Solar Millennium AG, Erlangen and solarhybrid AG, Brilon will pave the way for the construction of major solar power plants in the U.S. starting in 2013. In the evening from Wednesday to Thursday, the companies conditionally agreed that solarhybrid will take over Solar Millennium’s 2.25 GW project portfolio in the American Southwest and use the location to build solar power plants in order to generate electricity for millions of people using PV technology. The agreement stipulates that Solar Millennium AG will receive a significant profit-share upon construction of the power plants in the U.S. in addition to being reimbursed its entire investment in the projects.
Both companies expect the negotiations to be successfully concluded in October 2011. solarhybrid has already paid the first installments on the purchase price. The transaction is subject to another positive due-diligence assessment by solarhybrid. It is possible that other industry partners will be included in the project. The companies have agreed to keep the details of the transaction confidential. solarhybrid AG expects to execute the transaction through its wholly-owned subsidiary solarhybrid USA LLC, which as the general contractor will take on the engineering, the purchase of components and the construction of the plants (EPC).
solarhybrid USA will use the project development capacities of the Solar Millennium Group as much as possible.
Expansion of the core business
As a result of the agreement, Solar Millennium will focus on realizing new and already planned solar-thermal and hybrid power plants in Europe, Asia, North Africa and Latin America and expand its respective technology platforms. The company just inaugurated the new Andasol 3 solar power plant in Spain together with its partners on Friday. In the U.S., the company will be available as a project partner as soon as the demand for storable solar energy starts growing there once again, with the parabolic trough technology being its specialty.
Dr. Christoph Wolff, CEO of Solar Millennium AG, illustrates: “The agreement on the U.S. projects is not only favorable for Solar Millennium and its shareholders from an economic and strategic point of view. It ensures that our project investments in the U.S. retain their value, adequately involves Solar Millennium in the future earnings of the solar power plants located there and gives the company a clear structure.”
solarhybrid anticipates it could begin construction on the first American project as early as 2013. This will be the 1,000 MW Blythe solar power plant in California.
Supplement to bond 8 on the agenda
The Executive Board of Solar Millennium AG has decided to submit another supplement to the issue prospect of corporate bond 8 on short notice to Germany’s Federal Financial Supervisory Authority (BaFin) against the backdrop of the agreement with solarhybrid AG. The prospect currently in effect had listed the preliminary and interim financing of power plant projects in the US as one of the reasons for offering the bond.
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