VHF



		15.6% VHF Technologies SA (VHF), based in Yverdon in Switzerland, develops and manufactures thin-film solar cells, using its proprietary very-high-frequency plasma technology to deposit thin layers of amorphous silicon onto plastic substrates.

The VHF product is a flexible photovoltaic (PV) solar cell, as opposed to the well-established rigid crystalline silicon solar panels on a glass substrate, which currently comprise 90% of the PV market. Owing to its highly flexible substrates, VHF is able to deliver innovative solar consumer products (e.g. rollable battery chargers) and to provide integration solutions for the building industry and industrial OEM markets.

VenFin invested CHF3.2 million in VHF, which is still in a product development phase. The investment in VHF is one of three that VenFin has made to date in the solar industry.

Overview of the year to 30 June 2007

In June 2006, Q-Cells AG from Germany, the second largest manufacturer of crystalline silicon-based solar cells in the world, made an investment of CHF10.8 million in VHF. In addition to the expansion of its core business of crystalline silicone cell manufacturing, Q-Cells has made five investments in thin-film PV technologies, one of which is VHF. In February 2007, Q-Cells exercised its option to increase its shareholding in VHF to 51%. The new capital injection will enable VHF to increase its production capacity in Yverdon from 100 kW to 5 MW. This increased capacity will be focused on the consumer market.

In May 2007, Q-Cells and VenFin agreed to invest in a 30 MW factory to be built in Thalheim, Germany. VenFin’s commitment to this project is €9 million, which will result in a small increase in its VHF shareholding to 16.7%.

The future

The upgrade to 5 MW in Yverdon is expected to be completed by March 2008, which will allow VHF to start servicing the pent-up demand for consumer-type PV products in 2008. The 30 MW factory in Thalheim is dependent on the approval of government incentives and will take approximately 18 months to construct. The VHF product’s main competitive advantages are, firstly, the fact that the product is lightweight and flexible, allowing for total integration on building elements of various shapes and enabling roll-to-roll manufacturing; and secondly, the cheaper plastic substrate that is used, which should provide a substantial reduction in the cost compared to glass substrate panels.