BAODING, CHINA: Yingli Green Energy Holding Co. Ltd, a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which markets its products under the brand "Yingli Solar", announced that it has entered into supply agreements with Huanghe Hydropower Development Co. Ltd, a subsidiary of China Power Investment Corp., for the supply of a total of 110 MW PV modules.
The modules are expected to be utilized for two ground-mounted solar projects constructed by Huanghe Hydropower. The company is the largest supplier for these two projects. Under the terms of the agreement, the company will supply 30 MW PV modules for a solar project located in Wulan, Qinghai province, and 80 MW PV modules for a solar project located in Golmud, Qinghai province. These modules are expected to be delivered from June through August of this year.
Liansheng Miao, chairman and CEO of Yingli Green Energy, commented: "We are pleased to establish a business relationship with Huanghe Hydropower and supply our PV modules for the development of these PV power projects, which currently are the largest in China. This new business relationship represents our continued commitment to the China solar PV market, which has experienced rapid growth over the recent two years. These two projects will provide tens of thousands of people in Qinghai province with clean and safe power, as well as create green jobs and promote sustainable economic development of Qinghai province."
Monday, July 4, 2011
Saturday, July 2, 2011
JA Solar to acquire wafer producer Solar Silicon Valley
SHANGHAI, CHINA: JA Solar Holdings Co. Ltd, one of the world's largest manufacturers of high-performance solar cells and solar power products, has entered into a definitive agreement to acquire 100 percent ownership interest in Silver Age Holdings Ltd, a British Virgin Islands company that owns 100 percent of Solar Silicon Valley Electronic Science and Technology Co. Ltd, a leading producer of solar wafers based in China, in a transaction that values Solar Silicon Valley at approximately $180 million.
At the time of closing JA Solar will issue 30.901 million ordinary shares as consideration at a price of $5.825 per share, representing the 45-day volume-weighted average price of JA Solar's ADSs trading on the NASDAQ Global Market and approximately a 5 percent premium to the last closing price of the ADSs prior to this announcement. Each ADS of JA Solar represents one ordinary share. The consideration for the acquisition represents approximately 2.6 times the audited net income of Solar Silicon Valley for 2010.
Located in the Yanjiao Economic & Technology Development Zone in Langfang City, Hebei Province, Solar Silicon Valley operates a wafer production facility with an annual production capacity of 485MW. Solar Silicon Valley also produces quartz crucibles, a key consumable material used in the solar manufacturing industry. Silver Age Holdings is 70 percent owned by Jinglong Group, a company controlled by JA Solar's chairman, Baofang Jin, and 30 percent owned by an independent third party shareholder.
"This agreement represents another important step in JA Solar's strategy of optimizing our cost structure through selective vertical integration," Dr. Fang Peng, CEO of JA Solar, commented.
"In today's solar market, it is essential for producers to improve costs while maintaining a relentless focus on technology and product quality. By boosting JA Solar's internal wafer capacity through this acquisition, we expect to achieve greater economies of scale and improve the company's profitability. Furthermore, Solar Silicon Valley has key technologies which can be leveraged to provide superior quality wafer substrates for our high-efficiency solar cell products. As a low cost leader in the solar industry, we expect that this transaction will enhance JA Solar's leadership position and enable us to meet strong global demand for our high-quality, high-efficiency solar products."
Upon completion of the transaction, JA Solar's internal wafer capacity will be increased to approximately 785MW, ensuring a stable supply of low-cost wafers. As wafer costs constitute a significant part of JA Solar's total cost of manufacturing solar cells, enhanced internal wafer capacity will allow JA Solar to improve gross margins and benefit from vertical integration. JA Solar and Solar Silicon Valley are also expected to benefit from synergies arising from economies of scale, raw material sourcing efficiencies as well as operational optimization.
At the time of closing JA Solar will issue 30.901 million ordinary shares as consideration at a price of $5.825 per share, representing the 45-day volume-weighted average price of JA Solar's ADSs trading on the NASDAQ Global Market and approximately a 5 percent premium to the last closing price of the ADSs prior to this announcement. Each ADS of JA Solar represents one ordinary share. The consideration for the acquisition represents approximately 2.6 times the audited net income of Solar Silicon Valley for 2010.
Located in the Yanjiao Economic & Technology Development Zone in Langfang City, Hebei Province, Solar Silicon Valley operates a wafer production facility with an annual production capacity of 485MW. Solar Silicon Valley also produces quartz crucibles, a key consumable material used in the solar manufacturing industry. Silver Age Holdings is 70 percent owned by Jinglong Group, a company controlled by JA Solar's chairman, Baofang Jin, and 30 percent owned by an independent third party shareholder.
