Financial advisory firm Pegasus Corporate Advisory projected revenue growth for Dyesol from $1.7 million to $5.9 million next financial year and then to $22.9 million in the 2010 financial year, an increase of 69% over two years.

Dyesol has patented "dye solar cell (DSC) technology" which mimics photosynthesis, where the green dye chlorophyll in a leaf absorbs the energy from light and generates electrons, which are captured in the leaf structure.

DSC uses a layer of ruthenium dye and titania, the white pigment used in paint and toothpaste, sandwiched between glass. Light that hits the dye excites electrons which are absorbed by the titania to create an electric current.

According to Pegasus, demand for Dyesol services is being driven by customers such as The Corus Group, the world's fifth largest steel manufacturer.

Corus signed an agreement with Dyesol in December last year to develop the DSC technology to coat steel roofing products.

Corus produces 100 million square metres of roof and wall cladding products per annum, and hopes to convert a significant proportion of its steel roofing products to DSC over time. Pegasus expects Corus could generate over $3 million in income for Dyesol in 2010/11.

The Australian Defence Science Technology Organisation is another strategic partner for Dyesol. While the details of the project are not disclosed, Dyesol has been commissioned to develop a DSC manufactured product over two years for $2 million.

Part of the reasons for Dyesol's projected growth is because it sells its product to the rapidly growing renewable energy sector. Global investment in renewable energy grew 43% in 2006 to $70.9 billion, of which 16% was invested into the solar energy industry.

Much of this is driven by government intervention. Increasingly, governments are establishing legislation to further accelerate development of the renewable energy sector.

The major consumer countries are Germany and Japan with rapid growth becoming evident in the US and the rest of Europe.