The Morgan brothers have much to give thanks for this holiday weekend.
The co-founders of Toronto start-up Morgan Solar Inc. have just closed their first round of financing, and one of their strategic investors ranks among the world's largest electrical utilities.
Spanish utility and renewable-energy powerhouse Iberdrola Group has invested $2.5 million (U.S.) in Morgan Solar as part of a $4.7 million round of financing that will be used to build a pilot production line for the new concentrated solar photovoltaic (CPV) panel, called Sun Simba.
First profiled in the Toronto Star last November, Morgan Solar has invented a flat, low-cost optic that can capture direct light and concentrate it as if 1,000 suns are beaming down on it.
The concentrated light is guided to a high-efficiency solar cell, about the size of an infant's thumbnail, which is expected to produce electricity at much lower cost than today's conventional systems.
"We have reviewed hundreds of investment opportunities over the last few years and only invested in Morgan Solar and four others," said Pedro Velasco, a director at Iberdrola.
"We see a winner in the making and we took a position as soon as we saw it."
Apparently, this is Iberdrola's first investment in a solar technology company, which on its own says something. The utility has the world's largest portfolio of renewable-energy investments, but it's known mostly as being the top developer of wind projects on the globe. It's a good ally to have.
Other investors include Turnstone Capital Management LLC of New York and Nypro Inc., a large plastics injection moulding company based in Massachusetts. Nypro's interest is strategic, as the company is an expert in the manufacturing processes that Morgan Solar intends to use.
"That these companies got in early with us makes me realize how big this could be," said John Paul Morgan, 31, who invented Morgan Solar's CPV technology and incorporated the company in 2007.
Morgan is an optical engineer who got his start at telecom giant JDS Uniphase Corp. in Ottawa. He runs the company with his brother, Nicolas, who is director of business development.
Their father and founding investor, Eric Morgan, is chairman. The family retains majority control of the company.
Last month Morgan Solar moved into a new headquarters on Ordnance St., just east of Liberty Village, where its technology will be demonstrated. Commercial manufacturing of the Sun Simba panels is expected to begin in 2010, starting with a pilot production line. The company is in discussions to secure up to $3.8 million more as an add-on to the financing round.
"We have a lot to prove before we can start making predictions, but we expect the head count to go up fast," said Nicolas Morgan, 35, adding that the current payroll of 13 is expected to double by mid-2010.
The company is also searching for a chief executive officer who can lead it through its initial growth stage.
It's a shame that so far – and I emphasize so far, because discussions are ongoing – no Canadian investors have locked into this promising homegrown company. By setting up its new premises in Toronto and centring its R&D and initial manufacturing here, Morgan Solar has signalled that it plans for now to remain in Ontario.
Quite frankly, this province isn't a bad place to be if you are a developer of Ontario-made solar panels. Local content rules contained in the province's new feed-in-tariff program for renewable power have solar developers scrambling for made-in-Ontario product. The Sun Simba, which is designed for use in large solar farms, can help serve that local mandate once Morgan Solar fires up its commercial production line.
Expect more from this company. John Paul Morgan is bursting with inventiveness. A building-integrated solar window is already under development. I got a sneak peak at an early prototype and the creativity is astounding. The two brothers have hinted there are other top-secret products in the wings but they'd have to off me if I learned about them now.
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