Plextronics, a Pittsburgh-based printed electronics developer, said today it raised $20.6 million in Series B financing.

The company believes its technology could eventually reduce the cost of solar cells to below $1 per watt (see Solar goes organic).

Plextronics said it plans to use the financing to expand its research and manufacturing capabilities, and boost its sales and marketing activities.

Almost half of the money in this round came from Belgian chemical company Solvay, which put up $10 million for a minority stake in Plextronics.

"Solvay has a clear vision of building long-term, vibrant platforms in solar technology and printed electronics," said Andy Hannah, Plextronics president and CEO.

Plextronics said it expects to set up a joint development agreement with Solvay that focuses on technology from Solvay's other partners in the organic electronics field.

Other investors in this round of funding included Firelake Capital Management, Birchmere Ventures, Draper Triangle Ventures and Newlin Investment.

Plextronics said it has raised a total of $37 million in equity capital over the last five years.

Founded in 2002 as a spinout from Carnegie Mellon University, the company's ink technology is already being used commercially in radio-frequency identification, or RFID, tags.

The company sees the market for printed electronics, which was $1 billion in 2006, exceeding $300 billion within 20 years.