First Solar today
announced a memorandum of understanding (MOU) with the Chinese government to
build a 2 gigawatt solar power plant in Ordos City, Inner Mongolia, China.
Pursuant to the MOU, signed in the presence of Chairman Wu Bangguo of the
Standing Committee of the National People's Congress of China, the solar project
in Ordos will be built over a multi-year period. Phase 1 will be a 30 megawatt
demonstration project that will begin construction by June 1, 2010 and be completed
as soon thereafter as practicable. Phases 2, 3 and 4 will be 100 megawatts,
870 megawatts, and 1,000 megawatts. Phases 2 and 3 will be completed in 2014
and Phase 4 will be completed by 2019.
"This major commitment to solar power is a direct result of the progressive
energy policies being adopted in China to create a sustainable, long-term market
for solar and a low carbon future for China," First Solar CEO Mike Ahearn
said at the signing ceremony. "We're proud to be announcing this precedent-setting
project today. It represents an encouraging step forward toward the mass-scale
deployment of solar power worldwide to help mitigate climate change concerns."
The project will operate under a feed-in-tariff which will guarantee the pricing
of electricity produced by the power plant over a long-term period.
"The Chinese feed-in tariff will be critical to this project," Ahearn
said. "This type of forward-looking government policy is necessary to create
a strong solar market and facilitate the construction of a project of this size,
which in turn continues to drive the cost of solar electricity closer to ‘grid
parity' - where it is competitive with traditional energy sources."
The MOU contemplates that during the implementation of the initial phases of
the project First Solar will actively review the possibility of module and supplier
manufacturing sites in Ordos, and other considerations required to support a
First Solar investment. First Solar also intends to facilitate expansion of
the supply chains in China for thin film photovoltaic module production and
for the recycling of photovoltaic modules after use.
"We are very pleased to be partnering with one of the solar industry's
global technology leaders in a project of such significance to Ordos's low carbon
future," said Cao Zhichen, vice mayor of Ordos Municipal Government. "Discussions
with First Solar about building a factory in China demonstrate to investors
in China that they can confidently invest in the most advanced technologies
available."
The MOU 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.
For First Solar Investors
This release contains forward-looking statements which are made pursuant to
the safe harbor provisions of Section 21E of the Securities Exchange Act of
1934. The forward-looking statements in this release do not constitute guarantees
of future performance. Those statements involve a number of factors that could
cause actual results to differ materially, including risks associated with the
company's business involving the company's products, their development and distribution,
economic and competitive factors and the company's key strategic relationships
and other risks detailed in the company's filings with the Securities and Exchange
Commission. First Solar assumes no obligation to update any forward-looking
information contained in this press release or with respect to the announcements
described herein.
First Solar has filed a Current Report on Form 8-K with the Securities and
Exchange Commission, dated September 8, 2009, which contains additional information
regarding the Memorandum of Understanding referenced in this news release.
Posted September 10th, 2009
