Wuxi, China: Suntech Signs 7 Gigawatt Wafer Agreement

Wuxi, China: Suntech Signs 7 Gigawatt Wafer Agreement

Suntech Power has signed a definitive thirteen-year silicon wafer supply agreement with a subsidiary of Shunda Holdings Co. Ltd. Under the terms of the supply agreement, Shunda will supply Suntech specified annual volumes of silicon wafers with a total volume of approximately 7GW from 2008 to 2020.

Suntech Power also acquired a minority stake in Shunda Holdings Co. Ltd, from Actis, a leading private equity investor in emerging markets, and Waichun Investment Fund, for a total consideration of $98.9 million.

Dr. Zhengrong Shi, Suntech’s Chairman and CEO, said: “This strategic investment and long term supply agreement will be instrumental in the profitable and rapid growth of both Suntech and Shunda. This is another example of how we can leverage funds raised through our recent convertible notes offering to pursue strategic investments and high volume contracts that strengthen the long term cost structure of our business model. We believe that these transactions accelerate Suntech’s path to grid parity and significantly enhance Suntech’s long term cost competitiveness through better pricing and volume allocations. The multi-year commitment to purchase silicon similarly provides Shunda with the security and visibility to focus on expanding a world-class polysilicon plant.”

Shunda produces silicon ingots and wafers and currently supplies a number of major producers of PV crystalline cells and modules. Shunda is in the final stages of building a polysilicon plant in Yangzhou, Jiangsu province, China with a first phase capacity of 1,500 metric tons. Shunda intends to initiate production of solar grade polysilicon in the third quarter of 2008.

The polysilicon plant will utilize the advanced Siemens production process, with a closed-loop recycling system, and employ equipment and engineering services from industry leading vendors including GT Solar Incorporated.

Dr. Shi remarked, “Located in our home province of Jiangsu, Shunda’s proximity to Suntech will enhance the synergies that we can achieve by integrating polysilicon refinement right through to the manufacture of premium quality solar modules. Shunda’s clear commitment to maintaining the highest environmental standards in the production of polysilicon was another key factor considered in the lead up to this partnership. We look forward to building a close and mutually supportive relationship with Shunda.”

Mr. Yunda Ni, Shunda’s CEO said, “We are delighted to enter this partnership with Suntech, a world leader in the solar industry. This long term contract will provide a stable foundation for Shunda to expand our polysilicon and wafer production facilities and help establish Shunda as a premier manufacturer of both polysilicon and silicon wafers. Our polysilicon plant is designed to employ proven technology and production techniques in order to achieve the highest standards of clean manufacturing. We look forward to making a growing contribution to the development of the solar industry.”

Commenting on Suntech’s improved silicon outlook, Dr. Shi continued, “The relatively small quantities of silicon wafers to be supplied in 2008 from Shunda will replace some of our higher-priced spot market silicon and will make an important contribution towards the completion of our 2008 production target of 530MW. With this long-term agreement, we are able to increase our silicon secured for 2009 by 50MW to 800MW of silicon with an average cost more than 20% below our average cost of silicon in 2007.”

Beijing China 2008 Olympics Solar

The 2008 Olympics in Beijing, China will be using solar energy to heat the shower water in the Olympic village. This state of the art solar power energy system will provide hot showers for over 10,000 athletes, showing that alternative energy can be a powerful force when harnessed properly.

This solar system, which is to be installed later next year, was donated by the Italian government to the Beijing 2008 Olympics. The Beijing Olympics organizers have committed themselves to making the 2008 games to be environmentally friendly in a multitude of ways. This seems to be a new trend that is emerging in the worldwide sports community. The World Cup proved that alternative energy can go a long way to help reduce our impact on the environment.

Green Energy the first to set up Solar Panel factory in China

Green Energy Technology Inc. (GET), the largest solar-panel crystal-growing manufacturer in Taiwan, reportedly plans to set up a plant in China, making it the first Taiwan-based company there, according to local Chinese-language economic daily newspaper Economic Daily News (EDN).

EDN said that GET might choose among Liaoning, Shandong, Shanghai to construct its new plant.

Industry insiders pointed out that GET is already an OEM supplier for Suntech Power, the largest solar-cell maker in China, with the plant-building expected to further expand the partnership between the two parties.

Suntech, GET's major customer, expects to ship solar-cell panels with total capacity of 530 MW this year, is currently the largest solar-cell maker in the Great China region with annual revenue of US$1.9 billion to US$2.1 billion.

As exports of poly-silicon products are levied 17% in value-added tax, the insider said, GET's new plant in China could enable material supply directly from Suntech at lower cost to achieve higher margins.

Solar power is one the focal-points in the Chinese central government's 11th five-year economic development plan, suggesting promise in the huge market.

