(Updates with details EverQ expansion plans, IPO)
OSLO (Thomson Financial) - Renewable Energy Corporation ASA said it has been
awarded a 5.3 bln nkr wafer sales contract from Belgian silicon cell producer
Photovoltech.
Under the terms of the agreement, REC said it will supply Photovoltech with
multi-crystalline silicon wafers until 2015.
The deal is structured as a take-and-pay contract with pre-determined prices
and volumes for the entire contract period, REC said.
"This agreement secures future revenues and earnings at attractive prices
and still leaves sufficient wafer volumes for internal expansions in REC's cells
and module business," said REC's chief executive Erik Thorsen.
The supply contract replaces and extends REC's existing supply relationship
with Photovoltech, it said, adding that deliveries of wafers under the new
agreement will commence in 2009, and increase over time to a level of about 100
MWp (megawatt peak) per year.
"Prices and commercial terms are in line with contracts signed in the second
half of 2006 and earlier this year," REC said.
In a separate statement, REC said it has chosen Singapore as the location
for its new 3 bln eur solar manufacturing complex.
The new complex will incorporate wafer, cell and module production
facilities, and REC says it will hold a total production capacity of up to 1.5
GW.
Following its decision, REC said it has agreed a "comprehensive support
package" with the Economic Development Board of the Singapore government.
This, it said, includes incentives and grants in the areas of tax, R&D and
process improvement, as well as human resources, recruitment and training.
Depending on the final capacity and site development, REC said total
investments in the site "may exceed 3 bln eur within the next 5 years".
Elsewhere, REC said it has agreed with partners Evergreen and Q-Cells to
fund a 144 mln eur investment in a new plant for their equally-owned subsidiary
EverQ.
The investment, REC said, will increase the capacity of EverQ from 100 MW to
180 MW while it continues its preparations for an eventual flotation, also
announced today.
alastair.reed@thomson.com
ar/ra/ar/slj/ar/ra
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