WorldWater & Power to Acquire ENTECH
WorldWater & Power Corp. announced that it has entered into a Letter of Intent (LOI) with ENTECH, Inc. of Keller, TX, to acquire the company upon completion of the necessary due diligence and after obtaining appropriate financing. ENTECH, a private company formed in 1983, is a developer and manufacturer of advanced concentrating solar photovoltaic and thermal technologies for terrestrial and space power applications.
With the combined technologies of WorldWater & Power and ENTECH, solar systems will be capable of generating and delivering electrical and thermal energy on site at prices competitive to retail prices without relying on rebates. ENTECH's patented concentrator technology also allows for the installation of massive solar "farms" with greatly reduced requirements for solar cell materials (silicon or multi-junction) and, when used in conjunction with WorldWater & Power's technology, greatly reduces the reliance on rebates or other incentives for economic installations. Due to the advantages of ENTECH's concentrator, only 5% of the amount of silicon used in flat plate solar modules is required by current ENTECH modules to generate the same electrical power. For example, 50 kilowatts of solar cells used in conventional flat plate solar modules generates one megawatt of electrical energy using the ENTECH modules.
Consequently, the ENTECH technology greatly lessens the impact of the silicon material shortage currently constricting flat plate solar panel supply. ENTECH is also developing even more cost-effective systems using multi-junction solar cells. ENTECH concentrators utilize a two-axis tracker to follow the sun's position throughout the day, maximizing energy production.
ENTECH's technology can produce photovoltaic electricity, or thermal energy (heat) for commercial uses such as for heating and/or air conditioning. When applied in a combined fashion for onsite power applications, the cost to the customer can be significantly less for electricity generated and for BTU of heat provided versus separate competing systems currently on the market, and can also be competitive with current retail energy prices.
WorldWater & Power plans to purchase ENTECH through a newly-formed, wholly-owned subsidiary. Financing will be obtained primarily through funding of the capital structure of the new subsidiary, and it is not anticipated that WorldWater cash or new shares will be utilized in the transaction. A portion of the value paid by WorldWater will be in the form of earn-out provisions.
As a WorldWater subsidiary, ENTECH will maintain its identity, location, and business operations in both terrestrial and space solar energy. ENTECH will continue to perform its highly successful contract work for NASA, the U.S. Department of Defense, and other customers, as well as its internal R&D programs leading to improved future products.