Other Taiwan-based solar-cell-related companies have also set up business in China by establishing production facilities or through re-investments, including Motech Industrial Inc., PanJit International, Wafer Works Corp. etc.

GET, however, will be the first Taiwan-based solar-cell producer in China. Currently GET is the largest solar-cell crystal-growing maker in Taiwan with a maximum annual capacity of 400 MW (megawatt), while the company is actively stepping into thin-film type solar-panel segment with a new product line to be inaugurated in the fourth quarter this year.

China Solar Power Enters Thin Film Solar Cell Market in China

China Solar Power Enters Thin Film Solar Cell Market in China by Forging Strategic Alliance with ULVAC, Inc. of Japan

China Solar Power (Holdings) Ltd. ("CSP"), a subsidiary of Tano China Capital Management, Inc. (TCCMI), a private equity investment management company focusing on Chinese companies and industries, has entered the thin film solar cell market in China by partnering with ULVAC, Inc. of Japan. ULVAC is a leading solar cell production equipment manufacturer headquartered in Chigasaki, Japan. ULVAC's President and CEO is Mr. Hidenori Suwa. TCCMI's Managing Directors are Messrs. Charles E. Johnson and Chi-Jen Frank Liu.

ULVAC, CSP and its affiliate Tano China Private Equity Fund II signed a Strategic Alliance Agreement in Chigasaki on October 17, 2007. The objective of the Strategic Alliance is to collaborate to enhance ULVAC's position as a leading provider of thin film photovoltaic (PV) production lines worldwide and CSP's position as the leading thin film solar cell manufacturer in China. CSP has selected Yantai, in Shandong Province in Northwest China as the site of its first manufacturing facilities.

The PV Production Lines supplied by ULVAC utilize Generation 5 (G5) sized glass substrates (1100 x 1400 mm) designed for full-scale solar power generation plants. The lines are first of a kind large-sized manufacturing lines to be produced in China for the Chinese and worldwide markets. The plant will initially produce modules based on single junction amorphous silicon (a-Si) technology with an annual capacity of about 50 MW. CSP will quickly transition the production lines to produce tandem junction modules with a higher-efficiency rating. The annual capacity for the line with the higher efficiency module is expected to increase from 50 MW to approximately 64MW in 2010.

The lines will incorporate plasma-enhanced chemical vapor deposition (PE-CVD) equipment, laser scribers, sputtering equipment and encapsulation equipment. ULVAC will install and commission the production lines at CSP's Yantai plant and train CSP's operations personnel.

ULVAC has invested approximately 3,000 million yen ($28 million USD) to set up a new thin film solar cell manufacturing demonstration line utilizing G5 size substrates at its Chigasaki headquarters. ULVAC's demonstration line can manufacture and evaluate a-Si thin film solar cells as well as a-Si/?-c Si tandem structure thin film solar cells stacked with ?-c Si films. The latter generates higher power generation efficiency of at least 9%.

Since the early 1980s, ULVAC has supplied manufacturing equipment for solar cells largely to domestic Japanese companies. Since 1990, Flat Panel Display (FPD) manufacturing equipment technology and in particular TFT-LCD technology, has rapidly evolved and added value to solar cell manufacturing equipment. This has led to greatly increased market demand worldwide for solar cell manufacturing lines. ULVAC has supplied not only the solar cell manufacturing lines but also installation and commissioning of the lines and training for customer personnel.

China Solar Energy Industry Research And Forecast

China Solar Energy Industry Research And Forecast 2008 ~ 2010

China is the biggest solar water heater producer and consumer in the world. Both her output and consumption of solar water heaters account for over a half of the world total. Research shows that 58.52% of Chinese households have the intention of buying solar water heaters or replacing their gas/electric heaters with solar ones in five years' time. It is estimated that, by 2010, with 70 million square meters more of solar water heaters to be installed before then, the overall area of solar water heaters installed in China will reach 100 million square meters, amounting to a market capacity of 60 billion RMB.

Research and Markets has announced the addition of China Solar Energy Industry Research and Forecast, 2008-2010 to their offering. Solar is one of the fastest growing energy technologies in the global economy and in the cleantech universe. As is envisioned by the U.S. space program, future solar energy power plants will be placed on an orbit of about 6,000 km above the earth, from which electricity will be transmitted back to the earth by way of microwaves or laser beans.

If this plan comes to fruition, utilization of solar energy will no longer be subjected to such forces as the coming of nights and weather changes. Compared with other energies like coal and petroleum, solar energy is infinite and inexhaustible. It is also a type of clean energy that causes no environmental pollution.

Therefore, it will have an immeasurable impact on the future of human race.

Commercial development of solar energy has become a worldwide trend: The European Union, Japan and the United States have focused their energy supply security on the development of renewable energy resources such as solar energy. It is estimated that by 2030 solar energy-generated power will account for over ten percent of total global power supply, and that figure will rise to twenty percent in 2050. Large-scale development and exploitation of solar energy will help it to take up its due market share in energy supply.

