Emcore and San'an Optoelectronics have signed a joint-venture deal for the development, manufacture, and distribution of concentration photovoltaic (CPV) receivers, modules, and systems for terrestrial solar power applications in China. The JV, called Suncore Photovoltaics, will be owned 40% by Emcore and 60% by San'an, which is San'an is the largest producer of LED chips and epitaxial wafers in China and is also a leader in CPV manufacturing and deployment in the country.
Under the terms of the agreement, all operational activities and business for CPV receivers, modules, and systems at both San'an and Emcore's Langfang, China, manufacturing facilities will eventually be transferred to Suncore at its primary manufacturing operations to be located in Wuhu City, Anhui, China.
The Wuhu economic development organization has agreed to provide Suncore with significant economic incentives, including land, subsidies, grants, and other incentives, although the amount of the incentives was not announced.
Suncore will become Emcore's primary low-cost, high-volume manufacturing base for CPV receivers incorporating the company's CPV solar cells, and also for CPV modules and systems to support both the JV partners' worldwide sales efforts.
Subsequent to the establishment of Suncore, the company will begin to produce 12MW of CPV systems for San'an's current customers and 2MW of CPV components for projects sourced by Emcore.
The companies are also aggressively pursuing multiple CPV project opportunities, including the 280MW solar energy plan in six western regions of China recently announced by the Chinese government.
In conjunction with the formation of the JV, Emcore will grant Suncore an exclusive license to manufacture Emcore's current and future improved CPV receivers, modules, and systems in China for terrestrial solar power applications.
San'an chairman Xiucheng Lin will serve as the new venture's chairman, while Emcore's senior VP Charlie Wang will become GM.
"The formation of this joint venture represents a significant step in Emcore's business strategy toward introducing CPV products for terrestrial solar power applications in one of the fastest growing solar power markets," said Hong Hou, president/CEO of Emcore. "By commercializing Emcore's terrestrial Gen-III CPV systems through this low-cost manufacturing base, we believe Emcore will be in position to gain significant advantages over competing terrestrial solar technologies. Furthermore, the joint venture provides an ideal platform to penetrate China's emerging renewable energy market."
"China is accelerating development and deployment of solar energy resources," said San'an's Lin. "The potential for CPV terrestrial systems over the next several years is enormous. Combining the advantages provided by San'an and Emcore, the joint venture will have the capability of high-volume and low-cost manufacturing, the most advanced CPV technology and continued innovation. Suncore will play a key role in accelerating the market adoption and deployment of CPV solar power."
Additional financial terms of the agreement were not disclosed.