"This agreement represents another important step in JA Solar's strategy of optimizing our cost structure through selective vertical integration," Dr. Fang Peng, CEO of JA Solar, commented.
"In today's solar market, it is essential for producers to improve costs while maintaining a relentless focus on technology and product quality. By boosting JA Solar's internal wafer capacity through this acquisition, we expect to achieve greater economies of scale and improve the company's profitability. Furthermore, Solar Silicon Valley has key technologies which can be leveraged to provide superior quality wafer substrates for our high-efficiency solar cell products. As a low cost leader in the solar industry, we expect that this transaction will enhance JA Solar's leadership position and enable us to meet strong global demand for our high-quality, high-efficiency solar products."
Upon completion of the transaction, JA Solar's internal wafer capacity will be increased to approximately 785MW, ensuring a stable supply of low-cost wafers. As wafer costs constitute a significant part of JA Solar's total cost of manufacturing solar cells, enhanced internal wafer capacity will allow JA Solar to improve gross margins and benefit from vertical integration. JA Solar and Solar Silicon Valley are also expected to benefit from synergies arising from economies of scale, raw material sourcing efficiencies as well as operational optimization.
PowerFilm gives live demo of roll to roll flexible electronics technology
AMES, IOWA: PowerFilm Inc., the developer and manufacturer of thin flexible solar panels and flexible electronics, gave a live demonstration of its roll to roll flexible electronics technology for government officials earlier this week. The officials attending included US Congressman Tom Latham, Iowa Lt. Governor Kim Reynolds, Iowa Economic Development Director Debi Durham, and Kevin Condon from the office of Senator Tom Harkin.
The flexible display demonstration featured the world's first and only backplane array technology for a flexible display made using a full roll to roll process integrated with a front plane driver to create the full working display. A backplane driver is an array of transistors that turns individual pixels on a display on and off, according to instructions from a computer.
The advantages of this technology, compared to current display technology and other technologies in development (none of which are true roll to roll processed), are that the backplane driver itself is thin, lightweight, durable (plastic not glass), conformable, and is made using a low cost manufacturing process at scale, thereby enabling products with those advantages.
PowerFilm's core roll to roll manufacturing expertise for semiconductors, developed for its PV products, has been expanded to develop flexible electronics. The technology has been developed by PowerFilm's majority owned subsidiary Phicot, in collaboration with Hewlett-Packard (HP) and the Army Research Laboratory (ARL).
PowerFilm has licensed in HP's self aligning imprint lithography (SAIL) technology.
As previously announced, PowerFilm has received approximately $5.5 million funding from ARL to develop a self powered flexible display for soldiers using a combination of PowerFilm's flexible display technology and its thin film solar material to allow it to be self-powered.
Additional potential applications include items such as a ruggedized deployable briefing board for the military and other display screens, ebooks, and other consumer electronics devices, and billboards.
The technology has been developed in the USA, where the working prototypes also have been made. PowerFilm has been active in the area of roll to roll flexible electronics for a decade, with the past 5 years focused on the development of flexible display technology.
The company is active in the flexible electronics industry and in 2010 PowerFilm and HP were awarded the FlexTech Alliance's R&D Achievement Award.
The next steps are continued yield improvement, along with funding and site selection for the pilot manufacturing facility.
The flexible display demonstration featured the world's first and only backplane array technology for a flexible display made using a full roll to roll process integrated with a front plane driver to create the full working display. A backplane driver is an array of transistors that turns individual pixels on a display on and off, according to instructions from a computer.
The advantages of this technology, compared to current display technology and other technologies in development (none of which are true roll to roll processed), are that the backplane driver itself is thin, lightweight, durable (plastic not glass), conformable, and is made using a low cost manufacturing process at scale, thereby enabling products with those advantages.
PowerFilm's core roll to roll manufacturing expertise for semiconductors, developed for its PV products, has been expanded to develop flexible electronics. The technology has been developed by PowerFilm's majority owned subsidiary Phicot, in collaboration with Hewlett-Packard (HP) and the Army Research Laboratory (ARL).
PowerFilm has licensed in HP's self aligning imprint lithography (SAIL) technology.
As previously announced, PowerFilm has received approximately $5.5 million funding from ARL to develop a self powered flexible display for soldiers using a combination of PowerFilm's flexible display technology and its thin film solar material to allow it to be self-powered.
Additional potential applications include items such as a ruggedized deployable briefing board for the military and other display screens, ebooks, and other consumer electronics devices, and billboards.