Photovoltaic energy production that is combined to the grid is the major means for large-scale and commercial use of solar energy.

China is expected to emerge as one of the greatest solar energy production bases in the world after 2008. Certain fundamental conditions are already in place in China for the large scale development and exploitation of solar energy. These conditions include China's huge potential domestic market and solid resource foundation. Besides, China's solar energy industry has already taken shape, and progress has been made in technological development and innovation.

Solar energy becomes the new hope for China's energy resources: Given the recurrent oil and coal price spikes as well as the power shortages nationwide, energy is increasingly having a bottleneck effect on China's economy. This brings new opportunities for the development of solar energy.

The cost of generating electricity out of solar energy will come close to or even become lower than that of power generation by coal in the near future, making it possible for China to conduct vigorous development of solar energy. China's solar energy industry, having been nurtured in the domestic market for over ten years, is fully launched by now, and it has gained momentum for rapid development in the future.

China is the biggest solar water heater producer and consumer in the world. Both her output and consumption of solar water heaters account for over a half of the world total. Research shows that 58.52% of Chinese households have the intention of buying solar water heaters or replacing their gas/electric heaters with solar ones in five years' time. It is estimated that, by 2010, with 70 million square meters more of solar water heaters to be installed before then, the overall area of solar water heaters installed in China will reach 100 million square meters, amounting to a market capacity of 60 billion RMB.

The annual growth rate in the coming years will be maintained at 20 to 30 percent, which means that solar energy industry in China will become a genuine green "gold mine." If a quarter of the Chinese population use solar water heaters, China's solar energy market in 2020 will be projected to reach 270 million square meters. And this is the target the Chinese government is working at. Investment in solar water heater industry is worthwhile.

Our solar water heater industry starts with a very thin basis, but it has been expanding ever since its launch. Currently, the sales volume of solar water heaters in China is ten times that in Europe. Whether it is measured in terms of output or number of solar water heaters sold domestically, China ranks No. 1 in the world. Solar water heaters are also being applied and adapted to a wider range of uses and purposes in our country, so solar energy has a very bright future here.

At present, there are about 28,000 villages in China, or 7 million households and 30 million rural people, that have not yet had access to electricity, and 60% of the counties that have access are in great shortage of it. Most of these powerless areas, rich in solar energy resources, possess a huge market potential for photovoltaic energy production. Such being the case, Chinese government plans to exploit the rich photovoltaic energy and provide electricity for remote areas before 2010. Since 2005, China has begun large-scale construction of desert power plants and rooftop photovoltaic systems combined to the grid.

The market share of photovoltaic energy is expected to grow from 4 percent in 2003 to 20 percent in 2010 and to 60 percent in 2020. Most solar energy enterprises pursue the mode of photovoltaic electricity generation, which is one of the fastest growing industries in the world. It is also the industry that generates the greatest profits among all renewable resource industries. Solar cell industry investment trends: Currently, China's solar energy industry has already developed a power generation capacity of 15 MW. Meanwhile, quite solid a foundation has also been laid for the photovoltaic electricity generation industry.

Though the cost of photovoltaic generated electricity is still higher than coal-generated electricity, it is nevertheless an advantage in remote areas. As it does not incur the cost of fixing power wires in these areas, small solar energy generators are comparably cheaper and more applicable. Herein lies the reason for both the popularity and prosperity of solar cell industry in recent years.

Be it the photovoltaic industry or the solar water heater industry, the future trend will be the development of the technique of integrating solar energy utilization with construction.

The solar energy power generation industry is free from the worries involved in sales. The world solar energy market is obviously a seller's market, where demand is much larger than the supply. It is reported that major Chinese solar energy enterprises including Taiwan's Motech, Wuxi's Suntech Power, Yingli Green Energy and Sunoasis from Xinjiang Uigur Autonomous Region have been running at full capacity, receiving orders that have to be put off well after 2007.

China Leads the Way in Alternative-Energy (Solar) Hardware

Who's the volume dealer in alternative-energy hardware? If you said choking, smoking, coal-toking China, give yourself a carbon credit.

Consider solar cells, the least carbon-intensive option after nuclear, wind, and biomass, according to an analysis by the International Atomic Energy Agency. In 2007, photovoltaic factories in the People's Republic tripled production, grabbing 35 percent of the global market and making China the world's number one producer. How about rechargeable lithium-ion batteries, critical for superefficient electric vehicles? Chinese manufacturers will soon rule that world, too. Windmills? "Prepare for the onslaught of relatively inexpensive Chinese turbines," says Steve Sawyer, head of the Global Wind Energy Council. His forecast: China will produce enough gear to generate 10 gigawatts of power annually by 2010 — more than half the capacity that the whole world installed in 2007.

