Boeing Licenses XR700 Solar Power Technology to Stirling Energy Systems

SEAL BEACH, Calif., March 30, 2010 -- The Boeing Company [NYSE: BA] and Stirling Energy Systems (SES) have formed a strategic partnership to complete the commercialization and deployment of Boeing's XR700 high-concentration photovoltaic (HCPV) solar power technology. Through a licensing agreement with Boeing, SES has acquired the sole rights to develop, manufacture and deploy the HCPV product globally.

SES will lead the commercialization process, with Boeing providing technical program development and engineering expertise under a contracting partnership. Tessera Solar, an SES affiliate, will be responsible for development, construction and operation of solar power facilities using the XR700.
Boeing began developing the XR700 technology in 2007 in collaboration with the U.S. Department of Energy's Solar Energy Technologies Program. The technology development phase is expected to continue for the next two years before achieving commercial-scale deployment in 2012.

"Boeing Defense, Space & Security's Energy Solutions business seeks to create new products and services in emerging energy-technology markets, including renewable energy and Smart Grid," said Tim Noonan, vice president, Boeing Advanced Global Services and Support. "Working with Stirling Energy Systems, an established leader in concentrating solar power generation, allows us to leverage Boeing's leadership in systems development, materials expertise, and reliability engineering to create jobs and to help America's vital energy infrastructure go green."

The XR700 technology uses a non-imaging optical system to concentrate sunlight by a factor of 700 onto high-efficiency, triple-junction solar cells. The cells currently are supplied by Boeing subsidiary Spectrolab, which in 2009 achieved the world record for terrestrial concentrator solar cell efficiency, at 41.6 percent.

Boeing is in the development and construction phase of a 100-kilowatt facility at California State University, Northridge, using the HCPV solar power technology. Boeing and its subcontractors also have completed the development of an automated 2-megawatt per year production factory in Detroit that is producing and assembling the solar arrays for the Northridge solar facility. Installation of the solar arrays at the Northridge facility is expected to begin in the second quarter of 2010, with the solar facility expected to be operational during the third quarter.
"Boeing's selection of SES and Tessera Solar as strategic partners for their solar power technology demonstrates the strength of the businesses' technology and development expertise," said Jim Barry, CEO of NTR plc, majority shareholder of SES and Tessera Solar. "This agreement will complement SES and Tessera Solar's existing utility-scale offering and strengthen their position as solar energy leaders."

The HCPV product will extend SES's solar energy portfolio and is expected to give Tessera Solar access to more project-development opportunities, especially in the distributed-generation (under 50-megawatt) sector. Tessera Solar will continue to deploy its SunCatcher -- a solar power system that uses an SES engine to convert the sun's heat to electricity -- for large-scale (greater than 50-megawatt) projects.

Later this year, SES and Tessera expect to begin construction on three large SunCatcher power projects, totalling over 1,600 megawatts, in Texas and California. The XR700 HCPV technology will be aimed at smaller-scale projects of 50 megawatts and less.
"This venture with Boeing represents an ideal opportunity for SES to extend our reach into the solar market for future technology deployments with a product that shares many of the SunCatcher's key differentiating features -- scalability, low water use and high efficiency," said SES CEO Steve Cowman.

"We are pleased to obtain the rights to deploy a complementary technology to the SunCatcher and therefore offer an additional product to suit our potential customers that are interested in smaller-scale projects," said Tessera Solar North America CEO Bob Lukefahr.