U.S. Department of Energy Awards Konarka Solar America Initiative (SAI) Funding

DOE Secretary Samuel W. Bodman Names Selected Solar Technology Projects During Visit to Konarka Headquarters, Lowell, Massachusetts

Lowell, Mass. – March 8, 2007 – Konarka Technologies, Inc., an innovator in development and commercialization of Power Plastic™, a material that converts light to energy, today announced the company is one of 13 selected industry-led solar technology projects to be awarded funding by the U.S. Department of Energy (DOE) as part of President Bush’s Solar America Initiative (SAI), a component of his Advanced Energy Initiative (AEI), announced in his 2006 State of the Union Address.
In the photo – Nobel Lauriat Dr. Alan Heeger; Dr, Samual Bodman, US Secretary of Energy; Howard Berke, Chairman and CEO
In the photo (L to R) – Konarka Chief Scientist & Cofounder and Nobel Laureate Dr. Alan Heeger; Dr. Samuel Bodman, US Secretary of Energy; Howard Berke, Chairman and CEO

The SAI project sponsors, to receive up to $168 million (FY’07-’09) in funding, subject to appropriation from Congress, were announced today by U.S. Department of Energy Secretary Samuel W. Bodman while visiting Konarka Global Headquarters in Lowell, Massachusetts.

“Solar technology can play a crucial role in moving toward affordable net zero energy homes and businesses – which combine energy efficiency and renewable energy produced on-site,” commented Secretary Bodman. “Efficient buildings with solar power generation can help reduce peak demand and ease the need for expensive new generating capacity, transmission and distributions lines as our economy grows.”

Konarka’s project will focus on manufacturing research and product reliability assurance for extremely low-cost photovoltaic cells using organic dyes that convert sunlight to electricity. Partners for this project include NREL and the University of Delaware. Subject to negotiations, DOE funding for the first year of the project is expected to be $1,200,000, with approximately $3,600,000, available over three years if the team meets its goals.

These projects will help significantly reduce the cost of producing and distributing solar energy. As part of the cost-shared agreements, the industry-led teams will contribute more than 50 percent of the funding for these projects for a total value of up to $357 million over three years. These cooperative agreements, to be negotiated, will be the first made available as part of President Bush’s Solar America Initiative.

President Bush’s AEI challenges Americans to change the way we power our nation. As an integral part of the AEI, the Solar America Initiative aims to bring down the cost of solar energy to make it competitive with conventional electricity sources in the U.S. by 2015. The SAI is also part of the President’s commitment to diversify our energy resources through grants, incentives and tax credits and aims to spur widespread commercialization and deployment of clean solar energy technologies across America, which would provide long-term economic, environmental and security benefits to the nation.

Solar energy is a clean, abundant, widespread, and renewable energy source that can be used to increase electricity generating capacity while decreasing greenhouse gas emissions as compared to other energy conversion pathways. Photovoltaic-based solar cells convert sunlight directly into electricity. They are made of semiconductor materials similar to those used in computer chips. When sunlight is absorbed by these materials, the solar energy knocks electrons loose from their atoms, allowing the electrons to flow through the material to produce electricity. The process of converting light to electricity is called the photovoltaic effect.

Craig Cornelius, the technology manager of the Department of Energy Solar Energies Program, “Because of its potential to deliver very low cost solutions to the existing grid-tied markets, the DoE considers organic photovoltaics to be a vital element of our research and development portfolio. As well, with its manufacturability, high volume potential and desired material attributes, it can open up new applications for the market.”

For more information on the solicitation and facts about the Solar America Initiative, visit: www.eere.energy.gov/solar/solar_america.

About Konarka Technologies, Inc.
Konarka builds products that convert light to energy – anywhere. As the leading developer of polymer photovoltaic technology that provide a source of renewable power in a variety of form factors for commercial, industrial, government and consumer applications, Konarka has a broad portfolio of patents, technology licenses and an accomplished technical team. The Company’s technology is focused on delivering lightweight, flexible, scalable and manufacturable products. Konarka Technologies is headquartered in Lowell, Mass., U.S.A., with European headquarters in Nuremberg, Germany, and research and development facility in Austria. For additional information, visit http://www.konarka.com.