6N says lower silicon purity means lower solar prices

Toronto, Canada-based 6N Silicon thinks solar companies should only pay for the purity they need in silicon.

6N is capitalizing on inefficiencies in the silicon supply chain. Most silicon sold is of high-enough quality for the electronics sector. But since solar cells don’t require the same high levels of silicon purity, 6N says it has found a way to dramatically reduce the cost while giving solar companies exactly what they need.

The startup developed a proprietary metallurgic process to purify silicon specifically for multicrystalline solar cells. 6N uses an aluminum solvent to remove impurities from metallurgic grade silicon, which is low cost and readily available.

The process doesn’t require the same high temperatures as used in the Siemens Process for high-quality silicon, which means 6N can use standard metal processing tools and less energy—both of which drive down the cost for the company’s silicon.

6N Vice President of Business Development David Dunnison said no other major polysilicon producer is using a metal-solvent approach for purifying silicon today.

“There has been research in this area, so we didn’t come into the industry with something nobody’s considered before, but nobody has used it because the industry has relied for so long on semiconductor-grade silicon that there hasn’t been a need until the past couple years,” he said.

6N has been operating a pilot line for a year and a production line since September in Toronto, but Dunnison said today the company is trying to quickly ramp up to meet demand from its customers, which he said include some of the largest solar cell manufacturers in the world. The company is also looking to expand its production outside Canada this year.

6N said it raised $5 million from Atel Ventures this week to expand its production lines in the next six to nine months. The startup doesn’t disclose its production capacity or the identity of its customers.

6N’s process allows it to add capacity quickly and cheaply. Its process is easier than the Siemens method, which can give customers more assurance it will deliver on products than with other new polysilicon players, Dunnison said.

The polysilicon industry has rebounded from shortages and sky-high prices last year to a projected oversupply from manufacturers in China and elsewhere (see China solar industry faces rising silicon costs and China solar market in late 2009 spells glut).

Coupled with slowed demand as a result of the financial turmoil, it’s a rough time for polysilicon makers.

But Dunnison said 6N is uniquely positioned to grow in the market because it’s catering to solar companies.

“There’s never a perfect time,” he said. “Maybe coming in the middle of the shortage might have been a good time, but if we execute well this is a great time. The industry knows it needs a long term solution to the silicon problem, and it needs a dedicated solution.”

6N was founded in 2006 and has raised more than $50 million in financing, venture capital and grants, including Cdn$8 million from Ontario in July 2008 toward the company’s $50 million expansion to build a production line and hire new workers (see Takeovers, buyouts and bankruptcy). In July 2007, 6N secured CDN $6 Million in a first round of venture capital financing from Ventures West and Yaletown Venture Partners (see A record week in cleantech deals?).

The company has 100 employees, up from about 40 in September. 

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