be used to generate electricity or produce clean fuels such as hydrogen and green methanol (gasoline replacements) at a competitive price. IAUS’s unique thin-film solar panels can be produced at a fraction of the cost of today's photovoltaic solar panels.

After viewing IAUS’s proprietary technology, Mr. Charlie Vaughn, PE, and former President of Nevada Power’s coal subsidiary, and former Vice President of Power Generation for Nevada Power, stated:

“The turbine with the rocket nozzle is so simple; it can be operated almost at will. I’m surprised someone didn’t think of it before now. But, the item that places this solar technology in the same play park with fossil-fuel technologies today is the new solar panel. This is a real break-through in cost for renewable energy.”

The thin acrylic lens focuses the sun like a huge magnifying glass on heat receivers. The solar collector in combination with IAUS’s blade-less turbine equals lower capital costs and maintenance, plus higher efficiency. This enables IAUS and its customers to compete with the increasing cost in the fossil-fuel energy market .... with low cost renewable energy.

Charlie Vaughn is CEO of Solar Renewable Energy-1 LLC. The Contract has conditions for the 550 acre project, including finalizing the funding agreement. The power purchase agreement for the solar power is to be consummated and approved by the Public Utility Commission Nevada.

Rather worrying, though, in the context of the company's other claims, is ths financial statement:

http://finance.yahoo.com/q/is?s=iaus.ob

Income Statement Get Income Statement for:
View: Annual Data | Quarterly Data All numbers in thousands
PERIOD ENDING 30-Sep-06 30-Jun-06 31-Mar-06 31-Dec-05
Total Revenue - - - -
Cost of Revenue - - - -
Gross Profit - - - -
Operating Expenses
Research Development 146 234 235 49
Selling General and Administrative 1,926 217 347 174
Non Recurring - - - -
Others - - - -

Total Operating Expenses - - - -
Operating Income or Loss (2,071) (452) (583) (223)
Income from Continuing Operations
Total Other Income/Expenses Net - (1) - -
Earnings Before Interest And Taxes (2,071) (452) (583) (223)
Interest Expense - - - -
Income Before Tax (2,071) (452) (583) (223)
Income Tax Expense - - - -
Minority Interest - - - -

Net Income From Continuing Ops (2,071) (452) (583) (223)
Non-recurring Events
Discontinued Operations - - - -
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -
Net Income (2,071) (452) (583) (223)
Preferred Stock And Other Adjustments - - - -
Net Income Applicable To Common Shares ($2,071) ($452) ($583) ($223)

[GliderGuider]

13. Back in 1999 I worked for a couple of high tech companies that had financial statements like that.

That's the hallmark of an R&D company looking to complete a Hail Mary pass before the vulture capitalist pulls the plug. No wonder they're hypeing so hard.

[happydreams]

20. Pump and dump? It wouldn't surprise me. It could turn people

off to the entire industry if it gets a bad reputation.

We need to nationalize the fossil fuel industry.

[wordpix]

21. the CEO's sale of thousands of shares tells me something's not right

[happydreams]

18. Thanks for keeping an eye on that.

[JohnWxy]

10. Great news. IT was thought this cost level would not be achieved for another 20 yrs! Recommended!

"IAUS believes its new product is the first solar power technology with legitimate potential to compete with gas and other fossil fuels in the immediate future."

[The Backlash Cometh]

14. Imagine how further we would have been today, if Gore had been able

to take his place in the oval office in 2000.

[happydreams]

19. Or Carter's plan for 20% dependence on solar by 2000 had

been implemented. Instead Big Oil destroyed the fledgling solar power industry by buying up copper, jacking the price up, throwing cost estimates out of whack and wiping them out.

[happydreams]

17. I love reading this stuff. K&R