Cooperation Framework Agreement Signed During China-US Presidential Summit
4:30 am EST, Tuesday November 17, 2009
BEIJING–(BUSINESS WIRE)–First Solar, Inc. (FSLR) today announced a Cooperation Framework Agreement with the Chinese government that takes another critical step towards the realization of the world’s largest solar power plant in the autonomous region of Inner Mongolia, China.
First Solar President Bruce Sohn and Mayor Yun Guangzhong of the Ordos City Government signed the Cooperation Framework Agreement in the presence of Chinese Vice Premier Li Keqiang, Vice Minister Liu Qi of the National Energy Administration, and U.S. Secretary of Energy Steven Chu. The Agreement between First Solar and Ordos spells out additional project details and local support that advance the development of the 2 gigawatt (GW) solar power plant and confirm the June 1, 2010 expected construction start date for the 30 megawatt (MW) Phase 1. First Solar and Ordos also agreed to establish two committees to ensure the successful execution of the project and to develop a new energy industry in Ordos.
“This Cooperation Framework Agreement and its recognition by the National Energy Administration mark a critical step forward in the approval process for the Ordos project, one of the world’s most ambitious renewable energy projects,” said First Solar Chief Executive Officer Rob Gillette. “It reinforces the commitment of First Solar, the Chinese government, and the Ordos local government to make an immediate contribution to the development of a healthy solar industry in China and to the reduction of greenhouse gas emissions.”
The signing ceremony took place as part of the U.S.-China Summit where U.S. President Barack Obama and Chinese President Hu Jintao met to discuss upcoming global climate change negotiations and clean energy, among other topics. “President Obama’s trip to Beijing is a significant step forward in further solidifying bilateral relations with China. First Solar is enthusiastic in contributing to the commercial relations of our two countries through this Cooperative Framework Agreement,” said Mr. Gillette.
“Solar energy will play a significant role in achieving China’s low carbon future,” said Yun Guangzhong, Mayor of Ordos City. “We are very pleased to be partnering with one of the solar industry’s global leaders in a project of such significance.”
The 2GW First Solar project is to be built in multiple phases, beginning with the 30MW Phase 1. Phases 2, 3 and 4 are to be 100MW, 870MW, and 1,000MW, respectively. Phases 2 and 3 are to be completed by 2014 and Phase 4 is to be completed by 2019. The project is part of a planned 11.95GW New Energy Industry Demonstration Zone in Ordos City, Inner Mongolia. The New Energy Industry Demonstration Zone is expected to combine solar, wind, hydroelectric and biomass power sources to provide a steady supply of renewable energy to the region that includes the Chinese capital.
Yesterday, Mr. Sohn participated in a Clean Energy Roundtable with National Energy Administration Vice Minister Liu Qi, Energy Secretary Chu, Commerce Secretary Locke, U.S. Trade Representative Kirk and a small group of senior U.S. and Chinese business executives. During the high-level Roundtable, in which First Solar was asked to address the significance of renewable energy, Mr. Sohn told participants that China’s vision and leadership in supporting solar energy and the Ordos project will “serve as a model of renewable power generation for the world. Projects such as Ordos will enable significant cost reductions through scale, and make solar a truly sustainable energy source in the near future. First Solar is committed to helping build a sustainable solar industry and low carbon economy in China by bringing advanced solar PV technology, global experience, and a focus on cost reduction and environmental sustainability.”
The Cooperation Framework Agreement sets forth the agreement in principle of the parties concerning the project and related activities. Final agreement between the parties is subject to the negotiation and execution of definitive agreements among the parties.
First Solar sells California project to NRG
Mon Nov 23, 2009 1:25pm EST
* NRG to buy 21-megawatt solar project in Blythe
* Financial terms of deal not disclosed
LOS ANGELES, Nov 23 (Reuters) – U.S. solar power leader First Solar Inc (FSLR) said on Monday that it was selling the first of its utility-scale solar power projects in California to national power plant operator NRG Energy Inc (NRG).
The companies did not disclose financial terms of the deal.
First Solar will operate the 21-megawatt solar power project for NRG Energy under a long-term contract, the company said in a statement.
Macquarie Securities analyst Kelly Dougherty said in a note to clients that the news “is an incremental positive” for First Solar and will likely add to the company’s revenue for the fourth quarter.
Tempe, Arizona-based First Solar started building the project in September. The plant, about 200 miles east of Los Angeles in Blythe, California, is expected to be finished by the end of the year. Electricity from the plant will be sold to Southern California Edison, a unit of Edison International (EIX).
First Solar is one of the world’s largest producers of photovoltaic cells, which turn sunlight into electricity. Its production costs are the lowest in the industry, although its thin-film cadmium telluride cells are not as efficient in capturing sunlight as more traditional silicon-based cells.
The sale follows another recent deal for First Solar. In October, the company sold a 20-megawatt solar power project in Ontario to Enbridge Inc (ENB), Canada’s largest oil pipeline company.
Princeton, New Jersey-based NRG has mostly fossil fuel-heavy power plants that generate enough electricity to serve 20 million U.S. households, but plans to add a range of renewable energy technologies.
The company owns three land-based wind farms in Texas and invested in solar thermal start-up eSolar earlier this year.
Shares of First Solar were up half a percent at $121.84 each in trading on Monday on the Nasdaq.
(Reporting by Laura Isensee; Editing by Steve Orlofsky)