Photovoltaic plastic firm rakes in $23.8m, raising prospect of commercial launch

Massachusetts-based solar technology firm Konarka confirmed last week that it has raised $23.8m (£14.7m) as part of its seventh funding round, sparking speculation that the company is nearing commercial-scale production.

The company, which was founded in 2001 as a spin-off from the Massachusetts Institute of Technology (MIT), filed documents with the SEC revealing that it had received almost $24m from investors, including existing backers Draper Fisher Jurvetson, Good Energies and 3i Group.

The company has already received over $150m in private investment and $20m from the government, and the latest funding round will further cement its position as one of the most well-backed solar technology firms in the US.

The fresh funding immediately sparked speculation that after something of a false start in 2008, the company is now edging towards full-scale production.

Konarka originally launched its first manufacturing facility as the global recession gathered pace in October 2008, and despite a number of high-profile pilot projects, the company has struggled to move to large-scale production of its patented Power Plastic material.

However, the teething problems appear not to have dissuaded investors attracted by a technology that Konarka claims will deliver significant advantages over existing thin film solar cells.

The company holds more than 350 patents around its photo-reactive polymer, which like some other thin film solar cells can be cost-effectively printed onto lightweight flexible substrates.

However, unlike conventional thin film solar cells, Konarka claims its polymer can effectively generate energy even when the sun is at low elevations, resulting in higher efficiencies and even allowing energy to be generated from indoor light conditions.

The company has also successfully shipped small quantities of its technology and has a number of customers in place, including German sportswear firm Neuber, which has integrated its solar cells into some of its bags, and construction firm SKYShades, which received the company's first shipment of Power Plastic back in April last year.