MBM Holdings has announced the formation of MBM Solar Holding Inc., which plans to build a solar-grade polysilicon plant in the UAE.
The plant will have a total capacity of 2,500 tons per annum and is expected to start production in early 2012. The project is being sponsored by MBM Holdings and will be developed jointly with ERC Private Limited Singapore which has experience in developing similar plants. Currently MBM is in negotiations with local authorities for land and power for the $400 million project.
MBM said plant the will produce polysilicon at prices competitive to Chinese or Middle East plants being planned. (First Energy Bank is building a polysilicon production plant in Saudi Arabia that is expected to to begin production in 2013).
The plant is likely to be the first to produce polysilicon in the Middle East. Utilizing ERC’s existing designs is expectec to shave off at least 18 months from typical project lead-time.
The project will be constructed in total area of approximately 250,000 square meters in a yet to be decided location. MBM Holdings will soon give out a mandate to an Investment Bank to seek the residual parts of equity and debt for the project. The feasibility study has been conducted and the project engineering partners have been identified.
Mr. Kassym Abzhanov, Director of ERC said the project will be the bank’s first major strategic initiative in renewable sector.
The development of the MBM Polysilicon project is in line with the Dubai government’s economic diversification strategy and its thrust on alternative energy. It also supports the UAE’s industrial base expansion plans with the anticipated development of the downstream sector of the solar energy chain.