Several big deals were announced this week.
Munich, Germany-based chemical group Wacker Chemie AG (WCH.DE) on Thursday announced plans to construct a
new silicon-producing factory in Tennessee
at a cost of about $1 billion. Silicon is the raw material used to make
most photovoltaic solar wafers. The company said it has already
purchased 550 acres in Bradley County, Tennessee for $20 million. A
time frame for construction was not announced, but the new plant is
expected to
create about 500 jobs.
California utility Pacific Gas and Electric Company (PG&E) announced plans for a five-year
program to develop up to 500 megawatts
(MW) of photovoltaic (PV) power
in its northern and central California service area. PG&E is a
subsidiary of PG&E
Corporation (NYSE: PCG). The utility intends to own up to half of the
power generation. This will be the company's first direct investment in
renewable generation in over a
decade. The additional 250 MW will be built and owned by independent
developers under what PG&E called a streamlined regulatory process.
State approval for the plan could come later this year.
New Jersey-based power plant owner NRG Energy, Inc. (NYSE: NRG) has
ventured into solar energy for the first time, signing an agreement
with solar thermal startup eSolar for up to 500 megawatts (MW) of power
production
in Southern California and the Southwest. NRG will invest approximately
$10 million for equity and associated
development rights to develop, build, own and operate 11 concentrating
solar power (CSP) units designed by eSolar. The first plant is
anticipated to begin producing electricity as early as 2011.
In Europe, Swedish energy company Vattenfall (VTT.DE) announced it will purchase Dutch utility Nuon
for EUR 8.5 billion. The companies said in a release that the
acquisition will "boost the transition towards a climate neutral
operation by 2050." The deal does not included Nuon's
grid company Alliander, which recently split into a self-contained
unit. Vattenfall will initially acquire 49% of Nuon's
shares and operational control. Ther remaining shares will be
transitioned over six years.
Also this week, several high-profile renewable energy companies released quarterly and year-end reports for 2008.
Leading geothermal company Ormat Technologies, Inc. (NYSE: ORA) didn't even mention global economic downturn as it announced increased earnings for
the fourth quarter of 2008 and the full year. The company's net income
increased 31.3% to $11.7 million in 4Q and 82.0% for the year to a
total of $49.8 million.
CEO Dita Bronicki said: "The fundamental business of the company is in excellent condition and
the benefits of the new Stimulus Act will further improve our future
results."
Solar superstars Q-Cells (QCE.DE) and First Solar (NASQAQ: FSLR) both reported increased earnings as well, but went to lengths to warn about risks in the year ahead.
Q-Cells increased its net income
for the year by 28% to EUR 190.5 million, while boosting its production
capacity to 570 MW a year. The company expects to raise that capacity
level to close to a gigawatt (GW) by the end of 2009, but lowered sales
expectations for the second time since December.
First Solar doubled year-over-year quarterly profit and revenue, handily beating analysts' expectations.
The company also announced that it reduced production costs to below $1
per watt for the first time. Nonetheless, the company said leaner times
have arrived.
