The lack of a federal or state government funding scheme to support the development of a manufacturing facility to produce silicon wafers has resulted in South Perth-based Prime Solar Pty Ltd looking overseas to develop.
The lack of a federal or state government funding scheme to support the development of a manufacturing facility to produce silicon wafers has resulted in South Perth-based Prime Solar Pty Ltd looking overseas to develop.
The Perth-based company is in the midst of raising capital for the first phase of the facility.
However, rather than developing the facility in Western Australia, the company has chosen the Micro Technology Park at Thalheim, Germany’s “Solar Valley” approximately 50km north of Leipzig.
Prime Solar managing director and CEO Dr Dilawar Singh said the company had received more support from the German government to set up the facility.
“The reason for setting up our facility in Germany is the availability of up to 45 per cent in non-refundable German government grants, a subsidised well developed project site and other supports,” Dr Singh said.
“Although there are some schemes for providing incentives for research and development and installation of a solar system on the roofs in Australia, neither the federal government nor the Western Australian government have any funding scheme which can support the manufacturing of the facility.”
Dr Singh told WA Business News the first phase of the project would be to produce 50 MW per annum capacity.
“The first phase of the project will cost €36.5 million ($A59.8 million),” he said. “Of that, €10 million ($A16 million) will come from private equity, the German government will put in €12.5 million ($A20.5 million) in non-refundable grants and €14 million ($A23 million) will come from bank finance.”
Dr Singh said production would commence in the third quarter of 2007.
In its release, the company said negotiations were taking place with Commerzbank for debt funding and working capital.
The facility, once completed, will produce 680 MW per annum with an estimated project cost of $700 million and offer more than 1,000 full time employment opportunities.
The wafers produced by Prime Solar will be used in the manufacturing of silicon solar cells by Q-Cells of Germany.
Prime Solar has recently entered into an agreement with Q-Cells to supply up to 100 per cent of its wafer production for 10 years. Q-Cells is the world’s second largest manufacturer of mono and multicrystalline solar cells.
As has been recently reported in WA Business News, Prime Solar’s subsidiary company, Prime Solar Power Pty Ltd, has commenced work to undertake a 2 MW fringe-of-the-grid project at Perenjori, 35km north of Perth and another 10 MW Solar Park project at Perth.
The subsidiary company was established in February this year.