Solar Millennium AG and solarhybrid AG conditionally agree on sale of power plant projects in the US
Erlangen/Brilon, 6 October 2011 Solar Millennium AG, Erlangen and solarhybrid AG, Brilon will pave the way for the construction of major solar power plants in the US starting in 2013. In the evening from Wednesday to Thursday, the companies conditionally agreed that solarhybrid will take over Solar Millennium’s 2.25 gigawatt 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 state-of-the-art photovoltaic technology. The agreement stipulates that Solar Millennium AG will receive a significant profit-share upon construction of the power plants in the US 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 US, 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 US 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 US 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.
About Solar Millennium AG:
Solar Millennium AG (ISIN DE0007218406), Erlangen, is a company that operates globally in the renewable energy sector, with its main focus on solar power plants. Together with its subsidiaries and associates, the Company specializes in solar-thermal power plants, particularly parabolic trough plants, and has taken a global leadership position in this field.
Solar Millennium is striving to further extend its expertise in this area with the aim of achieving and securing sustainable technology leadership. The Company covers all important business sectors along the value chain for solar power plants: from project development and financing to technology and the turnkey construction and operation of power plants. Solar Millennium realized Europe’s first parabolic trough power plants in Spain as well as the first modern parabolic trough solar field in Egypt. Additional projects are planned around the world with a total capacity of several thousand megawatts. The current regional focus is on Spain, the Middle East and North Africa.
About solarhybrid AG:
is project developer and general contractor for turn-key photovoltaic power
projects at utility scale. The company offers the following services:
- Project development and co-development
- Financing and structuring
- Sale to investors
- Engineering, procurement, and construction services (EPC contracting)
- Operation and Maintenance
solarhybrid capital management 100% subsidiary of solarhybrid AG arranges project finance, investment structures and sales. A track record of more than 267 MWp of projects under construction or in operation confirm solarhybrid‘s technical, organizational, and financial expertise. Projects in excess of 123 MWp capacity will be contracted shortly. Solarhybrid’s project pipeline comprises a total capacity of 2.5 GWp. The offices of solarhybrid in Germany are in Brilon, Hamburg, Frankfurt, international offices are in Italy, Middle East, and US. The shares of solarhybrid are traded in the open market at Frankfurt stock exchange. Further information on solarhybrid AG can be obtained on the internet at www.solarhybrid.ag