Solar

Q-Cells & MEMC To Build 50-MW Solar Park

Q-Cells SE and MEMC Electronic Materials have formed a joint venture to construct solar photovoltaic (PV) generation facilities, in which each partner will have a 50% share. The first shared project will be a facility in Strasskirchen, Bavaria. With a total capacity of around 50 megawatts (MW), this will be one of the largest ground mounted PV system in Germany to use crystalline solar cell technology.

Q-Cells International, a 100%-owned subsidiary of Q-Cells SE, has been commissioned to construct the facility, which will include around 225,000 modules, installed on a surface equivalent in size to around 135 hectares.

Q-Cells and MEMC Electronic Materials Inc. have agreed to each invest up to around €72 million [US $102.6 million] in the joint venture so that the two partners can cover the bridging finance during the construction phase. MEMC will supply the silicon wafers for the joint venture, and Q-Cells will turn them into solar cells.

In a related story, MEMC has amended its long term solar wafer supply agreement with Suntech Power similar to the amendment with Suntech executed in February 2009. The most recent amendment provides that aggregate revenues to MEMC over the ten year life of the agreement will remain unchanged, but an additional price reduction and volume increase for the second half of 2009 have been effectuated.

The parties have also agreed in the amendment to provide a deferral mechanism for a potential 2009 purchase shortfall by Suntech (from the increased volume commitment), by allowing Suntech to make up the purchase shortfall in equal increments over the next five years. Such deferred volume amounts will be added to Suntech’s minimum purchase requirements for future contract years.

MEMC is also negotiating an amendment to its long term solar wafer agreement with Gintech Energy Corporation, but has not yet reached a resolution on such amendment.