Plextronics: Believing in the Revolutionary Power of Plastic
Few would argue that the United States needs to reduce its reliance on oil and develop alternative sources of energy. Solar power has been around for a long time, but the current technology is relatively expensive. What’s needed is a more cost-effective solar cell. Pittsburgh-based Plextronics, Inc. believes the missing ingredient in the equation is plastic.
“Silicon-based solar cells are very expensive,” says Andy Hannah, CEO of the three-year-old spinout from Carnegie Mellon University. While solar cell technology has steadily improved, a substantial leap is required to achieve costs of $1 per watt and below-the tipping point at which solar power can be turned profitably to broader commercial use. “With our technology, printed solar cells can be created for about one-fifth of the price,” he says.
Years in the Making
Hannah, an adjunct professor of entrepreneurship, formed Plextronics in 2002 with Dr. Richard McCullough, dean of the Mellon College of Science. McCullough spent the better part of the 1990s investigating inherently conductive polymers-plastics that create electricity. McCullough discovered regioregular polythiophenes-conductive plastics that had excellent physical and electrical properties, low manufacturing costs and could be produced in high volumes. This discovery met all the requirements for commercialization and led to the formation of Plextronics.
Plextronics, which employs 26, designs and manufactures semi-conductive and conductive inks under the Plexcore brand, which is based on McCullough’s discovery. When printed, the Plexcore ink becomes the “active layer” of a printed electronic device. The active layer drives performance in applications such as solar cells, circuitry (RFID tags) and light-emitting devices (flat panel displays).
Despite being a self-proclaimed “serial entrepreneur,” Hannah turned to BFTP for advice. “When you’re very close to something, you can lose perspective. BFTP gave us a great team that was able to challenge our thinking and help us build our business strategy. The business expertise they provided was an essential ingredient that helped us move from the lab to commercialization.”
In addition to business counsel, BFTP has made five investments totaling $1.1 million in Plextronics since 2002. “The funding has been critical in helping us develop and scale the technology,” says Hannah. “In addition, they also provided us with a number of introductions to potential investors.”
Will Silicon Valley Turn to Plastic Valley?
Plextronics, which received the 2005 Technology Innovation of the Year Award from Frost & Sullivan, has a highly versatile technology that will ultimately end up in a number of different market segments, including MP3 players, PDAs, computer screens and televisions.
“Plexcore technology is more efficient, lasts longer and is less expensive to produce than other competing technologies. In addition, the ink that is formulated can be printed, creating a new generation of electronic devices,” Hannah says. “Imagine something as thin as one-thousandth the thickness of a hair giving off light.”
And if revolutionizing renewable energy and light-emitting devices isn’t enough, Hannah says Plextronics’ technology may cause silicon to lose its luster as the ingredient of choice for powering future generations of electronic chips.
“The next step for us is to work the technology up the food chain into laptops,” says Hannah. “We can turn our polymers into inks that can be printed using standard printing techniques. Think of it: With specialized printers, you could theoretically print a card at home to upgrade your own computer system.”
While Hannah admits do-it-yourself computer upgrades are far down the path, his vision underscores the potentially industry-changing thinking that Plextronics is bringing to the world of printed electronics.
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