In a supply deal worth approximately US$500 million (NOK 2.9 billion), REC will supply an Asia-based PV company with approximately 1,500MT per annum of silicon powder for a timeframe of seven years. Silicon powder, traditionally a low-value material, is a form of fine particulate silicon from the FBR process. The take-or-pay agreement is a result of REC’s development of technologies to develop this material and address commercial opportunities.
Under the terms of the agreement, prices and volumes of the silicon powder are predetermined for the seven-year period. Annual delivery volumes are expected to reach 1,500MT following lower volume deliveries earlier in the contract. REC will receive a prepayment fee of $65 million (~NOK 380 million) by the end of 2008.
“This will enable us to increase the revenue and consequently the financial return on our latest polysilicon expansions, through the marketing of a product that REC presently does not intend to utilize internally,” says Erik Thorsen, President and CEO of REC.
Unlock unlimited access for 12 whole months of distinctive global analysis
Photovoltaics International is now included.
- Regular insight and analysis of the industry’s biggest developments
- In-depth interviews with the industry’s leading figures
- Unlimited digital access to the PV Tech Power journal catalogue
- Unlimited digital access to the Photovoltaics International journal catalogue
- Access to more than 1,000 technical papers
- Discounts on Solar Media’s portfolio of events, in-person and virtual
Or continue reading this article for free
By Síle Mc Mahon