The technology has been developed in the USA, where the working prototypes also have been made. PowerFilm has been active in the area of roll to roll flexible electronics for a decade, with the past 5 years focused on the development of flexible display technology.
The company is active in the flexible electronics industry and in 2010 PowerFilm and HP were awarded the FlexTech Alliance's R&D Achievement Award.
The next steps are continued yield improvement, along with funding and site selection for the pilot manufacturing facility.
Friday, July 1, 2011
Q-Lab wins award to improve solar PV module durability
WESTLAKE, USA: Q-Lab Corp. and several partners were recently awarded $2.9 million for a Solar-Durability and Lifetime Extension (S-DLE) Center project, as part of the Ohio Third Frontier program. Q-Lab is a recognized global leader in advanced weathering test equipment and services. The other program collaborators are Case Western Reserve University (program lead), DuPont Photovoltaic Solutions, Xunlight26 Solar, eQED, and Underwriters Laboratories, Inc.
The award will provide Ohio companies with the resources necessary to evaluate and reduce degradation in their products caused by solar radiation and environmental factors. The research is aimed at both raw materials and complete modules utilized in solar photovoltaic (PV) panels. The technology will allow the companies to provide longer service lifetimes, improved product warranties, and lower cost of ownership to end-users.
For the project, Q-Lab will provide a suite of its advanced QUV fluorescent UV weathering testers, Q-SUN xenon-arc light stability chambers, and Q-FOG cyclic corrosion testers. Q-Lab will also provide outdoor exposure testing at its industry-leading Florida and Arizona Weathering Research Service facilities. Q-Lab's testers and test services meet a wide range of ISO, ASTM, AATCC, SAE, DIN and other standards worldwide.
Doug Grossman, president of Q-Lab, commented: "Our team at Q-Lab is elated at winning this important award. Determining the long term durability of PV modules presents one of the biggest challenges in my 37 years of accelerated weathering tester design. The rapid pace of PV development means that customers don't have real time durability data on new materials that are expected to last 25 years. Accelerated weathering testing directly addresses this issue. This award will help us give our customers confidence that their modules will last outdoors for many years to come."
The award will provide Ohio companies with the resources necessary to evaluate and reduce degradation in their products caused by solar radiation and environmental factors. The research is aimed at both raw materials and complete modules utilized in solar photovoltaic (PV) panels. The technology will allow the companies to provide longer service lifetimes, improved product warranties, and lower cost of ownership to end-users.
For the project, Q-Lab will provide a suite of its advanced QUV fluorescent UV weathering testers, Q-SUN xenon-arc light stability chambers, and Q-FOG cyclic corrosion testers. Q-Lab will also provide outdoor exposure testing at its industry-leading Florida and Arizona Weathering Research Service facilities. Q-Lab's testers and test services meet a wide range of ISO, ASTM, AATCC, SAE, DIN and other standards worldwide.
Doug Grossman, president of Q-Lab, commented: "Our team at Q-Lab is elated at winning this important award. Determining the long term durability of PV modules presents one of the biggest challenges in my 37 years of accelerated weathering tester design. The rapid pace of PV development means that customers don't have real time durability data on new materials that are expected to last 25 years. Accelerated weathering testing directly addresses this issue. This award will help us give our customers confidence that their modules will last outdoors for many years to come."
MEMC announces termination of Suntech wafer supply agreement
ST. PETERS, USA: MEMC Electronic Materials Inc. announced that its affiliate, MEMC Singapore Pte Ltd, and Suntech Power Holdings Co. Ltd have agreed to terminate their long-term solar wafer supply agreement.
Under the terms of the supply agreement, which was originally signed in July 2006, MEMC was to supply solar wafers to Suntech over a 10-year period, with pre-determined pricing, on a take or pay basis beginning in January 2007. As part of the original supply agreement, Suntech advanced funds to MEMC in the form of a loan/security deposit and MEMC received a warrant to purchase up to a 4.99 percent equity stake in Suntech.
Since the market downturn in early 2009, issues with respect to Suntech's price and volume purchase obligations under the supply agreement have created challenges to finding a mutually beneficial arrangement between the parties. After two formal contract amendments (in February 2009 and July 2009), in order to resolve these ongoing challenges, the companies have now agreed to terminate the supply agreement.
In exchange for MEMC's agreement to terminate the supply agreement, Suntech has agreed to pay MEMC $120 million, through the retention by MEMC of $53 million of cash deposited previously by Suntech under the supply agreement and currently held by MEMC, and a $67 million irrevocable letter of credit established by Suntech for the benefit of MEMC, to be drawn upon in four equal installments on July 8, 2011, October 1, 2011, January 1, 2012 and April 1, 2012. The letter of credit has no drawing conditions other than the passage of time. MEMC has retained the Suntech warrant originally issued to MEMC in July 2006.
