Sustainable Energy Technologies Ltd.
TSX VENTURE : STG

Sustainable Energy Technologies Ltd.

October 12, 2010 08:30 ET

Sustainable Energy to Manufacture SUNERGY™ Inverters in Guelph Ontario

TORONTO, ONTARIO--(Marketwire - Oct. 12, 2010) -

Highlights:

  • Canadian Inverter Technology to Be Manufactured in Guelph Ontario for Ontario and US Markets
  • Guelph based Melitron to Provide Key Components and Final Assembly and Test Facility
  • Start-Up by December 2010 to Meet Rapidly Growing Ontario and US Order Book
  • 4 MW per month capacity in Q1 2011 with 8 – 10 MW total capacity by Q4 2011 

Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable Energy") Canada's leader in solar inverter technologies announced today that it will locate its main North American inverter assembly and test facility in the City of Guelph, Ontario. The high volume assembly and test facility will be operated for Sustainable Energy by Melitron Corporation, a Guelph based manufacturer which will also supply enclosures for the SUNERGYTM inverter from its adjacent manufacturing plant.

Production of the SUNERGY inverters will begin at the facility before the end of this year, and the companies are targeting Canadian production of approximately 4 MW per month by Q1 2011, with expansion capacity up to 8 MW – 10 MW per month by the end of 2011. The facility will serve Ontario and US markets and will create new direct employment for approximately 60 - 80 persons at full capacity in the combined Melitron and Sustainable Energy workforce, creating as many as 300 new direct and indirect jobs in the Guelph area. 

The Company intends to maintain its sub-contracted facility in Cambridge, Ontario and will continue to build products for the European market through its sub-contract facility in China. 

"We're delighted that Sustainable Energy Technologies has chosen Ontario as its North American headquarters, bringing up to 300 new jobs to the province as well as supply chain opportunities for local businesses," said Sandra Pupatello, Minister of Economic Development and Trade. "This announcement highlights the success of our government's Green Energy Act."

Sustainable Energy's solar inverter technology is one of a new generation of "parallel" inverter technologies which are changing the face of the solar industry by increasing energy yields by as much as 25% under real world conditions and by enabling solar PV systems to be designed and installed by mainstream building trades. The result is a lower cost of electricity and better returns on investment.

Sustainable Energy's manufacturing model outsources manufacturing of 4 key sub-assemblies to specialized contract manufacturers around the world with the Company assuming direct control over final assembly and testing of the inverter at locations close to its customer base. Because sub-assemblies are interchangeable among different products they can be produced in higher volumes and shipped in bulk to the point of final assembly and testing enabling greater flexibility in responding to market changes; better quality control; and an overall lower cost of manufacturing.

Significantly, the model levers the simplicity of the final assembly process and the partnership with Melitron to enable Sustainable Energy to quickly expand production capacity with very limited capital investment. 

"Melitron's highly automated facility, its commitment to product quality; and its ability to effectively manage the final steps of the supply chain were critical to enabling what will be a very successful partnership," said Justin Holland Vice President of Sustainable Energy responsible for Supply Chain Management and Operations. 

"We are very excited about our partnership with Sustainable Energy which puts Melitron at the forefront of the solar PV industry and which will open new long-term markets in the US," said Ted Turner CEO of Melitron. "This was only possible because of the Premier's commitment to bringing new green jobs to the Province as part of his Green Energy program."

Demand for solar inverters will continue to grow at unprecedented rates with the most recent report by iSuppli Corporation forecasting 20,000 MW of new installations in 2011 and reaching 37,000 MW of new installations by 2014. Growth is being driven by new expanded demand in the US and in new European markets and lower PV module commodity prices due to a continued oversupply in solar PV module production capacity, mainly in Asia. 

About Melitron Corporation

Founded in 1995 Melitron Corporation www.melitron.com is a full service contract manufacturer specializing in precision metal fabrication employing 120 people in Guelph Ontario. It designs and manufactures precision metal components, enclosures and assemblies primarily for Original Equipment Manufacturers (OEMs) competing in technology markets.

About Sustainable Energy: Sustainable Energy www.sustainableenergy.com is a Canadian company which designs manufactures and distributes power inverters for grid-connected solar PV systems around the world. Power inverters are a critical enabler of every solar power system. Sustainable Energy's patented technologies represent a significant breakthrough in power inverter design and capabilities for all forms of distributed generation and smart grid applications. The Company's technology is Canada's most significant contribution yet to the growth of solar power globally.

The extra low operating voltage (50v – 100v) of the SUNERGY platform enables a system architecture that is inherently safe and that can be installed and maintained by most building trades without the need for PV specialists, significantly reducing the installed system cost and increasing investor yields. The SUNERGYTM inverter is rated for operating conditions ranging from minus 40 degrees Celsius to plus 50 degrees Celsius. 

Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the Canadian US and International Patent Offices

Forward Looking Information

The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, it includes: statements concerning the impact of our technology on solar PV system performance; statements concerning forecast production of SUNERGY inverters and targeted production capacity and statements concerning the potential for growth in the solar industry. While management believes these statements to be accurate they are dependent on a wide range of factors beyond management's control and should not be viewed as a guarantee of the specific outcome. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties.

Many factors could cause the Companies' actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Companies do not undertake any obligation to release publicly any revisions to forward- looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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