Powering Solar’s Next Chapter

Keith Zakheim 0:00

Welcome to the Age of Adoption podcast. I am your host, Keith Zakheim. Today as we do with every podcast, we're gonna ask our guest one question and one question only. What is your age of climate adoption story? A little bit about the age of adoption. We live in an era where enterprises of every shape and size, regardless of industry, must rapidly transform to become more sustainable, climate sensitive, and just.

Keith Zakheim 0:30

My day job as CEO of the marketing public relations firm antenna group. Our agency works exclusively with conscious brands. What is a conscious brand? It is a brand that is conscious of its responsibility to be on the right side of history. Like most businesses, our clients are experiencing a transition from an age of innovation.

Keith Zakheim 0:51

An era in which technologists, entrepreneurs and investors focused on innovating climate and sustainable solutions to this age of adoption, which characterizes the world today. So if you accept the age of adoption hypothesis, then there's really only one salient question to be asked. What is your age of adoption story?

Keith Zakheim 1:17

John Beaver has lived through two distinct era of Cleantech, the early promise and premature timing of 15 years ago, and today's age of mainstream adoption after 25 years, climbing the corporate ladder in the chemical industry, John took a leap of faith in 2009 to become the first CFO of Cali Solar.

Keith Zakheim 1:34

Later named Silicon Materials, a company purifying silicon for solar manufacturing. What he discovered in his role was both exhilarating and sobering. The exhilarating part. Silicon was able to scale from 40 to 450 employees in just 18 months, and they proved that metallurgical grade silicon can make solar cells indistinguishable from traditional electronic grade silicon.

Keith Zakheim 2:00

But unfortunately they could not overcome the policy headwinds in the US as well as Chinese oversupply that ultimately fell the market after a detour is CEO of a dental laser company, Biola, where John once again experienced that adoption curves can be painfully slow even when the technology clearly works.

Keith Zakheim 2:23

John is now back in the solar silicon business as chief financial officer of Hyland materials. To John this time feels different. China now controls 95% of global silicon production creating massive geopolitical risk for the us and in terms of its manufacturing, it cuts emissions by 90%, which traditional manufacturing of solar modules accounts are 50% of the total carbon emissions.

Keith Zakheim 2:54

So reducing emissions by 90% is a big deal. That's on the efficiency side. On the economics. Cylin technology reduces CapEx and opex by 40% and it's incredibly efficient and zero waste. Since it recycles the curve sawdust, that's typically thrown away from wafer cutting. But here's the catch that John knows all too well.

Keith Zakheim 3:19

Proving a technology works in the lab is one thing. Proving it works at commercial scale is the ultimate test of adoption. I know John well. He's been a Boomerang client of Antenna Group and just a good friend to the agency overall. So having him on the Age of Adoption podcast is a real treat. Today on the Age of Adoption podcast, John shares why this moment feels like the tipping point.

Keith Zakheim 3:44

He's been waiting and I think we've all been waiting 15 years to. And how Highland Materials plans to bring back domestic, clean silicon manufacturing to Johnson, Tennessee. Back with John. Faster than you can say, metallurgical Great. Silicon makes perfect solar cells. John, welcome to the Age of Adoption podcast.

John Beaver 4:06

Thank you, Keith. Happy to be here. Good to reconnect with you after a few years.

Keith Zakheim 4:11

I know. So for our listeners, John and I have worked off and on together now for probably 15 years or more maybe. And that's actually gonna, I think, very much relate John to your, to your perspective or how you're gonna share your career journey.

Keith Zakheim 4:25

And I think what's, what's so fascinating, John, about your career as a chief financial officer in various companies in a couple of different industries, but, but what it really does is it represents. Somebody who got into the climate and sustainability space over 15 years ago. So you kind of saw the future in clean technology at that point.

Keith Zakheim 4:47

Choosing to go into a co to work at Silicon, which is a company that was purifying silicon. It was, it was a darling of the, of the clean tech investor space. For some time we did work with them at Antenna Group. So you kind of experienced. The promise of it, but also in some ways, maybe the premature timing of Cleantech innovation and maybe the market not being ready for it yet.

Keith Zakheim 5:09

15 some odd years ago. And now John, after, after working in, in kind of the healthcare industry, you've come back into climate and sustainability, whether you're, you're the CFO of Hyland materials, and again, kind of purifying silicon for the solar and battery battery industries, manufacturing of Polysilicon.

