Presentation to the Board of Directors of the Optoelectronic Industry Development Association (OIDA), November 18, 2008

1. Green Photonics
Trends and Opportunities
Phil Wright
Consultant and Analyst
OIDA
wright@oida.org
11/18/2008
OIDA: Optoelectronics Industry Development Association

2. 15 mins and <<100 slides
What is Green Photonics?
Why is it Green?
Why is it important?
Is it a large market?
What are the technologies and markets?
Where is it going through 2020??
What needs to be done?
OIDA: Optoelectronics Industry Development Association

3. What is Green Photonics?
Contribution of Photonics is considered “green” if it
Generates or conserves energy
Reduces greenhouse gas emissions
Reduces pollution
Yields a more environmentally sustainable outcome
Examples of Green Photonics
Photovoltaic (PV) power generation
High efficiency solid state lighting (SSL)
Displays with reduced power consumption
High efficiency optical data transceivers (lower mW/Gb/s)
Ultraviolet water (UV) purification
Phil Wright (wright@oida.org)
Green awareness is there

4. What difference will it make?
Renewable energy sources
Reductions in energy consumption
Reductions in carbon dioxide emissions
Reduced pollution
Improved human health
Phil Wright (wright@oida.org)
Big problems, Big impacts

5. What difference will it make?
Beneficial Impacts Optoelectronic Applications
Renewable Electricity Generation Photovoltaic generation, Optical sensing to
maximize wind turbine performance
Energy Conservation and Photovoltaic energy supplies displace fossil
Efficiency fuel consumption, Solid state lighting is more
efficient reducing energy consumption
Public Health UV disinfection of drinking water, waste
water, industrial water, food, air
Energy Extraction Optical sensing to optimize oil and gas
recovery
Pollution Reduction Mercury discharge reduction as solid state
lighting displaces mercury lamps and
fluorescent lighting for illumination,
disinfection and display backlighting
Environmental Monitoring Optical sensors for air and water monitoring
Reducing Greenhouse Gas Displace fossil fuels with renewable energy
Emissions sources incorporating optoelectronics
Source: OIDA
Phil Wright (wright@oida.org)
Big problems, Big impacts

6. Where is it going?
Green solutions will drive optoelectronics industry growth
Growth in investment
Government policies promoting green tech objectives
Optoelectronics industry is responding
Adopting green design goals
Green manufacturing practices resulting in further green outcomes
Markets are large, underpin world economy and sustainability
Investors creating a new bubble
Green Photonics revenues already large and growing rapidly
Phil Wright (wright@oida.org)
Big opportunities

7. Green Photonics Market Segments
Underlying
Technology Application Impact
Technology
xSi, pSi, aSi, CdTe, Renewable energy, reduced carbon
Photovoltaics Power generation
CIS, CIGS emissions, reduced pollution
Reduced energy consumption, reduced
Solid State Lighting LEDs, OLEDs Illumination, Displays
mercury pollution
Improved drinking water quality, reduced
Ultraviolet Disinfection UV LEDs Water purification
mercury pollution
VCSELs, PIN
High Efficiency Optical
IT data centers Reduced energy consumption
detectors, Si
Transceivers
electronics
Energy extraction, Gas Reduced energy consumption, Reduced
Fiber optics, Bragg
Optical Sensors sensing, environmental pollution, Reduced green house gas
gratings, Detectors
monitoring, emission
OLEDs, LEDs, MEMs, Information and
Low Power Displays Reduced energy consumption
Electrophoretics, LCDs Entertainment Display
Reduced energy consumption, reduced
Green Optoelectronic
Many Many water consumption, Reduced pollution,
Manufacturing
Reduced green house gas emission
Source: OIDA
Phil Wright (wright@oida.org)
Strong growth in all segments

8. World Energy Sources
Photovoltaics
have been a
very small
portion of world
energy supplies
Source: REN21 2006, BP2006 Statistical Review
Phil Wright (wright@oida.org)
Solar PV <0.1% of Global Energy 2006

9. Forecast Photovoltaic Capacity
Source: McKinsey
Phil Wright (wright@oida.org)
Photovoltaic capacity 160 GWp in 2020

10. Solid State Lighting
SSL is available, becoming acceptable in more applications, offers
potential for very large electricity savings
Specific US market applications - 2 % US Consumption, 25 coal-fired plants
Sources: US DOE, Cree
Phil Wright (wright@oida.org)
100% Conversion saves 212 TWh/yr

11. Solid State Lighting
SSL has the potential to reverse the upward trend in US
energy consumption for lighting
Source: US DOE
Phil Wright (wright@oida.org)
Lighting energy down 15-20% in 2020

12. Ultraviolet Disinfection/Purification
Applications
Water purification
– Municipal drinking water
– Municipal waste water
– Private potable water
– Industrial process water
– Industrial waste water
– Consumer drinking water
– Chemical destruction
– Organics destruction
Air purification
– Deactivation of airborne viruses, bacteria,
spores, fungi
– Deactivation of viruses, bacteria, spores,
fungi in HVAC equipment
Food preparation and purification
– Disinfection in packaged food manufacturing
– Elimination grease, oil and odors in cooking
hoods
Current UV disinfection units employ mercury
lamps - limited lifetime, mercury pollution
Sources: Hydro-Photon, Aqua Sun Intl, Atlantic Ultraviolet
Phil Wright (wright@oida.org)
Market opportunity for UV HB-LEDs