"We are pleased to have reached a mutually agreeable conclusion to our 2006 solar wafer supply contract with Suntech," commented Ken Hannah, president of MEMC Solar Materials. "In early 2009 we began to diversify our solar wafer customer base, such that wafer sales to Suntech have gone from over 50 percent of our Solar Materials business in 2009 to just over 2 percent in Q1 2011 and 0 percent in Q2 2011. By putting this behind us, we look forward to establishing a new and beneficial commercial relationship with Suntech. MEMC's overarching strategy in solar, which includes wafer production, a diversified wafer customer base and a strong downstream pipeline through SunEdison, remains unchanged."
MEMC is assessing the financial impact on its second quarter and full year 2011 earnings of the Suntech termination, related contract termination charges, and other restructuring actions being implemented by company management in response to the market downturn.
Under the terms of the supply agreement, which was originally signed in July 2006, MEMC was to supply solar wafers to Suntech over a 10-year period, with pre-determined pricing, on a take or pay basis beginning in January 2007. As part of the original supply agreement, Suntech advanced funds to MEMC in the form of a loan/security deposit and MEMC received a warrant to purchase up to a 4.99 percent equity stake in Suntech.
Since the market downturn in early 2009, issues with respect to Suntech's price and volume purchase obligations under the supply agreement have created challenges to finding a mutually beneficial arrangement between the parties. After two formal contract amendments (in February 2009 and July 2009), in order to resolve these ongoing challenges, the companies have now agreed to terminate the supply agreement.
In exchange for MEMC's agreement to terminate the supply agreement, Suntech has agreed to pay MEMC $120 million, through the retention by MEMC of $53 million of cash deposited previously by Suntech under the supply agreement and currently held by MEMC, and a $67 million irrevocable letter of credit established by Suntech for the benefit of MEMC, to be drawn upon in four equal installments on July 8, 2011, October 1, 2011, January 1, 2012 and April 1, 2012. The letter of credit has no drawing conditions other than the passage of time. MEMC has retained the Suntech warrant originally issued to MEMC in July 2006.
"We are pleased to have reached a mutually agreeable conclusion to our 2006 solar wafer supply contract with Suntech," commented Ken Hannah, president of MEMC Solar Materials. "In early 2009 we began to diversify our solar wafer customer base, such that wafer sales to Suntech have gone from over 50 percent of our Solar Materials business in 2009 to just over 2 percent in Q1 2011 and 0 percent in Q2 2011. By putting this behind us, we look forward to establishing a new and beneficial commercial relationship with Suntech. MEMC's overarching strategy in solar, which includes wafer production, a diversified wafer customer base and a strong downstream pipeline through SunEdison, remains unchanged."
MEMC is assessing the financial impact on its second quarter and full year 2011 earnings of the Suntech termination, related contract termination charges, and other restructuring actions being implemented by company management in response to the market downturn.
Suntech and MEMC terminate long term silicon wafer supply agreement
SAN FRANCISCO, USA & WUXI, CHINA: Suntech Power Holdings Co. Ltd, the world's largest producer of crystalline silicon solar panels, announced that due to rapid changes in the market for silicon wafers, Suntech and MEMC have agreed to mutually terminate a solar wafer supply agreement originally entered into in 2006 with a term through 2016. Suntech also announced that it will incur a one-time expense related to the discontinuation of CSG Solar's research and development operations.
In connection with the termination, Suntech will relinquish $53 million in prepayments previously made to MEMC, and pay an additional $67 million in four equal installments to be made between July 2011 and April 2012. In addition, Suntech will take a non-cash accounting charge of approximately $92 million resulting from the write-off of unamortized cost associated with warrants previously issued concurrently with the supply agreement in 2006.
In total, Suntech expects to incur $212 million of expenses related to the terminated supply agreement in the second quarter of 2011, of which $67 million will be additional cash outlay. As a result of the termination, Suntech is no longer required to purchase approximately 4.6GW of wafers between 2011 and 2016. This will allow Suntech to optimize its silicon sourcing strategy, including maximizing internal wafer production, and lead to estimated cost savings of over $400 million in the next five years.
Separately, Suntech will discontinue its investment in CSG Solar AG, a subsidiary of Suntech dedicated to the research and development of specialized crystalline silicon thin film technology, and incur a one-time, non-cash charge of approximately $24 million in the second quarter of 2011.