Keith Zakheim 5:28

So you're back in it. Now you're in it a different time, which we call the age of adoption. We think it's an an indus industry's moment for mainstream adoption. So if you could take us through your career journey and kind of reflect on all of that, I threw out a lot out there, but I'm really excited to hear your answer and I know our listeners are as well.

Keith Zakheim 5:43

Sure, Keith. Thank you. Yeah,

John Beaver 5:45

I started my career right outta college in the chemical industry. So, and spent about 25 years in the chemical industry. Started at Monsanto back when they were a Fortune 50 company. Migrated to, I would say, more mid-size, you know, kind of billion dollar companies all after Monsanto, all publicly traded, private equity backed, which is always very interesting.

John Beaver 6:04

Right. And I was CFO of Sterling Chemicals this back in 2009 and. You know, that's all I knew. And chemicals, I would say, you know, we talk about the age of adoption. Things move slow in the chemical industry. There's, you know, not a lot of new chemicals being invented, you know, back, back during those days.

John Beaver 6:23

And I got a call about an opportunity to become the first CFO of Cali Solar, which later become Silicon Core materials. And I was so excited. First of all, I got a chance to move out to California from Texas, which is a little unusual, but, you know, I jumped at the chance and I said, how great is it? A business a and an industry that if you have 3% growth is, you know, that's a great year to an industry that I felt like was really on the precipice of, of booming and something different.

John Beaver 6:52

It was exciting, you know, something that I had really no, no background in other than manufacturing. Right. That was the, I think the, the key linchpin in, in the connection. So started there and we quickly moved from, you know, like 40 employees to 450 employees in like a year and a half. We started up a 55 megawatt cell line in Sunnyvale, California in Get Wafer and Cell, and integrated our silicon manufacturing operation, which was in Toronto into that facility.

John Beaver 7:22

Ended up making 20 million solar cells. Really proved out the concept that we could use a. Metallurgical grade silicon versus electronic grade silicon to make high quality solar cells. And in fact, those solar cells that we made back in 2010, 11, and 12 are still, you know, being tested by NRA and, and showing remarkable properties basically.

John Beaver 7:43

Undistinguishable from those traditional silicon made solar cells. We were looking to build a a, a large scale silicon manufacturing plant in the US at the time. And this is, I think, the common theme of what we'll be talking about today. Policy and politics kind of got in the way and that's when the solar trade war, when China started at the time.

John Beaver 8:04

China was going to be about 90% of our business. So we were gonna export silicon, low cost, low manufacturing costs, low capital cost silicon, but high quality to China. And you know, the tariff war started. And so we ended up pulling the plug on the plant that we were gonna build in Mississippi and started looking outside the us.

John Beaver 8:24

I ended up in Iceland for a number of reasons. A free trade agreement with China, low cost power aluminum smelters out there, which is both our raw material and one of our byproducts. And so we were all set to build that in about 2017. And our financing, I would say went away. Uh, in large part because of the silicon pricing at the time, China had added a lot of capacity.

John Beaver 8:51

It was really an over capacity situation and we just couldn't raise money. So we mothball the technology, you know, great technology still. We, we just couldn't raise money and I went on and decided to do something else. 2017, I got, got a call and moved out to California for the second time and became the C-E-O-C-F-O and then CEO of Biola, Inc.

John Beaver 9:15

Which is a dental laser company once again, far field from what I was ever used to doing, but very similar in that dental lasers. I didn't even know what they were other than maybe teeth whitening when they called me, but what I found over the course of my due diligence. Every dentist in the US and, and surely, you know, at least 50% across the world should be using a dental laser.

John Beaver 9:35

And, uh, my plug for that is if your dentist doesn't use a laser, you're in the maybe 20th, maybe 19th century of dentistry time to get to the 21st century. But the challenge with that company also was, it'd been around for a long time in the, in the adoption curve. It was very slow. It was always going to be tomorrow, right?

John Beaver 9:55

Because everybody that you would tell the story with the, the dentist that we had used in our lasers were all very optimistic and couldn't believe somebody A, wouldn't use that on their patient, and B, a patient wouldn't seek it out. Spent a number of years trying to drive that adoption. Ultimately we ended up selling the, the, the business to a large Korean implant manufacturer.

John Beaver 10:17

And so that was kind of at the end of last year. And during that time, I'd say over the last, you know, since the IRA, the technology that was at SI core got, you know, kind of brushed off again, right out of the mothballs, and it became clear that that time was right to build a plan in the US because of the.

