PolyOne Corp A Renewable Energy Play?

We have reported POL Polyone Corp as a renewable energy play. We told you Polyone was producing a part for TSLA Tesla that cut a significant amount of weight from the vehicle.  The story at PolyOne Corp is one of a kind. This company is under followed and we expect that to change.

Whats next? POL has now formed a partnership with Makani. Makani makes Energy Kites. They are making them for Google. PolyOne is producing the Tether for this Energy System.      Read more about the Energy Kite below.POL

The problem

WIND TURBINE ARCHITECTURE IS AT A PLATEAU

Conventional turbines have grown taller, heavier, and more expensive in order to generate more power. These large structures are expensive and complex to construct, and can only be installed economically where the winds routinely reach speeds of between 5-8 meters per second (20-28 kilometers per hour). Unfortunately, less than 15% of all land around the world meets this criteria, meaning this existing technology in its current form cannot scale.

 

The Solution

Energy Kites

Makani’s energy kite uses the same aerodynamic principles as a conventional wind turbine, but replaces tons of steel with lightweight electronics, advanced materials, and smart software.

MORE WIND AT LOWER COST

By using a strong flexible tether, energy kites can reach higher altitudes (80-350 meters) and eliminate 90% of the materials of conventional wind turbines, resulting in lower costs. Because they are more aerodynamic and can access stronger winds, each individual energy kite can generate up to 50% more energy.      Read more about Makani.

MORE POWER AT MORE WIND SPEEDS

Makani’s energy kites are more aerodynamically effective than conventional turbines, allowing them to produce more power at any given wind speed.

So what does this have to do with Polyone? POL is making the “Tether” for Makani. The Tether is a VERY IMPORTANT component for this system.

Here is how it works straight from Makani’s website

The Makani energy kite system consists of four parts:

The Kite

The energy kite simulates the tip of a wind turbine blade, the part of a turbine that makes most of the energy. Rotors on the kite act like propellers on a helicopter to launch it from the ground station. Once the kite is in flight, air moving across the rotors forces them to rotate, driving a generator to produce electricity, which then travels down the tether to the grid.

The Tether

The tether is made of conductive wires surrounding a high strength core. The tether connects the kite to the ground station, and transfers power and communications between the kite and ground station in both directions.

The Ground Station

The ground station holds onto the tether, and is used as a resting place for the energy kite when not in flight. The ground station occupies less ground space and is significantly smaller than conventional wind turbines.

The Computer System

The computer system uses GPS and other sensors along with thousands of real-time calculations to guide the kite to the flight path with the strongest and steadiest winds for maximum energy generation.

 

This isn’t going to be a huge impact to earnings for POL but certainly wont hurt.

 

POL is trading near a 52 week low as of 1-11-2016. We think the future is bright long term. We like the thinking of the CEO.

We cant promise the stock price will not go lower. The markets are a mess right now. But buying after 3-5 down days in a row proves to be a good short term tactic more times than not.

Knowing your buying a quality stock for the longer term helps your mind even more and makes the process easier mentally.

Check how many quarters POL has produced solid numbers and make your assessment.

We think you will feel the same.