Dutch startup Resilicon granted NZIA support for new European polysilicon plant

The EU offers strategic projects status under the NZIA to manufacturing projects that produce net zero technologies and offer supply chain resilience, high-quality jobs and the opportunity to scale up European net zero production.

Successful projects benefit from streamlined permitting and “rapid administrative treatment”, the European Commission has said, as well as access to financing advice. The NZIA will also require that public auctions for renewable energy capacity in EU member states earmark a portion of their capacity for “resilient” projects using components from alternative suppliers, including from the EU itself.

Resilicon plans to produce ultra-pure polysilicon and silane at a planned facility in Groningen, Netherlands. It said it will power the production using renewable energy and will “process green raw materials as much as possible, such as metallurgical silicon and hydrogen, alongside auxiliary materials like steam, water and nitrogen.”

“This is a major recognition of the significance of Resilicon,” said CEO Remco Rijn. “It confirms and strengthens our ambition to build sustainable and reliable polysilicon production in Europe, support more resilient European supply chains, and create attractive jobs and development opportunities.”

Most polysilicon is produced in China, where the industry has been straining beneath consistently low prices and oversupply and major producers have struggled to turn a profit in recent years. China’s dominance in upstream solar supply has caused widespread concern as solar power has become a cornerstone of the global energy transition, pushing the US, Indian and now European governments to support domestic manufacturing capacity.

There are also major polysilicon expansions underway in the Middle East, where United Solar cut the ribbon on its 40GW polysilicon production plant in Oman earlier this year.

Currently, Wacker Chemie operates polysilicon production lines in Germany, though there is currently no end market for solar-grade polysilicon in Europe.

This could prove a challenge for Resilicon, with no silicon wafer or solar cell manufacturing capacity currently operating in Europe. Polysilicon prices have also been remarkably low, given the persistent oversupply in the Chinese market, though NZIA auction support and the attraction of European-made product could shield Resilicon from that issue.

The NZIA and Industrial Accelerator Act IAA are looking to establish new domestic solar manufacturing capacity, with the latter particularly targeting solar cell production as a key pillar for “Made in EU” solar products. Other NZIA strategic projects are likely to be announced in the coming months.

In its LinkedIn announcement, Resilicon issued a call for investors “interested in supporting Europe’s future energy, battery and semiconductor supply chains” to contact them.