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Konarka Lands $45M, R&D Deal With Chemical Makers


Solar startup Konarka Technologies announced on Monday that it received $45 million in equity financing from the U.S. division of French oil and gas giant Total. Konarka also announced that it signed R&D agreements with Total’s chemical subsidiaries to further development of the startup’s thin-film, organic solar cell technology.

The “strategic alignment” will give Konarka access to the oil and gas company’s worldwide resources, assets and operations. Konarka Chief Executive Rick Hess said that working with Total’s chemical groups would help the startup reduce costs and increase system performance.

Following the funding, Total will become the leading shareholder in the Lowell, Mass., startup with slightly less than a 20 percent ownership stake.

The deal comes as Konarka prepares for mass production of its solar cells at a newly opened plant in Massachusetts. The plant is to eventually have a 1 gigawatt production capacity and is scheduled to begin shipping cells by March of next year.

Konarka is a leading developer of so-called organic solar cell technology. The startup uses semi-conductor polymer materials to convert the sun’s rays into electric power.

This next-generation technology promises to drive down the cost of solar power while offering a wide range of applications because of its flexibility and light weight.

In addition to taking an equity stake in a promising startup, the agreement will help Total grow in the thin-film solar market. The oil and gas company already has invested in crystalline silicon-based cell production through two companies—Belgium-based Photovoltech and France’s Tenesol.

Prior to the Total deal, Konarka raised more than $100 million in venture funding and $18 million in government research grants.

Total’s subsidiaries Atotech, Bostik, Hutchinson, Sartomer, and Total Petrochemicals USA will cooperate with Konarka on R&D.