Troubled solar-thermal power plant specialist Solar Millennium has agreed to sell its 2.25GW project pipeline to solarhybrid. Consequently, Solar Millennium said it would focus its future business plans on planned solar-thermal and hybrid power plants in Europe, Asia, North Africa and Latin America, leaving the door open for solarhybrid to develop the US projects.
solarhybrid plans to supply engineering, procurement and construction services for all its new portfolio, which includes the 1GW Blythe Solar Power Project in California. The majority of the remaining 1.25GW of systems are also located in the southwest of the US.
“The agreement on the US projects is not only favorable for Solar Millennium and its shareholders from an economic and strategic point of view. It ensures that our project investments in the US retain their value, adequately involves Solar Millennium in the future earnings of the solar power plants located there and gives the company a clear structure,” remarked Solar Millennium CEO Dr. Christoph Wolff.
“With this exciting transaction we would gain unparalled access to the US market and successfully achieve a significant milestone in the internationalization of our business,” added solarhybrid CEO Tom Schröder. “We are confident in our ability to finalise the contracts by October 31.”
The pipeline acquisition would make solarhybrid a major PV-based project developer in the US, competing at the highest levels with First Solar, SunPower and MEMC’s subsidiary, SunEdison. Though financial details of the pipeline were withheld, solarhybrid revealed that it made a down payment on the deal to Solar Millennium, financed from its cash flows.
solarhybrid also noted that it expects revenue to exceed €400 million in FY2011.