Evergreen Solar’s EverQ Partnership to Increase Solar Module Production to 300MW by 2010
Evergreen Solar, Inc. announced the signing of a previously announced polysilicon supply agreement that will be sufficient to allow its EverQ partnership to increase solar module production capacity from about 30MW this year to approximately 300MW by 2010 and possibly as early as the second half of 2009.
In conjunction with the execution of the supply agreement, which is expected to become effective early in the fourth quarter following regulatory approval, Evergreen Solar,Q-Cells AG of Germany and Renewable Energy Corp. (REC) of Norway will become equal partners in EverQ.
In accordance with the terms of the supply agreement, REC has agreed to supply EverQ with a total of 7,400 metric tons of granular polysilicon over seven years beginning in 2008. Shipments of approximately 400 metric tons are expected to begin in the second half of 2008 and increase to 1,200 metric tons annually by 2010, continuing through 2014. These shipments are in addition to the 190 metric tons REC is currently supplying EverQ annually under an existing arrangement.
The EverQ partners are in the process of finalizing previously announced interim polysilicon supply guarantees, which will facilitate the next phase of expansion of EverQ's facility in Thalheim, Germany. Under the terms of these proposed agreements, Q-Cells and REC will each provide up to 150 metric tons of polysilicon, at near-term market pricing, to EverQ as required from mid 2007 to mid 2008, which will enable EverQ to accelerate production at its next factory.
In addition, Evergreen Solar has entered into an amended license and technology transfer agreement with EverQ. Pursuant to this agreement, Evergreen Solar will license to EverQ certain of its proprietary technologies necessary for the manufacture of EverQ's solar modules. Evergreen Solar and EverQ have also entered into a sales representative agreement pursuant to which Evergreen Solar will continue to market and sell modules manufactured by EverQ.
