I've been reading about the opportunity GTAT has to profit from Saudi Arabia's planned investment in renewable energy. TG shared on the conference call they still believe they are positioned to benefit from this opportunity but it's just moving at a slow pace.
If you want to read a good article, just google "PV Magazine white paper" and you should be able to get more details about the opportunity.
Saudi Arabia's goal is 24GW of renewable energy (mostly solar) by 2020 and 54GW by 2032. They have been talking about it for quite a while now but they are actually moving forward with real dates and deadlines.
This opportunity should be a slam dunk for GTAT with its HiCz and I think TG knows it. Maybe that's why they hired Linda Reinhard.
From what I see Saudi wants to end up buying just the energy, giving preference to local impact. I'm not quite seeing how GT benefits out of this. Are we assuming that they will actually be growing their own polysilicon and building solar panels in Saudi Arabia? Why not just purchase panels in a competitive market? I must be missing something.
Here is a TG quote from the most recent conference call in response to a question about the Saudi opportunity:
"I've got a team in Saudi right now, as we speak. As we've said, we expect to see the engineering orders towards the tail end of this year and then reactor orders following, assuming the projects move forward in 2014 and beyond. We're in very good competitive position. Our lone European competitor of any merit, as you know, is just coming out of bankruptcy. Nobody's going to bet their future on that. And we still have the best technology around. And so we're in very good position and we're moving at the pace in which the decision making in Saudi is going to move. So -- but I think, it will probably be second half for the engineering orders now versus first half, based on the pace at which those projects are moving."
Of course if this materializes it will be huge revenue. I just wanted to highlight that even though the process is slow it is moving along.