Høvik, August 28, 2007. REC today entered into an agreement to build and own a 2.5 MW solar power plant in South Korea.
Through its REC Solar division and its 60 percent owned subsidiary HanBit Solar Co. Ltd. (HanBit), REC today entered into an agreement with Daegu City in South Korea to build and own a 2.5 MW solar power plant, which will produce some 3 million kWh of clean energy per year.
"South Korea has ambitious goals for solar power and an attractive subsidy regime for the PV industry, and offers a promising new market for our REC Solar division", says Erik Thorsen, President & CEO.
The power plant will be installed on top a water treatment facility in Daegu City and will contain around 11,000 REC Solar modules. Total investments will amount to slightly more than EUR 10 million. HanBit will enter into the necessary contracts for design and construction of the plant over the coming months.
It is assumed that the project qualify for CDM credits (Clean Development Mechanism), allowing for trading of CERs (Certified Emission Reductions) under the Kyoto Protocol. HanBit expects to own the power plant for up to 15 years before it is handed over to Daegu City. HanBit is 60 percent owned by REC and 40 percent by a local partner.
"We are currently exploring various ways of building robust and profitable market channels that can support our increasing downstream activities, and this project will be an important step in that direction. It will also allow us to integrate the entire value chain from polysilicon production all the way to electricity generation", says Erik Thorsen, President & CEO.
"The support from Daegu City has been crucial in enabling this project. We are very pleased with the project development, and look forward to a continued mutually beneficial relationship", says John Andersen Jr., Executive Vice President Solar.
REC is uniquely positioned in the solar energy industry as the only company with a presence across the entire value chain. REC Silicon and REC Wafer are the world's largest producers of polysilicon and wafers for solar applications. REC Solar produces solar cells and solar modules. REC Group had revenues in 2006 of NOK 4,334 million and an operating profit of NOK 1,574 million. Please also see www.recgroup.com
For further information please contact:
Jon Andre Løkke, SVP & IRO; +47 67 81 52 65