Norwegian solar panel firm to build Quebec plant

Norwegian solar panel firm to build Quebec plant

US$1.2 billion investment will create 300 jobs

by Canadian Press

August 28, 2008, MONTREAL

Quebec’s cheap energy is luring Norwegian solar panel company Renewable Energy Corp. to invest more than US$1.2 billion to build a silicon materials plant in Becancour that will create at least 300 jobs.

The province has agreed to supply 95 megawatts of electricity for 20 years at the “competitive industrial rate” that is available for more than 200 major industrial companies.

“It’s what makes Quebec attractive in terms of investment,” Premier Jean Charest said during a news conference in Becancour, southeast of Trois-Riviéres.

Low corporate income taxes, strong research and development along with skilled labour are also key factors in luring a company that is planning to make one of the largest private investments in the province in a decade.

“For us this is a first major step in an area where we want to intensify and develop our capacity as a place in the world that is renowned for clean, renewable energy.”

The project reinforces the Liberal government’s 2006 energy policy, which Charest said is also an economic policy, to leverage the province’s clean energy and show that sustainable development is synonymous with wealth creation.

The head of the Norwegian company said using non-carbon based renewable energy was key to its decision to locate in Becancour as it attempts to limit the environmental impact of producing solar cells and panels.

“Our operation in Becancour could be very significant and this site has the potential to support our proposed growth plans for quite some time in the future,” CEO Erik Thorsen said.

Construction of the plant is expected to start in 2010, with production of the raw material used to manufacture semiconductors and solar panels.

A total of 13,000 tonnes of polycrystalline silicon will be produced annually at the site, which represents nearly one third of the global production of 45,000 tonnes. Some of the material will be used by an existing company in Becancour.

The project is expected to generate more than $100 million in annual economic spinoff and nearly $20 million in tax revenues per year.

Emploi-Quebec is providing a $4 million grant for 25 per cent of the training costs for three years.

Plant construction of the first phase of two plants will employ more than 1,000 people. Four production units could eventually be constructed of similar size as REC’s factory being built in Moses Lake, Wash.

Thorsen wouldn’t rule out eventually fabricating solar panels at the Quebec location.

The site is located near the Gentilly nuclear power plant, which the government recently said would get $1.9 billion for an upgrade and expansion.

The location was selected following a 17-month review in which 100 sites were considered in 16 countries.

Toronto-based Timminco Ltd. is also building a plant in Becancour to manufacture solar-grade silicon.

(via.  Daily Commercial News)