MEMC joint venture with Q-Cells solar power plant operators

MEMC Electronic Materials and Q-Cells subsidiary of Q-Cells International will be a joint venture to construct and operate a solar energy power station, which MEMC will invest 100 million U.S. dollars. The first project is located in Germany, Bavaria Strasskirchen, crystalline silicon solar modules used to build 50MW solar park. MEMC will own 50% stake. After completion of the project, the two companies said that the solar park will be sold to a third party. The project will use 225,000 modules installed on the ground of 135 hectares can be made available to 15,000 users, 35,000 tons per year reduction in CO2 emissions.

The new joint venture with Q-Cells appear to the previously announced co-operation with LDK Solar is different. With Q-Cells in the LDK in China and Europe in solar energy projects, LDK does not bear any financial cost. "MEMC sell silicon to Q-Cells, to comply with MEMC sales revenue will be calculated strategy to get the two sides recognized the cost of silicon will be included in the final product cost of sales," MEMC's SVP and CFO Ken Hannah said.

Hannah also pointed out that, MEMC has begun shipping to the Q-Cells silicon, and then be manufactured into the new solar battery park.

"We believe that the active participation of the lower reaches of the solar project, MEMC will receive greater value," MEMC President and CEO Ahmad Chatila said. At present, the common level of Germany's leading photovoltaic solar power plant projects, dominated by thin film technology, especially in First Solar's CdTe components. This latest joint venture the two companies shows that the traditional crystalline silicon PV manufacturers and silicon suppliers are also willing to projects in the high consumption of large-scale investment in order to compete with thin film technology.

Jul. 27, 2009