SolarFromChina

Wuxi, China: Suntech Signs 7 Gigawatt Wafer Agreement

Suntech Power has signed a definitive thirteen-year silicon wafer supply agreement with a subsidiary of Shunda Holdings Co. Ltd. Under the terms of the supply agreement, Shunda will supply Suntech specified annual volumes of silicon wafers with a total volume of approximately 7GW from 2008 to 2020.

Suntech Power also acquired a minority stake in Shunda Holdings Co. Ltd, from Actis, a leading private equity investor in emerging markets, and Waichun Investment Fund, for a total consideration of $98.9 million.

Dr. Zhengrong Shi, Suntech’s Chairman and CEO, said: “This strategic investment and long term supply agreement will be instrumental in the profitable and rapid growth of both Suntech and Shunda. This is another example of how we can leverage funds raised through our recent convertible notes offering to pursue strategic investments and high volume contracts that strengthen the long term cost structure of our business model. We believe that these transactions accelerate Suntech’s path to grid parity and significantly enhance Suntech’s long term cost competitiveness through better pricing and volume allocations. The multi-year commitment to purchase silicon similarly provides Shunda with the security and visibility to focus on expanding a world-class polysilicon plant.”

Shunda produces silicon ingots and wafers and currently supplies a number of major producers of PV crystalline cells and modules. Shunda is in the final stages of building a polysilicon plant in Yangzhou, Jiangsu province, China with a first phase capacity of 1,500 metric tons. Shunda intends to initiate production of solar grade polysilicon in the third quarter of 2008.

The polysilicon plant will utilize the advanced Siemens production process, with a closed-loop recycling system, and employ equipment and engineering services from industry leading vendors including GT Solar Incorporated.

Dr. Shi remarked, “Located in our home province of Jiangsu, Shunda’s proximity to Suntech will enhance the synergies that we can achieve by integrating polysilicon refinement right through to the manufacture of premium quality solar modules. Shunda’s clear commitment to maintaining the highest environmental standards in the production of polysilicon was another key factor considered in the lead up to this partnership. We look forward to building a close and mutually supportive relationship with Shunda.”

Mr. Yunda Ni, Shunda’s CEO said, “We are delighted to enter this partnership with Suntech, a world leader in the solar industry. This long term contract will provide a stable foundation for Shunda to expand our polysilicon and wafer production facilities and help establish Shunda as a premier manufacturer of both polysilicon and silicon wafers. Our polysilicon plant is designed to employ proven technology and production techniques in order to achieve the highest standards of clean manufacturing. We look forward to making a growing contribution to the development of the solar industry.”

Commenting on Suntech’s improved silicon outlook, Dr. Shi continued, “The relatively small quantities of silicon wafers to be supplied in 2008 from Shunda will replace some of our higher-priced spot market silicon and will make an important contribution towards the completion of our 2008 production target of 530MW. With this long-term agreement, we are able to increase our silicon secured for 2009 by 50MW to 800MW of silicon with an average cost more than 20% below our average cost of silicon in 2007.”

China's Renewable Energy Development Project (REDP) was rewarded the Ashden Awards for Sustainable Energy, the world's leading green energy prize, in a final competition taking place here Thursday.

The REDP was launched in 2001 by the National Development and Reform Commission (NDRC) and the World Bank (WB), with international grant financing provided by the Global Environment Facility (GEF), with one of its main aims to promote the installation of photovoltaic (PV) solar home systems in remote off-grid homes in nine western Chinese provinces; to improve the quality of production of PV modules and other system components in China; to provide free information about PV; and to facilitate cooperation between the PV sector in China and the rest of the world.

The REDP has enabled sales of over 402,000 photovoltaic (PV) solar-home systems (SHS) through the REDP-subsidized program since its establishment to rural people who live off the land by tendingyaks or other animals in remote areas of the West and North-West of China.

Around 1.6 million people, who live in tents for at least part of the year and had little access to electricity previously, now have an improved quality of life through better light, communications and entertainment, with the portable systems ideally suited to the lifestyle of these semi-nomadic users who are able to take them with their tents into the summer pasture in the hills.

A typical SHS supplies two lights, a radio and a mobile phone charger, and is supplied in a metal carry-case so that it is portable. Larger systems can power radio-cassettes, TVs and DVD players. For users, the main benefit of the REDP program was brighter, cleaner lighting, for study, work and recreation. Use of radio-cassettes and mobile phones to keep in touch with the outside world is also greatly appreciated.

The REDP program supported the rapid growth of the PV industry in China, and improved the quality of production while keeping costs low. It greatly expanded the market for solar home systems, and supported the development of a network of suppliers, wholesalers and retailers.