13. Data Transport and Processing
In 2006 servers and data centers consumed 1.5 percent
of US electricity (61 billion kWh)
May double by 2011
<2006
Source: US EPA
Phil Wright (wright@oida.org)
Action needed to rein in data center power

14. Optical Data Transport and Processing
Important roles for Green Photonics in reducing power consumption
in communications and computing
Short term – further deployment and upgrading of optical
communications links with lower mW/Gb/s, also leads to reduced
cooling requirements and improved cooling capability
Medium and Long term – new computing hardware architectures
employing optical interfaces between processing, logic, and memory
will lead to higher flops/W
Sources: Lightwire, IBM
Phil Wright (wright@oida.org)
Tighter integration leads to lower power

15. Optical Sensor Examples
Application Property Sensed Technology Impact
Maximizing wind turbine Fiber Bragg Grating More efficient and reliable wind
Strain
performance (FBG) power
Distributed fiber Rapid and accurate detection of
Pipeline leakage detection Temperature, Strain optic Brillouin and pipeline leakage minimizing
Raman analyzers environmental damage
Water pressure, Turbidity, Various optical
Improved water quality and
Ground water monitoring Chlorophyll, Blue Green sensor technologies
availability
Algae, Contaminants, etc.
Temperature, Strain, Fiber Bragg Grating
Intelligent oil well systems Improved oil and gas recovery
Pressure, Seismic activity,
Oil, gas and water flow
Optical absorption in
More efficient and reliable
fiber coupled
Electrical transformers Hot spot temperature
electrical transmission
semiconductor
material
Dissolved oxygen Phase fluorometry Monitoring dissolved oxygen in
Oxygen concentration
monitoring marine/freshwater ecosystems
Sources: OIDA, David Krohn
Phil Wright (wright@oida.org)
Many and diverse applications

16. Optical Sensors
Pipe Line Leakage Monitoring
Fiber Optic Sensors for Oil Extraction
LIDAR for Wind Turbine Control
Fiber Optic Sensors for Wind Turbine Control Sources: Smartec, Opsens, Catch the Wind, Insensys
Phil Wright (wright@oida.org)
Market is broad and growing

17. Energy Efficient Displays
US TVs consumed 46 billion kWh in
2004, ~4% residential electricity use
Forecast to grow to more than 70
billion kWh by 2009
TV power consumption scales with
screen size – projection lower power
than plasma
Sony XEL-1 OLED TV power
consumption matches trend
Laser projection TVs offer major
power savings
For 60”-65” class TV
– Plasma 524W, LCD 525W,
Laser projection 135W
Mature but rapidly disappearing
CRT TVs are relatively efficient
Source: NRDC
Phil Wright (wright@oida.org)
Projection and OLED TVs save power

18. Energy Efficient Displays
OLED and LCD displays have potential for power
savings Sony XEL-1 OLED TV
Sources: Sony, Chi Mei Opto
Phil Wright (wright@oida.org)
Room for improvements

19. Green Optoelectronics Manufacturing
One company’s commitment
Source: AU Optronics
Phil Wright (wright@oida.org)
Improving product design

20. Green Optoelectronics Manufacturing
Improvement in Product or
Element Impact
Process
Backlight efficiency, Pixel
Light Efficiency Improvement 50 % reduction in power consumption
transmittance
Low Hg lamp, Fewer backlight
Backlight 30-50 % reduction in Hg content
lamps
Glass, printed circuit board, liquid Eliminate arsenic from glass, Eliminate
Green component selection
crystal material, integrated circuits, halogens, Eliminate brominated fire
sealing materials, etc. retardant
Reduce water consumption per glass area
Water consumption Low water processing
by 70%
Reduce green house gas emissions per
Greenhouse gas Low emission processes
glass area by 70%
Save 21,000 trees, 48,000 tons water,
Shipping packaging material Redesign shipping packaging
3,000 MWhr electricity, 2,000 ton CO2
Maximize shipping container Save 6,300 ton CO2 , 13,000 MWhr
Shipping transportation
loading electricity
Recycle glass, Reuse solvents,
Waste production 80 % waste recovery rate
Reduce sludge, Reuse sludge
Source: AU Optronics
Phil Wright (wright@oida.org)
Improving processes across the board

21. Conclusions
Green Photonics market segments including
Photovoltaics, Solid State Lighting, Sensors are gaining
traction in the market and are making good progress
Other segments not as far along, e.g.
Data center power consumption
– problem is well documented, solutions are not
Display efficiency
Ultraviolet HB-LEDs
Green optoelectronic manufacturing
Are these opportunities for OIDA to actively coordinate
and promote industry efforts to advance optoelectronic
technology and market development?
Phil Wright (wright@oida.org)