REC Secures $400 M Wafer Contract with BP Solar

Under a new agreement with BP Solar, REC’s subsidiary, REC ScanWafer, will deliver multicrystalline silicon wafers worth approximately NOK 2.7 billion [US$400 million] over the next six years. BP Solar has an option to purchase additional wafers with a total value of approx. NOK 200 million [US$ 30 million] during the four last years of the agreement.

“By entering into a long-term supply agreement with a reputable company like BP Solar we continue to build a robust platform for further growth in multicrystalline wafers,” said Erik Thorsen, President and CEO of REC ASA. ‘This agreement is another proof point for BP Solar’s commitment to growth as we continue our efforts to expand capacities worldwide to meet strong customer demand,” said Lee Edwards, BP Solar CEO. Including ongoing expansion projects, REC will double its current wafer production capacity to approximately 600 MW. As additional polysilicon becomes available from the expansion projects in REC Silicon, the contract portfolio of REC now forms the basis for further wafer expansion projects going forward. This is REC’s third long-term sales agreement on multicrystalline silicon wafers in recent months, bringing its total value to approximately NOK 8 billion [US$1.2 billion]. BP Solar, with manufacturing facilities in the U.S., Spain, India, China and Australia, announced plans to invest $8 billion over 10 years in a new business called BP Alternative Energy (in 2005), which aims to extend BP’s capabilities in renewable energy sources such as solar and wind power as well as hydrogen and gas-fired power generation.
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