China has three big reasons for jumping feetfirst into the carbon fight. Obviously, there's the threat of climate change — flooding in China's coastal cities, drought in the country's interior. Second, there's political instability: Air and water pollution is already a flash point for public protests. And then there's the burgeoning export market for green products stamped made in china.

Will renovating the planet spur the first wave of homegrown Chinese tech innovation? Jeff Immelt, CEO of General Electric, thinks so. "China has as much or more at stake than anyone," he said at a recent corporate summit. "Solar energy, carbon sequestration — we're going to be blown away by China's progress over the next couple of decades." If only they could clean up Beijing's air in time for the summer Olympics.

China Solar & Clean Energy, Inc. Announces First Quarter 2008 Financial Results

First Quarter Revenue Increases 177.1% to $8.3 million -- First Quarter Net Income Increases 41.5% to 0.4 million

China Solar & Clean Energy, Inc. (OTC Bulletin Board: CSOL) (''CSOL''), a premier manufacturer and distributor of solar water heaters, renewable energy solutions, and space heating devices in the People's Republic of China (the "PRC"), today announced its results for the first quarter of 2008 which ended March 31, 2008.

Sales for the first quarter of 2008 increased 177.1% to $8.3 million compared to $3 million for the same quarter in 2007. The significant increase was primarily due to the increase in higher margin products such as energy saving projects and heat pipe related products from the acquisition of Tianjin Huaneng which contributed approximately $5.5 million in revenues for the first quarter versus none in the year ago period. Solar Heater and Boiler division contributed $2.8 million, a decrease of 5.5%, from approximately $3 million in first quarter 2007, which resulted from lower sales volume and prices caused by increased competition and Chinese New Year Holiday. Shenzhen Pengsangpu did not contribute as the effective acquisition date was April 1, 2008.

Gross profit for the three months ended March 31, 2008 was $2.5 million, an increase of approximately 228.7% from the first quarter of 2007. Gross margins were 29.6% compared to 24.9% for the first quarter of 2008 and 2007 respectively. The improvement was a result of product and systems sales related to the acquisition of Tianjin Huaneng.

Operating expenses for the three months ended March 31, 2008 increased 164.8% to $1.3 million from $0.4 million in the same period in 2007, while selling, general and administration expenses for the period increased to approximately $1.1 million from approximately $0.44 million in the first quarter of 2007. The increase was primarily due to expenses directly related to Tianjin Huaneng which were not present in the first quarter of 2007, in addition to increased expenses for overall marketing, which includes costs for advertisement, promotion and sales force related expenses.

Operating income for the first quarter of 2008 totaled $1.2 million compared to $0.3 million for the same period in 2007, representing a 339.2% increase. Operating margins were 14.5% and 9.1% for the first quarter of 2008 and 2007, respectively. Taxes paid during the quarter were $0.34 million compared to none in the year ago period. The company paid $0.5 million in minority interests to the 49% owners of Tianjin Huaneng Energy Equipment Company which was not present in the first quarter of 2007. Net income for the 2008 first quarter increased 41.5% to $0.4 million, representing earnings of $.03 per diluted share, from $0.3 million in net income, or $.04 per diluted share during the first quarter of 2007. Calculations were based utilizing 15.3 million and 7.0 million diluted shares outstanding respectively.

During the quarter, the Company issued approximately 4.7 million shares of common stock at a purchase price of $2.40 per share, for gross proceeds of approximately $11.3 million. Additionally, the Company deposited 2 million shares of common stock (''Make Good Shares'') into escrow account for its Make Good Targets of $4.8 million and $8 million in after-tax net income for 2008 and 2009, respectively.

''We are pleased with our results despite the typical seasonal softness due to the Chinese New Year and extremely cold weather. Demand for Tianjin Huaneng energy saving equipment continued to be robust and was the principal driver in helping us achieve a 177.1% increase in revenues,'' commented Mr. Deli Du, President and Chief Executive Officer. ''During the quarter, we made further investments in marketing and advertising which have enabled us to gain additional market share, while helping to propagate our brand recognition which we believe will facilitate future growth. While our margins continue to be impacted by competition and pricing pressure in our core solar hot water heater market, our emphasis on Tianjin Huaneng's high margin proprietary energy saving boilers and environmental protection equipment has improved the Company's overall profitability. In addition, our new flat plate collector production line is fully online, something which we believe will further improve our margins and profitability through enhanced production efficiencies,'' continued Mr. Du.

Balance Sheet and Cash Flow Discussion

The Company had $10.7 million and $5.5 million in cash and equivalents as of March 31, 2008 and December 31, 2007 respectively. The increase in cash was primarily due to the receipt of net proceeds of approximately $10 million from the private placement in March. Inventory increased to $4.1 million as of March 31, 2008, from $3.9 million on December 31, 2007, principally due to increased production preparing for peak season in second quarter. Accounts receivable decreased slightly to $7.1 million as of March 31, 2008, from $7.5 million as of December 31, 2008 due to the improved collection efforts.

