SAGE plans global expansion of nanotech windows

Faribault, Minn.-based SAGE Electrochromics has embarked on a $120 million expansion of its production line in order to satisfy demand for its smart windows and skylights that reduce energy use in buildings. 

SAGE said this week it raised $20 million from return backers Good Energies, semiconductor equipment maker Applied Materials’ venture capital arm Applied Ventures, and Belgian advanced materials and coatings maker Bekaert to further product development and international expansion (see Ethanol and building materials soak up the green).

“We’re looking to really scale this rapidly, given the climate now focused on energy technology and energy efficiency,” CEO John Van Dine told the Cleantech Group today.

Energy efficiency has been one of the top priorities of the Obama administration in the U.S. and the UK government (see U.K. offers £31M for energy efficiency), as well as one of the industry’s biggest focus points for 2009 (see Nine clean technology predictions for 2009).

“Once you have the ability to control the flow of the sun’s energy and light into the building, you have the power to reduce energy consumption in buildings quite significantly by lowering air conditioning costs and lowering the usage of artificial lighting inside,” Van Dine said. “Those are two are the largest consumers of electricity in buildings.”

Energy use in commercial and residential buildings accounts for 39 percent of energy usage in the U.S., according to the Energy Information Administration. Lighting accounts for 21 percent of energy use in commercial buildings, while cooling accounts for 8 percent and ventilation 7 percent.

To date, SAGE has raised about $45 million in equity (see China clean coal IPO) and $35 million in grants from various U.S. agencies including the Department of Energy, Department of Commerce, National Science Foundation and Department of Defense.

The company’s SageGlass product can darken on demand to block sunlight and heat. The panes are coated with five layers of ceramic materials, which have a total thickness that is less than 1/50 of a human hair. When voltage is applied, ions travel from one layer to another layer, where a reversible solid-state change takes place, causing the coating to tint and absorb light. Reversing the polarity sends the ions back to their original layer, clearing the glass (see Windows get smart in green building).

The energy requirement is low—about the equivalent of a 60 watt bulb to power 1,500 square feet of SageGlass. But the potential energy savings are significant, Van Dine said, because they cut down on the two biggest portions of a building’s energy load: the air conditioning and lighting. The glass also eliminate the need for blinds and curtains, while improving the quality of light, which can increase employees’ productivity, Van Dine said.

Next on the agenda is to develop self-contained windows powered by embedded solar cells. The company has spent just shy of $100 million on product development and holds 80 patents. The work has been third party verified by the National Renewable Energy Laboratory in Golden, Colo., and others.

The company began shipping products from its Minnesota factory in 2006, but Van Dine declined to release the production capacity for this or the new plant. Site selection is underway across the U.S., he said.

Take a look at the company's factory here >>

The vast majority of the company’s sales are in North America, but SAGE plans to expand in international markets as the company grows.

Greg Kats, senior director and director of climate change policy at Good Energies, noted that global markets could be significant for SAGE. India expects to have 1 billion square feet of green buildings by the end of 2010, and China still has significant amounts of commercial construction scheduled, despite the downturn, he said.

“The number of green buildings continues to rise very rapidly,” he said.

McGraw-Hill Construction Analytics projects that the green building sector will jump from $12 billion in 2008 to $60 billion in 2010, in part because of requirements for government and commercial buildings in California (see China pushes for energy efficiency and What's next in driving green building). But that’s no longer the sole driver, Kats said.

“Early buyers of technologies for green buildings were in the public sector, but now the large majority of the equipment purchased for green building technologies like this comes out of the private sector,” he said.

SAGE was founded in 1989 and has 100 employees.

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