John Beaver 10:35

Inflation Reduction Act policies of the, the tax credits on manufacturing 48 C 48 C under the Biden administration. I think the DO loan guarantee program was, was, you know, up and running and, and very active. We had previously received a DOE loan guarantee, conditional commitment back in 2000 and. 12. So we were very, you know, used to that process, very experienced in that process.

John Beaver 11:00

So I was excited to come back and really finish a job that I felt was, was unfinished back in, you know, 2017, we were all set to kind of close financing on that plant, which will be in Tennessee, and then the election happened. There's a lot of uncertainty around policies and what have you. We have navigated that for the last, um, seven or eight months, and we still feel confident that, you know, this plant would be built in, in Tennessee.

John Beaver 11:26

And that's my journey. Exactly how I wrote it up and thought about it when I graduated college. I.

Keith Zakheim 11:31

All of us. It's like me, when I was growing up, most of my friends wanted to be ball players or firemen. I wanted to be a public relations professional. I don't believe that. Absolutely. Absolutely not the case.

Keith Zakheim 11:41

No, nobody grows up. Wanted to be a public relations professional. Feel blessed to be one, but definitely not what I wanted when I was a kid. So, you know, John, we're gonna get into, obviously the question that is, is the whole reason why you're on this podcast, which I know you. Dying to answer what your age of adoption thoughts are, but before we get there, just to frame the issue a little bit as I see it, so you've got a global polysilicon market that's growing rapidly, 600 gigawatts of solar added in 2024, right?

Keith Zakheim 12:10

So you have an industry that is booming, right? We need more production, we need more of this. China controls 95% of the global production of Polysilicon. Is that, is that correct? So, right. So you've got. All this being done in China when politically and geopolitically, we want to bring everything onshore here or as much as we can of the supply chain and end products and inputs and all of it.

Keith Zakheim 12:35

And then also you have the issue that polys silicon the way it's typically manufactured, accounts for 50% of the total carbon emissions from manufacturing solar modules. So you've got, so ultimately you are solving for and Highland materials are solving for two critical, critical pieces of the economic and geopolitical puzzle here.

Keith Zakheim 12:55

Right? Which is and climate puzzle. You can be ons, you can be manufacturing it onshore in Johnson, Tennessee. That's what you're gonna be doing. Your technology cuts emissions by 90% and the economics work 'cause CapEx, CapEx and opex cut by 40%. So you got de demand domestic manufacturing. It's cleaner and the economics work.

Keith Zakheim 13:16

So to me that is the triple crown of let's get this done, cut the ribbon, and let's start manufacturing. Right. So John, having given you that setup. What is your age of adoption story?

John Beaver 13:28

Well, for us it really is around, looking back on how the, the solar market developed originally, and you have to go back a long time.

John Beaver 13:38

You know, we're talking 20, 25 years ago, and when solar was in its infancy, you have to remember that the, you know, in good way for cell manufacturers were buying silicon, basically scraps from the electronic industry. Nobody built a poly silicon plant to supply solar. They, they, it was a very small part of the overall business and, you know, from, from an adoption standpoint, and really what the genesis of this was, is there's a better way of doing it.

John Beaver 14:07

That's just like, you know, every change, right? We felt like, first of all, you did not need to have electronic grade specifications to make solar grade silicon and high quality solar cells. So we had to prove that because that was a, a hurdle in, you know, every, every customer's mind. Oh, you, you can't do the this way.

John Beaver 14:28

Right? We've done this forever. There's, there's no better way of doing it. And that was really, you know, why the, what we did in, in Sunnyvale, California and proving this concept out was, was so important. So you get past that and then you have the hurdles I said with, you know, the different policies and what have you.

John Beaver 14:45

But then you, you fast forward to today, and I believe that we are on the tipping point of, of adoption and for a couple of reasons. You mentioned the lower cost and, and that's great, but if it doesn't work, you know, the cost doesn't matter. Right? So we've proven that it will work and with, with with solar cells, you know, you can do a lot of testing and.

John Beaver 15:05

Pretty much know the capability of that, that cell or the raw material going into that cell pretty quickly. But still, there's a nagging feeling like any adoption curve, right? Was it gonna be in five years, 10 years, 15 years? Well, we are now 15 years removed from those first cells being in place. So I think that's, you know, that's a testament to the technology.

John Beaver 15:27

And then you also, I think for us, what we've realized, and this is. I would say over the last six months, we've realized there's so much waste in the current wafer manufacturing process. So if you're familiar with how the wafers are, are made, you know you have an Inga and then they're cut using usually diamond wire to cut through it, and you have what's called curve.