Dr. Zhengrong Shi, Suntech's chairman and CEO, said: "The termination of this agreement with MEMC will bring greater flexibility to our sourcing strategy and help us benefit from the continuing drop in silicon and wafer prices. While we have brought closure to this legacy agreement, we look forward to continuing collaboration with MEMC in areas including mutually beneficial supply relationships that support the growth of both companies. The closure of CSG will allow us to better focus on what we do best – supplying high performance and reliable crystalline silicon solar panels to global markets.
"While these charges are significant, they are all non-recurring and our core operations continue to perform well. We are seeing growing opportunities for utility-scale solar projects throughout the world and we are on track to meet our shipment guidance of low single digit sequential growth in the second quarter of 2011."
In connection with the termination, Suntech will relinquish $53 million in prepayments previously made to MEMC, and pay an additional $67 million in four equal installments to be made between July 2011 and April 2012. In addition, Suntech will take a non-cash accounting charge of approximately $92 million resulting from the write-off of unamortized cost associated with warrants previously issued concurrently with the supply agreement in 2006.
In total, Suntech expects to incur $212 million of expenses related to the terminated supply agreement in the second quarter of 2011, of which $67 million will be additional cash outlay. As a result of the termination, Suntech is no longer required to purchase approximately 4.6GW of wafers between 2011 and 2016. This will allow Suntech to optimize its silicon sourcing strategy, including maximizing internal wafer production, and lead to estimated cost savings of over $400 million in the next five years.
Separately, Suntech will discontinue its investment in CSG Solar AG, a subsidiary of Suntech dedicated to the research and development of specialized crystalline silicon thin film technology, and incur a one-time, non-cash charge of approximately $24 million in the second quarter of 2011.
Dr. Zhengrong Shi, Suntech's chairman and CEO, said: "The termination of this agreement with MEMC will bring greater flexibility to our sourcing strategy and help us benefit from the continuing drop in silicon and wafer prices. While we have brought closure to this legacy agreement, we look forward to continuing collaboration with MEMC in areas including mutually beneficial supply relationships that support the growth of both companies. The closure of CSG will allow us to better focus on what we do best – supplying high performance and reliable crystalline silicon solar panels to global markets.
"While these charges are significant, they are all non-recurring and our core operations continue to perform well. We are seeing growing opportunities for utility-scale solar projects throughout the world and we are on track to meet our shipment guidance of low single digit sequential growth in the second quarter of 2011."
Heraeus exhibits SOL9400 series at Intersolar North America
Intersolar North America 2011, WEST CONSHOHOCKEN, USA: The Heraeus Photovoltaic Business Unit, a world leader in developing front and back-side silver paste for crystalline solar cells, will be exhibiting at this year’s Intersolar North America trade show in San Francisco, CA. A four-year veteran to the show, Heraeus will be featuring some of their newest products, including the SOL9400 series, on the 3rd level of the Moscone West Convention Center at booth number 9357.
“We are looking forward to attending this year’s Intersolar North America trade show,” said Andy London, VP of Heraeus Materials Technology LLC in West Conshohocken. “This show has grown very rapidly over the years and provides a great opportunity for us to address our global customers.”
Heraeus will be highlighting the SOL9400 Series at this year’s trade show. The SOL9400 Series provides even greater performance over Heraeus’ industry leading SOL9235H paste, released in early 2009 for crystalline photovoltaic cells. Optimized for high efficiency and high throughput processing, the SOL9400 Series has an excellent aspect ratio.
A well-known industry leader, this series will display optimal performance to maintain consumers’ high expectations for quality. This series provides key benefits such as its unique design for high sheet resistance emitter applications and high aspect ratio gridlines that minimize shading, while increasing line conductivity. Heraeus also plans to make a special announcement during the show about a new series of low silver content materials that will be released later in the year.
“We are looking forward to attending this year’s Intersolar North America trade show,” said Andy London, VP of Heraeus Materials Technology LLC in West Conshohocken. “This show has grown very rapidly over the years and provides a great opportunity for us to address our global customers.”
Heraeus will be highlighting the SOL9400 Series at this year’s trade show. The SOL9400 Series provides even greater performance over Heraeus’ industry leading SOL9235H paste, released in early 2009 for crystalline photovoltaic cells. Optimized for high efficiency and high throughput processing, the SOL9400 Series has an excellent aspect ratio.
A well-known industry leader, this series will display optimal performance to maintain consumers’ high expectations for quality. This series provides key benefits such as its unique design for high sheet resistance emitter applications and high aspect ratio gridlines that minimize shading, while increasing line conductivity. Heraeus also plans to make a special announcement during the show about a new series of low silver content materials that will be released later in the year.
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