Ausra, FPL, PG&E heat up solar thermal

Three companies committed to building or buying at least 1,500 megawatts of solar thermal over the next five to seven years in the U.S. this week, giving Palo Alto, Calif.-based Ausra its first deal in the States.

The total cost of the commitments from solar thermal startup Ausra, San Francisco utility PG&E (NYSE: PCG) and Juno Beach, Fla., utility FPL Group (NYSE: FPL) could reach $4.5 billion.

The announcements were made at the Clinton Global Initiative in New York, where Ausra said it would build at least 1,000 MW of solar thermal plants in the next five years. But the company's new president and CEO, Robert Fishman, told the Cleantech Group, "I think we'll do a lot better than that."

"Our goals are far beyond a thousand total, but we thought we would start with that," said Fishman.

The company grabbed Fishman from Calpine just last week, where he served as Exec. VP of Power Operations. Although he doesn't officially start in his new post until Oct. 15, he was in New York this week getting a head start.

The annual philanthropic meeting, headed up by former President Bill Clinton, pulled the three companies into the spotlight before any deals were even signed.

Part of the initiative's effort is to "bring focus to solar thermal power on the world stage," according to the commitment statements.

At least some of Ausra's commitment is already spoken for by FPL, which made its own pledge of 500 MW in the next five years, with 300 MW of that to be handled by Ausra.

PG&E committed to purchase 1,000 MW of new solar thermal generation over the next five years, but it won't say how much of that will come from Ausra.

"We are working with several vendors," said Keely Wachs, PG&E's environmental communications manager. "They are one of the companies that we are talking with."

PG&E's commitment this week is in addition to the 1,000 MW of solar thermal generation the company announced earlier this year with BrightSource and Solel (see Solel's new 553 MW solar thermal plant).

Although their projects are still under negotiation, PG&E and Ausra filed a joint commitment at the Clinton Global Initiative, pegging the total cost of their planned solar thermal plants at $3 billion.

Ausra has been moving fast in the States, getting its first round of funding earlier this month, with $40 million from Khosla Ventures and Kleiner, Perkins, Caufield & Byers.

The company, which was based in Australia until last year, has been around since 2002 as Solar Heat and Power in Sydney.

"What's so exciting for us about Ausra is the technology has been sort of perfected over the last many years and is ready to go," said Trae Vassallo, partner at Kleiner Perkins.

The company uses relatively inexpensive flat plate mirrors called Fresnel reflectors to concentrate the Sun's rays directly on water pipes, boiling the water to run steam turbines, which make electricity.

The company is in the testing and commissioning phase for a 40 MW plant in Australia for state-owned Macquarie Generation. That plant, integrated with a coal-fired power station, is expected to be up and running by the end of the year.

Take a look at Ausra's Australian plant here >>

In the States, FPL is putting up $1.5 billion for its total solar thermal commitment, with a chunk of that going to Ausra for a plant in Florida.

"We're looking to start with a 10 MW, see how the technical specifications and the technology work, and, of course, the regulatory process," said PG&E spokesman Mayco Villafana.

"We'll site it next year, and then we will expand to 300 MW over a three year period," he said.

The company is planning to build another 200 MW in California, but there's no final word on whether Ausra has clinched that deal as well.

FPL and Ausra make a good match, as FPL, through its FPL Energy subsidiary, already has the largest solar thermal array in the U.S. The 310 MW SEGS plant is in Kramer Junction and Harper Lake, Calif.

"They knew what questions to ask," said Ausra's Fishman. "It enabled them to do a very intelligent due diligence process."

In addition to its plans for solar thermal, FPL is putting up $500 million to create an energy management network, and plans to spend at least $400 million for consumer education and products.

With all of these deals and potential deals, Ausra, which is Kleiner Perkins' first solar thermal investment, looks like it has a bright future.

"We invest in a wide range of technologies, and a lot of times when we invest, there's many years of development still remaining. The thing about Ausra is it can make a big impact relatively quickly," said Vassallo.

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