John Beaver 15:51

Which is, I'm not a technical guy, so I'll call it sawdust from the cutting of the, of the init to the, to the wafer. And that is just, I mean, meantime thrown away. Manufacturers are looking for ways to get rid of it, and as cells are getting thinner and thinner, think about a higher percentage. That cut in the sawdust is waste now.

John Beaver 16:13

Right? And so by our estimates, anywhere from 40 to 45% of the OT goes into this curve waste. Well, because of our technology, we're able to take that curve. Recycle it into our process and basically turn that waste product into, you know, just another raw material for us. Like a metallurgical grade silicon would be coming in as a raw material.

John Beaver 16:38

So that's, you know, been great, but now we have to prove it right. And that's where it gets to the age of adoption. We believe we can do it. We have all the papers and studies and everything, but we need to build a, a pilot plant and get curve from a manufacturer, recycle it, let them grow and ot and that's really the challenge from the age of adoption now is, you know, you have to go from a white paper and studies to actual pilot plant manufacturing and that's the challenge.

Keith Zakheim 17:08

Yep. Yep. And John, if, if before we, before we close the episode, I know that of course the, the primary application is solar silicon, but I also know that there's opportunities for di diversification beyond that around aluminum, silicon master alloy, and, and some of the, I guess, automotive and aerospace and building materials that would benefit from that.

Keith Zakheim 17:28

Poly chloride. Can you reflect a little bit Sure. On those other

John Beaver 17:31

opportunities? Yeah, I'm glad you brought that up, Keith. I would say in 45 years of my manufacturing experience, this is the only process that has zero waste that I've ever worked at. And the reason for that is we basically take I allergic grade silicon.

John Beaver 17:46

Add aluminum to it. The aluminum acts as a sponge to take impurities out, and then we're left with silicon that has aluminum on the outside, go through an acid wash step and make poly aluminum chloride. So you think aluminum's coming in that creates kind of a impure aluminum, but a master alloy that is very critical to the automotive industry.

John Beaver 18:08

We sell that. At, you know, the first part of the process. And then as we wash the, the remaining aluminum off the crystals of the silicon, that creates a poly aluminum chloride, which is used in wastewater and municipal, uh, drinking water purification processes. All over the world and obviously including the us.

John Beaver 18:28

So it's really a closed loop system. It has great environmental characteristics and and advantages. But with that, you know, which is always the, the home run, it's not only great for environment, but it's great for profitability too, because you're not wasting anything.

Keith Zakheim 18:44

Yep. Well John, thank you so much for joining us on the Age of Adoption podcast and we're just excited to have you back in the climate and sustainability community.

Keith Zakheim 18:53

It's been too long, but you know, we got the band back together again. What could be better? Yeah, Keith, I like

John Beaver 18:57

that. My friends, when I went to, from chemicals to to renewable Energy, and once again, Houston, so there wasn't a lot of renewable energy back in, you know, 15 years ago. They say, you know, you're gonna have to work in the renewable sector.

John Beaver 19:10

You work 25 years in chemicals, you have to work like 125 years in the renewable sector to make up for the chemicals, you know, like dog year seven to one or something to do pets. So I'm on my way.

Keith Zakheim 19:22

Fantastic John. Good to see you again. Good luck with everything at Highland and look forward to being in touch soon.

Keith Zakheim 19:27

Thank you, Keith. I appreciate your time. The age of Adoption podcast features CEOs, investors, entrepreneurs, and policymakers sharing their climate and sustainability business transformation stories. Episodes can be found on your favorite podcast apps, including. iTunes and Spotify. The Age of Adoption podcast is brought to you by Antenna Group.

Keith Zakheim 19:49

Antenna is the home of conscious brands. We partner with companies that don't wait for change to happen. These brands shape the future, are awake and already moving. Unsure if you are a conscious brand. Or even if you are one, whether you are positioned as one, please visit our website@www.antennagroup.com and take the Conscious Compass Assessment, a groundbreaking tool that enables enterprises to assess their brand against the eight traits of brand consciousness.

Keith Zakheim 20:23

At Antenna, we partner with companies big and small from growth stage to Fortune 100 to tell their climate and sustainability stories. So once again. If you're interested in joining the Conscious Brand Movement and learning more about Antenna Group, please check out our website at www.andantennagroup.com.

Keith Zakheim 20:42

Ping us on LinkedIn and make sure to visit the conscious Compass.

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