First Solar Announces Expansion with Solar Module Supply Agreements Totaling $1.28 Billion
Phoenix, July 9, 2007
685 Megawatts of Additional Long Term Module Supply Agreements Totaling $1.28 Billion;
120 Megawatt Annual Nameplate Production Capacity Expansion
Source: First Solar Inc. /press release
http://investor.firstsolar.com/releasedetail.cfm?ReleaseID=252638
First Solar, Inc. (Nasdaq:FSLR) announced today that it has entered into five agreements for the manufacture and sale of solar modules totaling 685 Megawatts. These new agreements are expected to allow for sales of approximately $1.28 billion at an assumed exchange rate of $1.30/EUR1.00, over the period of 2007 to 2012. Included in the new agreements are long term agreements with EDF Energies Nouvelles (EDF EN), a renewable energy producer specializing in wind, hydro, biomass, and solar power plants; and Sechilienne-Sidec, a renewable energy producer specializing in thermal, wind, and solar power plants. As part of the new contract volumes announced today, First Solar and the Juwi Group have also agreed to increase volumes under an existing long term supply agreement. These customers are targeting development of solar projects with First Solar modules in Spain, Italy, France, Greece and Portugal. Also included in the new agreements is a long term agreement with RIO Energie GmbH & Co. KG, a joint venture of the Stadtwerke Mainz AG utility company and the Juwi Group with a focus on the development of solar power plants in the utility service region of the Stadtwerke Mainz AG and its subsidiaries through 2012. These new long term agreements are structured on terms similar to First Solar’s existing long term supply contracts.
“These contracts signal a major expansion into the solar market by leading energy firms with significant resources and capabilities and will accelerate the continuing evolution of the solar industry,” said Mike Ahearn, First Solar’s chief executive officer. “We now have an expanded group of highly capable market partners developing large ground and roof mounted projects throughout Europe under long term agreements. We believe these relationships validate First Solar’s leadership in serving utility scale project developers and operators of solar power plants, diversify our revenues across Europe, and provide revenue visibility to support production capacity expansion.”
Also included in the new sales contracts announced by First Solar is a multi-year agreement with SunEdison, LLC, a leading provider of solar generated electricity to commercial, municipal, and utility customers in North America. SunEdison will deploy First Solar modules in Ontario, Canada, which has adopted a feed-in tariff for solar energy. “We are pleased to form a relationship with SunEdison and look forward to working with them to implement solar projects in Ontario,” stated Mike Ahearn.
First Solar also announced that its board of directors has approved the construction of an additional manufacturing plant in Malaysia with an annual production nameplate rating of 120 Megawatts, representing an investment of approximately $150 million. The additional production capacity of the new plant is scheduled to come on line in the first half of 2009.
About First Solar
First Solar, Inc. (Nasdaq:FSLR) manufactures solar modules with an advanced thin film semiconductor process that significantly lowers solar electricity costs. By enabling clean renewable electricity at affordable prices, First Solar provides an economic alternative to peak conventional electricity and the related fossil fuel dependence, greenhouse gas emissions and peak time grid constraints. For more information about First Solar, please visit www.firstsolar.com.