ClearVue Technologies (ASX:CPV): About to make big bucks from solar generating glass

ClearVue Technologies (ASX:CPV) may be one of the best ways for investors to gain exposure to the decarbonisation thematic. This company may not immediately strike out as an obvious candidate in the way that lithium or electric vehicle stocks might, but we think investors should give it a close look.

Introduction to ClearVue Technologies

ClearVue is a manufacturer of solar-powered glass windows. Its core product is ClearVuePV that is a frame of glass with a layer of micro and nano-particles that reflect the sun’s rays towards embedded solar cells. The solar rays are converted to energy and the system allows up to 70% of the light to pass through, without obstructing the view. ClearVue can operate regardless of climatic conditions and it can do so autonomously.

Since commencing development in 2011, the company has increased the amount of electrical output from the glass, all while shrinking the unit. The latest generation can produce up to 33W peak of electric output per square metre of glass, even in spite of being 48.5% thinner and 40% lighter than the previous generation.

The company is able to manufacture with a low-capital intensity and has a highly scalable licensing model, with potential for multiple revenue sources (including, but not limited to, licensing fees and royalties on sales). CEO Martin Deil has used the metaphor of a ‘Lego model’ approach to describe how the model works. ClearVue will provide its clientele with a kit of component parts easily incorporated into standard windows, transforming them into power-generating windows. The components will be assembled locally and shipped in smaller, lighter packages. ClearVuePV will be integrated seamlessly into production lines – it is designed for this to be possible

Below is a prototype of what ClearVue’s technology could look like on a 40-storey building. This research was conducted by independent Canadian consultancy Footprint to produce building energy modelling on a high-rise building. It showed sufficient solar could be generated on-site to meet between 50-100% (or more) of the building’s energy demand, subject to the project’s location and site shading consideration.

Source: Company

Substantial progress has been made in the last few years

Over the last couple of years, ClearVue has made substantial progress with its technology. It has demonstrated the commercial potential of its technology and obtained its first distribution agreements as well as commercial orders. Several necessary certifications have been obtained too, ensuring compliance with international building standards and regulations, with several more pending.

Compared to 12 months ago, ClearVue has 80% more executed license agreements, a licensee pipeline quadruple what it was 12 months prior, and project quotes now more than triple.

CPV is in the middle of a 12–18-month period during which it intends to realise its commercial plan and is gradually seeing its plans come to fruition. The company already has achievements to boast of including more than tripling project quotes and its licensee pipeline, as mentioned above.  

The company is positioning itself for further growth including by building up a commercial team in the key markets (particularly the USA) as well as building up its capacity and processes to meet future sales volumes. It has a target of 23 new licensees by the end of CY25, which would amount to a total of 31 – specifically 7 in the first half of the year and an extra 16 in the second half. Growth will not only come from deals with new clients but also from expanding deals with existing clients. For instance, ClearVue anticipates expanding its agreement with Aria Holdings (Alutec) to cover a subsidiary in India and one in Saudi Arabia, to target both jurisdictions’ construction markets. 

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Considerable upside potential exists

Looking more broadly, ClearVue is facing a global market opportunity that was US$23.7bn last year and is expected to grow at a CAGR of 21% to US$89.9bn by 2030 – namely, the Building-Integrated Photovoltaic (BIPV) Market. This growth is expected to be driven be growing demand for renewable energy, energy security awareness, favourable government regulations and global commitments to reduce greenhouse gas emissions.

Our friends at Pitt Street Research have covered the company since initiating coverage in February 2024, and published a fresh note earlier this morning. Pitt Street has valued ClearVue at $0.89 per share in a base case scenario and $1.20 in an optimistic scenario, using a blended DCF-Relative valuation. These figures represent upside of 366% and 533% to the share price as at July 2, 2024.

Over the next 12 months, we believe there is more upside potential to be realised as the company generates revenues from its products and comprehensive business pipeline.

The report from Pitt Street Research is an issuer-sponsored report.

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