The REDP has also supported some PV village systems to provide electricity for public facilities such as, schools, health centers, village satellite telephones, forest protection, road maintaining, climate monitoring and Buddhist temples.

The REDP was one of the six pioneering renewable energy projects from Africa, Asia and Latin America that received a prizeof 20,000 pounds (some 40,000 US dollars) each announced by the Asheden Awards at a ceremony here.

At the ceremony, India's Technology Informatics Design Endeavour (TIDE) was announced to win this year's title "Energy Champion" and a prize of 40,000 pounds (some 80,000 U.S. dollars) while Bangladeshi Grameen Shakti won the 2008 Outstanding Achievement Award and a prize of 15,000 pounds.

The Ashden Awards for Sustainable Energy was founded in 2001 by the Ashden Trust, a Britain-based charity, and the competition is held annually to identify and reward outstanding and innovative projects in Britain and developing countries which provide renewable energy and energy efficiency at a local level.

 

Not In China yet, It's U.S.

Despite the slow economy, venture-capital funding of clean-tech start-ups in the USA and abroad is on pace for a record year, according to a report released Tuesday.
In the second quarter, venture funding for nearly 100 biofuel, solar, wind and clean-water start-ups hit a quarterly record of nearly $2 billion — a 58% jump from the same time last year, says the Cleantech Group, a market research firm in San Francisco.

The rise in clean-tech funding comes despite a limping U.S. economy and weak markets for initial public offerings, mergers and acquisitions — the traditional "exit strategies" for entrepreneurs and venture capitalists hoping to sell their stock publicly or sell to a larger company.

"Interest in clean tech continues to show robust growth, despite the impact of economic headwinds and credit market restraints," says John Balbach, managing partner at Cleantech.

Venture firms, start-ups and corporations are pouring more dollars into clean technologies because of higher energy and commodities prices, tightening supplies of oil, tougher regulations on carbon emissions and other economic factors, says Brian Fan, Cleantech's senior director of research.

At the same time, venture capitalists are shifting more of their assets from the traditional sectors of software, medical devices and biotechnology into the clean-tech arena in the USA, Europe, Israel, China and India.

"Investors and entrepreneurs are making two big bets," Fan says. "How do we replace coal as the primary fuel for electricity generation, and how do we replace oil as the primary fuel for transportation?"

Much of the funding is going to young companies working on:

•Solar thermal technology. Start-ups such as eSolar, SkyFuel and BrightSource Energy are building large-scale, solar thermal technology that creates steam to run turbines.

•Second-generation biofuels. Range Fuels, Aurora BioFuels, Greenline Industries and other start-ups are using algae, cellulosic ethanol and materials other than food crops.

Clean-tech investments and technologies are getting more attention mainly from companies in the auto, transport, shipping and petrochemical industries, which are paying higher prices for raw materials, Fan says.

Clean-tech start-ups still have a long way to go, though. Fan estimates it will take five to 15 years before clean-tech products and services are embraced by mainstream corporations and have a large impact on the economy and the environment.

"We're still in the very early stages of the game," Fan says. "But once growth companies prove their technologies, fine-tune their business models and build sales channels to customers, we'll start seeing a steady progression of acquisitions by large companies."

 

Wind power plants are attracting increasing investment in China, according to statistics from the United Nations Environment Programme(UNEP).

The newly released UNEP report, Global Trends in Substantial Energy Investment 2008, shows that China's sustainable energy investment increased by 91 percent in 2007 to a record high 10.8 billion U.S. dollars, most of which has flowed to wind power generating units.

The heavy investment enabled China's wind capacity to double to6 GW last year.

Meanwhile, new investment in sustainable energy surpassed 148.4billion U.S. dollars on a global scale, up 60 percent year on year. Funds in the wind power sector became the biggest contributor to the surge.

"At present, wind and solar power have already stood as the hottest spots for renewable energy investment. Alternatives like hydropower and nuclear energy are also coming into the field," said Zhang Shigang, representative of UNEP China office.

Beijing has taken quick action to catch up with the new global trend in clean energy development. Guanting wind power plant, in suburban Beijing, began full operation here on Saturday, supplying wind generated electricity into China's capital for the first time.

With the last 10 wind power generating units officially certificated by Beijing Electric Power Company, the plant has now installed 43 domestically developed wind power units, with a capacity of 64.5 thousand kW.

The plant is expected to supply 100 million-kWh electricity per year, or 300,000 kWh per day, to meet the daily demand of 100,000 households.

Officials with Guanting called the wind power plant a key project for the success of Green Olympics. Statistics from Guanting shows that the power plant could help cut yearly emission of carbon dioxide by 100 thousand tonnes and save 50 thousand tonnes of coal each year.