''We expect the acquisition of Shenzhen PengSangPu, which had an effective acquisition date of March 31, 2008, will be a significant growth driver for the balance of this year as contributions begin during the second quarter of 2008. PengSang's proprietary products, engineering expertise and strong customer base, which includes larger commercial and government buildings, will create a number of synergies while complementing our core product portfolio and extending our footprint into the coveted Southern China market. The acquisition was completed for an estimated aggregate purchase price of $7.0 million in cash and stock and make good provisions were a component.''

''I would like to use this opportunity to welcome Mr. Jacky Yang who recently joined China Solar as the acting CFO. He brings extensive corporate finance experience in several industries and will be asset as we continue to grow our business. Additionally, I want to add that the recent earthquake which hit the Sichuan Province is not anticipated to affect our production or sales during 2008,'' Mr. Du concluded.

About China Solar & Clean Energy Solutions, Inc.

China Solar & Clean Energy Solutions, Inc. operates through its wholly owned subsidiaries Bazhou Deli Solar Energy Heating Co. Ltd. ("Deli Solar (Bazhou)"), Beijing Deli Solar Technology Development Co., Ltd. and its 51% ownership in Tianjin Huaneng Group, all located in the PRC. The Company manufactures and distributes hot water and space heating devices to customers in the PRC, in addition to waste heat recovery systems. For more information, please visit http://www.cn-sce.com .

Green Energy to progress with solar wafer plant investment in China

Green Energy Technology will soon host a shareholders meeting to discuss its investment plans in China. If shareholders approve, the solar wafer maker is likely to establish a plant at Shangdong, China, according to industry sources.

Green Energy will hold a shareholders meeting on May 16 to discuss its future deployment in China. Company president Hurlon Lin indicated that the company will likely be more aggressive in making investments across the strait after the meeting, but declined to reveal more details.

Green Energy has spent about a year assessing potential investment opportunities in various cities in China, including Shangdong, Shanghai and Jinzhou, with Shangdong as the most likely location, according to industry sources. It is believed that Green Energy to start with solar ingot slicing before investing in ingot production, since the company is short of ingot slicing capacity. Currently about 30-40% of its solar wafer slicing work is outsourced to third parties, the sources explained. They added in saying that Green Energy is experienced in ingot slicing, with gross margin from the segment stable at 30-35%.

Industry players generally feel Green Energy has chosen a good time to extend into China as the China government is offering favorable incentives to investors in order to aggressively grow the country's solar industry.

China has become the world's 3rd largest country in terms of solar cell output and production capacity

China has become the world's 3rd largest country in terms of solar cell output and production capacity

In 2007, solar heater output and population both grew steadily. Meanwhile, China's solar energy photovoltaic industry also continued its fast growth of 2006.

After 20 years of development, the solar heaters industry has entered a mature stage. But, the domestic and international demand has not been met. With the fast growth of the real estate industry in the past few years and breakthroughs in integrated buildings and solar heat technologies, the industry is expected to maintain its current momentum of stable growth.

In the solar photovoltaic generation field, China has become the world's 3rd largest country in terms of solar cell output and production capacity. There is a trend of shift to China of the various links of the industry, from multiple crystal silicon to solar cell components. Growth in investment and financing has reached a crazy level.

In the face of competitions as well as market changes and challenges, the 2007-2008 Annual Report on the Development of China's Solar Energy Industry released by our team will help enterprises, investors and industry persons to more accurately grasp the growth pattern of China's solar energy industry, gain a more profound understanding of the prospects for industry growth and make wise investment decisions-

More in-depth and detailed analysis of industry situation. Based on statistics on the Chinese and international solar energy industry and from the aspects of industrial environment, industry size, industry structure and profit level, our team performs an in-depth analysis of the development situation and basic characteristics of China's solar energy industry. It also provide a key introduction to major countries of solar energy applications (Germany, Japan and USA) and to major regions of solar energy applications in China (Beijing, Tibet, Guangdong and Jiangsu), thus presenting readers with the basic infromaiton of he solar energy industry.

More scientific and comprehensive forecast for future growth. Based on an in-depth analysis of current industry situation and through research on various factors affecting the industry (relevant policies and application conditions for solar energy), future room for industry growth, technology evolution and innovation ability, our team makes scientific and reliable forecast and quantitative analysis of the future trend of the solar energy industry.

More scientific and comprehensive recommendations for industry investment. Based on an analysis of the current status of applications in the solar energy industry and relevant policies, our team makes recommendations to the government. Through analyzing the competition pattern, technology development directions and imports and exports in China's solar energy industry, our team also makes recommendations to manufacturers. In relation to the current status of investment in China's solar energy industry and its forecast for future room for industry growth, our team finally offers recommendations to investors.

