Xantrex Technology: Facilitating the Green Power Wave
Written & produced by James Buchanan & Jason Wright
There is a critical niche for providing the necessary components for
solar and wind power, and Xantrex Technology Inc. is working to fill it
If predictions are correct, global warming will result in rising sea levels and more intense and dangerous weather around the world.
Since reducing the use of fossil fuel is the prescribed treatment, global warming also means significant growth in the alternative energies industry.
Within this industry the predominant forms of generating electricity are solar and wind, with a number of other alternatives in development. For each, the source of generation may be different, but the end result is the same in that each produces electricity in a somewhat raw form.
After the electricity is generated it must be converted from one form to another, in order for it to be then placed into the electric grid, or prior to being used as a power source. It is at this point that the products manufactured and sold by Xantrex Technology Inc., come into play.
“In the renewable business, in solar, the solar module makes DC power,” says Nazir Mulji, VP of business development for Xantrex, “but there is very limited use for DC power on its own. You could maybe power some lights, or LEDs, or some small DC loads. Most of the market today for solar is to generate electricity, so our products take that DC power, convert it to AC power, clean it up and allow it to be fed into the electricity grid and make your electricity meter run backwards.”
In a more general sense, says Mulji, Xantrex is an advanced power electronics company that combines proven technology with strong market understanding to facilitate the conversion and control of electricity. Whether the electricity is generated by an alternative source such as a wind turbine or solar cell, or from a more conventional means, Xantrex’s products inhabit the space between the generator or strategic source and its ultimate load.
“In a wind turbine there is a wind generator. In a backup operation it could be a diesel generator,” says Mulji. “It doesn’t matter; we are quite agnostic as to how power is produced. What we like to do is take that and convert it to a form that is usable, either in a home, or a lab, or fed back into the electric grid.”
As one example of the type and scope of work the company does, Xantrex partnered with Powerlight Solar Electric Systems to produce one of the largest rooftop installations in the U.S. The installation was for Toyota Motor Sales new headquarters and covers five building rooftops and supplies 20 percent of the buildings power, which is enough electricity for 500 homes.
Xantrex is also capable of handling the power needs of smaller products. In March, 2007, the company announced it is partnering with Duracell to provide a new line of Duracell-branded portable power products such as inverters, power packs and battery chargers for electronic devices such as laptop computers, PDAs, and cell phones.
According to Mulji, the broad scope of the company’s capabilities is its focus on four specific market areas, which are renewable power, programmable power, mobile power, and portable power.
“Market understanding is what makes the biggest difference for us,” says Mulji. “We are able to apply our products appropriately in the markets we serve. We do that by knowing just exactly how the customer is going to use it.”
In order to gain that understanding the company places a priority on meeting with customers and on focus groups. “Whatever it takes to absolutely understand how customers use a product and deploy the product,” Muljie says.
“The strengths of the company are that the customer base we serve is Blue Chip. We have a strong product portfolio, and the ability to bring new products to market profitably and we are focused in these four growth markets. This is what sets us apart,” Mulji continues.
On the latter point, Mulji says the success of the company’s new products depends on understanding its customer’s needs and how the company will manufacture the product.
“You must also design it precisely right from the start,” says Mulji. “We employ a number of different methodologies, ranging from doing research right up front, to new topologies, design for manufacturing, to highly accelerated life testing to make sure the product is robust, coupled with customer input this really makes a big difference.”
For products that are continuously in use, life testing is a key aspect to Xantrex’s cycle of continuous improvement. Begun in 2003, the program is titled Highly Accelerated Life Test (HALT) and is used to detect and address product design issues early in the development cycle. Xantrex reliability engineers use state-of-the-art chambers under extreme thermal and mechanical conditions to deliberately stress products and expose flaws during the design stage.
As the company serves a number of different needs, it also produces a variety of products to the specifications of the company’s customers.
“This is not just done in our lab,” says Mulji, “it could also be done at the customer site. It is a very involved process that could take months or even years in the case of a wind turbine. You are basically coupled with the customer throughout.”
He adds, “We will work with them to develop the specification and then come up with a project schedule and have touch points throughout to make sure we are doing the right thing. It’s just classic engineering.”
On the manufacturing side, Mulji says the company employs a number of different quality and efficiency control processes such as lean manufacturing and just-in-time inventory.
“It depends on the market. With four businesses each one has a different requirement,” he says. “We do about half of our production in-house and we outsource the balance, so there are different techniques required for each one.”
As to the technologies used by the company, Mulji says there are a number of methodologies used that equate to classic electronics manufacturing. These include surface mount, through hole, or some form of mixed mode between the two.
As to growth, Mulji says that Xantrex will “Continue to grow organically and through acquisitions, and we will continue with that strategy. It’s by expanding sales and distribution for our products and adding new products. Product development is a growth engine for the company and we rely on that to grow the business.”
The turn around on new product development, he says, can be as short as 13 weeks for portable products or as long as two years for a wind converter.
“You are talking about a wind turbine that sells for more than a million dollars,” says Mulji, “and then there is the converter that sits inside the tower and takes that energy — a variable frequency AC or high voltage DC that has to go through the power electronics system to convert it and feed it into the grid — and you are talking about very high power levels with strict requirements by the utilities on the quality of the power before allowing you to pump that power back into the grid.”
As to new acquisitions, Mulji is somewhat circumspect on the subject, but he does say the company is always looking on a global basis, “Because this is one of the quick ways of building market for us.”
Finally, Mulji says Xantrex has a strong portfolio and line of products they have and will bring to market. “The markets that we are in are large and they are growing fast,” he says. “We have built a good profitable base business with significant growth opportunity.”