Xinte Energy planning 200,000MT ‘green’ polysilicon complex in Inner Mongolia

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Major China-based polysilicon producer Xinte Energy is planning the world’s single largest polysilicon production complex.

The facility, slated for development near the city of Baotou, Inner Mongolia, would produce 200,000MT of polysilicon per annum.

Xinte Energy’s existing major hub for polysilicon production is an 80,000MT facility in Urumqi, Xinjiang.

The plans, which have yet to go through site selection and approval with the Baotou Municipal Government, include an initial polysilicon plant with an annual capacity of 100,000MT, requiring an investment of RMB8.0 billion (US$1.24 billion).

Should the project be ratified this year, Xinte does not expect any significant impact on the company’s operating performance in 2021.

However, after confirmation of the project and construction approval procedures are agreed, groundbreaking and construction could start within one month. The Phase I project is expected to take approximately 18 to 24-months to complete.

With global solar demand forecasted to increase significantly in 2021, reaching anywhere between 150GW to 200GW, polysilicon supply in China is limited with all major cost competitive producers having secured near-term supply contracts and are capacity-constrained until new polysilicon plants are built and ramped.

Market forecasters expect only around 150,000MT of new polysilicon capacity to come on-stream in 2021, with larger amounts not due until later in 2022 and beyond when global solar end market demand could be far exceeding 200GW per annum.

Average polysilicon prices (ASPs) have significantly increased since the second-half of 2020 due to capacity constraints. In reporting third quarter 2020 financial results, polysilicon producer Daqo New Energy said its ASP was US$9.13/kg in Q3 2020, compared to US$7.04/kg in Q2 2020.

Spot market ASPs have hit US$14/kg to US$15/kg in 2021. The strong pricing has led to higher wafer and solar cell prices, impacting margins for PV module manufacturers already being impacted from significantly higher PV glass costs, again due to capacity constraints in China.

Carbon footprint

The Phase I plans by Xinte include building its own power plants to feed the 100,000MT polysilicon plant. Xinte has previously built coal-fired power stations close to coal mines and transmitted electricity to the nearby production plant.

However, Xinte noted that the Baotou plant would require around 10GW of PV and wind power plants to provide electricity, which would be built in tandem with the plant needs.

Not surprisingly, Xinte noted that the second 100,000MT polysilicon plant would be built according to market demand after the initial plant was operational.

The carbon footprint of polysilicon production could become a major issue in relation to downstream PV power plant bidding and potential government policies in the EU, US and other countries, which would impact China-based PV module manufacturers abilities to compete on major overseas projects in the future under ‘Green New Deals’.

Read Next

May 18, 2021
Major polysilicon provider Daqo New Energy has reported a rise in revenues as average selling prices (ASPs) inched upward in the opening quarter, however the firm’s ASPs could effectively double in Q2.
May 18, 2021
Indian authorities have launched an anti-dumping investigation into imports of solar cells from China, Thailand and Vietnam following an application filed by the Indian Solar Manufacturers Association.
May 17, 2021
Leading solar module and wafer provider LONGi has increased its wafer prices by around 12%, reflecting increased material and components prices being felt across the industry.
May 17, 2021
The Solar Media podcast is back for another episode, and Liam Stoker and Andy Colthorpe explores the deepening materials crisis impacting upstream solar manufacturing, through from modules to trackers.
May 14, 2021
The PV industry “must remain vigilant” across its supply chain in meeting global human rights standards, trade association SolarPower Europe has said in a new sustainability report.
May 13, 2021
The solar polysilicon sector is experiencing a changing of the guard, and all four of the top manufacturers will be Chinese next year, research firm Bernreuter Research has predicted.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021