China's Solar Stocks Soar

Chinese solar stocks spiked on higher-than-average volume today following earnings announcements from many industry players. JA Solar Holdings (NDAQ: JASO), China Sunergy Company (NDAQ: CSUN), ReneSola (NYSE:SOL), and Trina Solar (NYSE: TSL) are just four Chinese solar companies that rose today as several companies reported strong earnings.

Solar companies are experiencing strong growth as the move towards alternative energies continues. Companies in the United States have soared to stratospheric valuations amid the boom, but investors are just now discovering the opportunities abroad. Chinese solar manufacturers make sense to investors for several reasons.

The "Made in China" label appears on many goods in the United States simply because their products are cheaper. The costs of building almost anything in China is lower because labor is cheap and materials have reached economies of scale. Many Chinese firms are now jumping on the solar bandwagon now too.

Chinese solar manufacturers are much cheaper than their western counterparts too. Companies like Trina Solar and ReneSola are trading at just 30x earnings compared to U.S. companies like SunPower Corporation (NDAQ: SPWR) and First Solar, Inc. (NDAQ: FSLR) that trade with a multiple closer to 361x and 117x, respectively.

These U.S. players may be involved integrated manufacturers and utilize newer technologies, but Chinese companies have a habit of quickly copying the competition. Ultimately, the lower costs of Chinese solar technologies will eclipse that of American firms and take at least some market share away.

In the end, Chinese solar stocks represent a great alternative for U.S. investors looking for something cheaper. The growth rates for these firms should continue to rise along with solar demand while they will likely increase their market share as more and more domestic solar vendors choose the cheaper Chinese alternatives.

Hoku(U.S.) and Suntech(China) Announce Amended Polysilicon Supply Contract - Solar

Hoku(U.S.) and Suntech(China) Announce Amended Polysilicon Supply Contract - Solar

Term Fixed at 10 Years; Financing Deadline Extended to December 31, 2008

Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. established to manufacture and sell polysilicon for the solar market, and Suntech Power Holdings Co., Ltd. one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that they have amended their polysilicon supply contract to confirm the ten-year term of the contract, which was previously subject to a mutual right for either party to unilaterally reduce the term to seven years. In addition, pursuant to the amendment, Hoku Materials has been granted a right of first refusal to deliver all or any portion of the polysilicon in the form of wafers on commercial terms that are no less favorable to Suntech than it would otherwise be able to obtain. Total amounts that may be payable to Hoku Materials under the ten-year term of the contract are approximately $678 million, plus amounts payable for excess shipments that may be delivered in calendar year 2009.

Suntech and Hoku Materials further agreed to extend the date when either party may terminate the supply agreement if Hoku Materials is unable to complete the financing for its polysilicon production plant until December 31, 2008, and to reduce the financing milestone to $75 million, including the $25 million that was already raised by Hoku Scientific's sale of common stock in February 2008. Prior to the amendment, either Hoku Materials or Suntech had the right to terminate the supply agreement if Hoku Materials was unable to secure an aggregate of $100 million on or before May 31, 2008, to finance the procurement and construction of its planned polysilicon plant in Pocatello, Idaho.

Suntech also agreed to use its best efforts to obtain trichlorosilane, or TCS, in 2008 and 2009 for Hoku Materials's use at its production facility. Hoku Materials plans to build on-site TCS production facilities as part of its polysilicon plant, which are expected to be complete in 2009; however, until Hoku Materials's TCS plant is complete, TCS from a third party will enable the commencement of production faster than otherwise possible. If Suntech is able to obtain TCS for Hoku Materials, then Hoku Materials will allocate to Suntech additional polysilicon production output in 2009 that is in excess of Hoku Materials's pre-existing 2009 customer commitments.
"These amendments reflect our mutual commitment to strengthening the long-term relationship between Hoku and Suntech," said Dustin Shindo, Chairman and Chief Executive Officer of Hoku Scientific. "Locking-in the term at 10 years gives us greater certainty in planning our long-term operations, while Suntech's commitment to help us obtain TCS in 2008 and 2009 could improve our near-term operating results. Allowing us a right of first refusal to deliver wafers gives us the flexibility to vertically integrate a downstream process if we decide to pursue that strategy in the future."

Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "Hoku has made tremendous progress over the past year, and we are pleased to strengthen our relationship with them. Confirming the term at ten years gives Suntech more visibility on long-term polysilicon pricing that will further our goal of achieving grid parity in solar."

2007 PV Solar Figures Reviewed: PV production in China grew rapidly

Global production of photovoltaic (PV) solar cells increased 51% in 2007 to 3,733 megawatts, according to a review of industry figures by WorldWatch Institute.

