MEMC makes major investment in downstream solar projects with Q-Cells

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

MEMC Electronic Materials and Q-Cells International, a subsidiary of Q-Cells SE that specialises in building and operating PV power plants, have established a joint venture that will see MEMC partner with an investment of US$100 million in solar power plants. The first project is a massive 50MWp solar park in Strasskirchen, Bavaria, using crystalline solar cell-based modules. MEMC will have a 50% stake in the project. Upon completion, the partners said they would sell the park to a third party.

“Our investment is enabling one or more [solar park] projects to precede that have stalled due to lack of financing,” noted Ahmad Chatila President and CEO of MEMC in its quarterly financial conference call.

Q-Cells recently announced reduction expected in revenue for 2009, due in part to solar projects being delayed because of continued difficulties in raising funds from banks to finance projects due to the credit crisis.

The new joint venture would seem to differ from Q-Cells previously announced partnership with LDK Solar, which did not include any financial commitment by LDK in relation to collaboration on solar projects in China and Europe.

“As MEMC sells wafers to Q-Cells, the revenue from those sales will be recognized consistent with the MEMC’s revenue recognition policy, and the cost associated with those wafers will be included in cost of goods sold,” noted Ken Hannah, SVP and CFO at MEMC during its quarterly financial analyst conference call.

MEMC’s Hannah also noted that the company had already started shipping wafers to Q-Cells to be processed into solar cells for the new solar park.

“I believe that we can capture more value by taking an active role in downstream solar projects. MEMC has a strong brand, a reputation for high-quality products, a 50-year history, significant international property and technology resources, and has a very strong financial position,” commented Chatila during the conference call. “Very few companies in the solar space are as well-qualified in my opinion to take a leading role and unlock or cancel downstream values. In the short-term, much of the current slowdown in the market is due to the lack of attractive projects enhancing.”

MEMC is able to invest such sums required due to its US$1.2 billion in cash and short-term investments and trades with almost no debt. China-based LDK is highly leveraged and does not have the capital to invest in the same way as MEMC.

The majority of utility-scale PV power plant projects in Germany have recently become dominated by thin-film technologies, in particular First Solar’s CdTe modules. This latest news would indicate that conventional crystalline PV manufacturers and silicon wafer suppliers are willing to invest significant amounts of money in high consumption projects to compete with thin film.

21 September 2021
C&I consumers currently source only about 7% of their power requirement directly from renewables. Indian corporate renewable market has grown rapidly and holds huge growth potential as companies look to reduce power purchase costs and cut carbon emissions. BRIDGE TO INDIA has built significant expertise in the corporate renewable business by working on over 30 consulting assignments and various research reports. We are organizing this conference to bring all stakeholders together and delve deeper into various market aspects. The conference will be held on a virtual platform with excellent networking opportunities for all participants.
22 September 2021
To commemorate the World Energy Storage Day(WESD) on 22 September, being recognized worldwide, Customized Energy Solutions (CES) and India Energy Storage Alliance (IESA) is organising the 5th global conference and virtual expo, which will be held virtually on 22 September 2021. WESD is a global movement initiated by various apex trade bodies working to promote and adopt energy storage, e-mobility & green hydrogen technologies for a sustainable future. The forthcoming edition of WESD is expected to attract global participation with an intent to facilitate bi-lateral trade, market development and new research and innovation, which will invite 100+ countries, 100+ regulators & policy makers, 100+ International speakers,1000+ organisations, 100+ partners & exhibitors and 20,000+ global delegates.
28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.

Read Next

September 21, 2021
India added 521MW of rooftop solar in Q2 2021, an increase of 517% compared to the 85MW added in the same quarter last year despite a slight increase in costs, according to a Mercom India report.
September 21, 2021
Private equity firm American Securities has secured a deal to acquire US solar engineering, procurement and construction (EPC) provider Swinerton Renewable Energy and its operations and maintenance (O&M) subsidiary SOLV from Swinerton Incorporated.
September 21, 2021
FIMER has launched two new platforms for the utility-scale solar sector, the PVS-350-TL string inverter for decentralised applications and the PVS-260/PVS-300 modular conversion solution designed for centralised applications.
September 20, 2021
A subsidiary of Indian utility Tata Power has received a letter of intent to set up a 250MW grid-connected solar project in the state of Maharashtra.
September 20, 2021
Vattenfall has increased its emissions reduction targets to be in line with the 1.5 degrees Celsius scenario set out in the Paris Climate Agreement in a move that has been approved by the Science Based Targets initiative (SBTi) and which involves increasing its renewable capacity four-fold.
September 20, 2021
Lightsource BP has increased its solar deployment target to 25GW by 2025 after securing a US$1.8 billion financing facility that will help fund its global expansion.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021