Other highlights include:

- Led by Germany's Q-Cells AG (QCE.DE), Europe surpassed Japan in volume of PV manufacturing.
- Fueled by a generous feed-in tariff, Germany remained the top installer of PV, accounting for roughly half the global market. Spain ranked second
- PV production in China grew rapidly, making the country the second largest producer, accounting for 22% of global production.
- PV cell production rose 48% in the U.S. to a total of 266 MW--representing only 7% of global supply.
- Italy, France, Portugal, South Korea and India are emerging on the international solar market.
- Forecasts for the year ahead are centered around an increasing polysilicon supply, expected to become available in the third quarter, and analysts are predicting price parity with conventional power in two to seven years.

Yingli(China)Green Energy Signs Sales Contract with IBC(Bavaria) Solar AG

Yingli (China) Green Energy Holding Company Limited (NYSE: YGE) (“Yingli Green Energy” or the “Company”), one of the world's leading vertically integrated photovoltaic (“PV”) product manufacturers, today announced that it has entered into a sales contract with IBC Solar AG (“IBC”), one of the leading specialists in PV systems worldwide. Under the terms of the contract, Yingli Green Energy is expected to supply a minimum of 35 MW of PV modules to IBC from May 2008 to December 2008. In addition, IBC has an option to purchase a maximum of another 45 MW of PV modules from Yingli Green Energy in 2009.

“I believe this contract will further support the cooperation and deepen the relationship between our two companies,” commented Thomas C. Sauer, CEO of IBC. “Yingli Green Energy’s top quality products, brand name and solid track record have been a major reason behind our purchases from them in the past, and now we are pleased to significantly expand our relationship in the future.”

“I am very pleased to announce this important contract which represents another milestone in our ongoing relationship with IBC,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “I believe this sales contract marks our continued success in expanding in Germany, which is one of the most important PV markets in the world, and further demonstrates that our product quality and brand name have been recognized by one of the leading PV system specialists in the market. In addition, IBC’s broad reach makes them a particularly desirable partner. We remain deeply committed to solidifying our established customer relationships and we continue our efforts to promote our quality products and brand name to both existing and potential customers. I believe our efforts will further strengthen our position as one of the world’s leading vertically integrated PV product manufacturers.”

About IBC SOLAR AG

IBC SOLAR AG was founded in 1982 and since then has been active exclusively in the photovoltaic sector. Headquartered in Bavaria, the company was recognised as one of the 50 fastest growing companies in Bavaria in 2006. The IBC group and its subsidiaries in Europe, Asia and America provide markets worldwide with high performance photovoltaic systems of all sizes, from house roofs to major turnkey solar projects.

About Yingli Green Energy

Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of the limited numbers of large-scale PV companies in the world to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States. For more information, please visit www.yinglisolar.com.

The First solar PV building in China

The main structure of the 25-storeyed mansion, China's first solar PV building, was lately completed in the city of Baoding in China's northern Hebei Province.

The building will serve as a landmark for the country's new energy and energy equipment industry base. By applying large-sized breathable glass screen to its outside appearance, the building can generate 0.3 megavolts of electricity, tantamount to a mini-sized power plant, which will not only satisfy the needs of electric lighting for the building, but can be annexed with the power grid for electricity generation.

http://www.solarfromchina.com

U.S. chemical maker DuPont plans China facilities for solar energy

DuPont Co (U.S. chemical maker) said on Tuesday it plans to open a research and development center and a manufacturing facility in China to cater to the growing demands of the solar energy industry.

The research and development facility will be based in Hong Kong, while the plant will be in Shenzhen.

The company expects growth in the photovoltaic market to exceed 30 percent each year over the next several years. DuPont has made significant investments in product development and capacity expansions to help keep pace.

The R&D center will likely begin operations in 2009. There is no set date for the opening of the Shenzhen plant.

The expansions in Hong Kong and Shenzhen will provide new offerings to serve the amorphous silicon thin film market. These thin films are used in the production of photovoltaic modules.

"DuPont is accelerating its ability to deliver innovations that will improve the lifetime and efficiency of photovoltaic modules," said David Miller, group vice president of DuPont's electronic & communication technologies segment.

In a statement, Miller said the facilities will also help the company keep pace with the fast-rising global demand from the sector.

DuPont also announced it plans to invest about $150 million to expand and upgrade its facilities that manufacture ethylene copolymers used by the packaging, automotive and solar cell industries.

from http://www.solarfromchina.com

Solar Power Industry in China

In 2007 Shandong Province established a 2.133 billion Yuan fund to support energy conservation and reduction of emissions. From that fund the provincial government will allocate funds to subsidize hotels, schools and other establishments to build solar hot water supply systems. Shandong Province now has more than 100 companies that are involved with renewable energy and those companies produce more than 3 billion Yuan/annum in revenue. To date a total of 15 million square meters of buildings have a solar hot water heating system.

In remarks made on September 18, 2007 at the “2007 World Solar Energy Conference”, Shi Dinghuan, the Chairman of the China Renewable Energy Institute and a member of the Counselor’s Office of the State Council, said that after 2020 China will experience scale development of solar power. Nearly 1000 individuals from more than sixty countries attended the conference. In his remarks Mr. Shi called on greater cooperation between developed countries and developing countries, especially in the realm of technology transfer of key renewable energy technologies.

Construction began on August 18, 2007 on a 12 billion Yuan, 15,000 MT solar energy grade silicon project in Xinyu city, Jiangxi Province. The first phase of the project, which will total 6000 MT of polycrystalline silicon materials, is expected to be completed and in operation by the end of 2008; the entire project will be open by 2009. The project is being developed by Jiangxi Saiwei LDK Solar Energy High Technology Co., Ltd., which went public on the NYSE on June 1, 2007, raising $469 million U.S.D.

According to Shi Dinghuan, the chairman of the board of the China Renewable Energy Society, solar hot water appliances already cover 90 million square meters of buildings in China and serve 40 million households and 200 million people. China is now the world’s largest producer and user of solar hot water appliances.

On August 8, 2007 the 200 million Yuan, 25MW solar cells project of the Tri-crystalline Silicon Products Manufacturing Co., Ltd. formally set up in Quanzhou, Fujian Province. The project will be manufacturing mono-crystalline solar cells by 2008.

In early August 2007 a group of Chinese solar module manufacturers were having preliminary discussions regarding forming a national photovoltaic industry alliance. The motivation for the discussions included the desire to contain what was referred to as “disorderly, pernicious competition” among companies in the solar energy module industry. The background to these discussions is the rapid growth of the domestic solar industry in China over the past 1-2 years, fueled by a great deal of capital which perceived a new market opportunity. Being near the tail end of the solar industry production chain, the solar module industry doesn’t have a great deal of technology that it contributes, which means that there are fewer barriers to entry than in the solar cells or silicon industries. According to one industry insider by the end of 2006 there were approximately 200 solar module manufacturers in China and because there is a lot of capital that is available and which likes this sector, there will be another increase in the number of solar module manufacturers in China in 2007. Solar module manufacturers are competing to increase the scale of their operations to reduce costs; in this manner they see the way to overcome the price competition which has ensued as a consequence of so many new entrants into the industry. One example is the Wuxi (Jiangsu Province) Guofei Green Energy Co., Ltd. which had 10MW of capacity in 2006, which will increase to 30MW in 2007 and further increase to 40-50MW in 2008; the company is increasing capacity despite the fact that it sold only 6MW of solar modules in 2006. The price of modules has declined over the past two years. In 2005 the price was $35 U.S.D. to $38 U.S.D. per watt; as of the beginning of 2007 the price had dropped to $32 U.S.D. per watt and it is expected that the price will drop again by the end of 2007 to $30 U.S.D. per watt. Consequently, gross profits at most profitable solar module manufacturers are only 10%. The solar cell manufacturers, which are the upstream suppliers of the solar module industry, are also experiencing an increase in production capacity and fairly robust competition. The suppliers of the solar cell manufacturers, which are the polycrystalline silicon manufacturers, are not reducing prices as the supply of silicon is insufficient at present to address the current demand; the U.S. and Japan are the principal suppliers of polycrystalline silicon. One such example of a solar cell manufacturer is the China Power (Nanjing) Photovoltaic Co., Ltd., which went public on NASDAQ in May 2007. Beginning in August 2004 when the company started-up it had five production lines producing solar cells. By the end of 2006 the company had 6 production lines producing a total of 192MW of solar cells; by the end of 2008 the company expects to have expanded further to a total of 12 production lines and be producing 390MW of solar cells. Industry experts believe that the solar module manufacturers will have their toughest time in 2008. By 2009 the price of polycrystalline silicon will have moderated somewhat and by 2010 as China’s output of polycrystalline silicon grows the price will decrease further. By 2010 China’s domestic polycrystalline silicon output capacity will reach 60,000 to 100,000 tpy and international suppliers will provide another 100,000 tpy; in 2010 the demand for polycrystalline silicon will be only 100,000 tpy.

GT Solar Incorporated of Merrimack, New Hampshire entered into a $171 million U.S.D. supply agreement with Glory Silicon Energy Co., Ltd. of Zhenjiang, Jiangsu Province to sell its DSS450 furnaces for the production of multi-crystalline silicon ingots. This order will equip what will be one of the world’s largest silicon wafer factories, having approximately 1500MW per annum of capacity.

More than 90% of regions in China enjoy as much as 4500 mega-joules per square meter of irradiation from the sun. More than 2/3rd of China’s regions have in excess of 2200 hours/year of the sun’s exposure. If only 1% of the sun’s exposure on China were converted into power, all of China’s energy requirements for the year would be satisfied.