Nitol Solar delivers initial Polysilicon production volumes to Trina Solar

Trina Solar succeeded in manufacturing monocrystalline solar modules using the Polysilicon.

Per “Nitol Solar Supplies Trina Solar with Initial Deliveries of Polysilicon to Manufacture Solar Modules” released Monday, October 13, 2008, on the eve of Solar Power International 2008:

Trina Solar tested the polysilicon through the entire production process from monocrystalline ingots, wafers and cells to solar modules. The results demonstrated compliance of polysilicon made by Nitol Solar with the modern PV requirements.

Trina Solar Limited (NYSE:TSL) and Nitol Solar Limited entered into a long-term polysilicon supply agreement last year with “Trina Solar Signs Long-Term Supply Agreement with Nitol Group”. Nitol Solar will deliver sufficient Polysilicon in 2009 from their polysilicon plant in Usolie-Sibirskoe, Irkutsk region, Russia, for Trina Solar to produce over 200 MW (MegaWatts) of solar modules.

In this September 2008 Investor Relations Presentation, Trina Solar claims:

• Silicon usage of 7.2 gram/W in 2Q08, and with further reduction going forward
• Reduction of mono and multicrystalline wafer thickness
• Cell conversion rate of up to 17.2% monocrystalline & 16.0% multicrystalline

Not long after my Nitol Solar scores International Finance Corporation Investment post, Nitol Solar secured up to USD $190 million in project financing from the Russian Alfa-Bank for polysilicon production per “The Alfa-Bank will finance the solar industry component production project”.

Suntech Power Holdings Co., Ltd. (NYSE:STP) followed by announcing “Suntech Completes Investment in Nitol Solar. Suntech Successfully Tests Initial Batches of Polysilicon” completing “the final round of its $100 million in aggregate purchase of a minority interest in Nitol Solar”, and Suntech said “it was pleased with the test results from the initial batches of polysilicon that it has received from Nitol.”

Clarifying their ersol Solar Energy AG relationship, a Nitol Solar spokesperson said:

Ersol isn't a customer of Nitol. We did sign the Letter of Intent but we have never entered into the agreement with Ersol.

My checked bag was held hostage by Iberia Airlines for twenty-four (24) days before being released (returned) to me. The TSA compliant lock had been removed and various items were missing including my gadget bag. I have filed a claim with Iberia, but I have not gotten a response yet. I was home from Valencia, Spain, for over two weeks before it resurfaced.

Nitol Solar scores International Finance Corporation Investment

Polysilicon production to begin mid 2009.

Last Thursday, July 31, 2008, Nitol Solar Limited and the International Finance Corporation (IFC), one of the five institutions comprising The World Bank Group, announced a $50 million equity investment and $25 million loan by IFC to Nitol Solar per the dueling press releases:

Nitol Solar and IFC Announce Strategic Investment
IFC Supports Solar Cell Technology in Russia, Helping Alleviate Global Shortage

The Summary of Proposed Investment notes the investment will facilitate construction of Nitol Solar’s $450 million polysilicon manufacturing plant with 3700 MT (metric ton) per year annual capacity. The Nitol Solar plant is located in the Usolie-Sibirskoe, Irkutsk region, Russia, per my earlier post, From Siberia with Polysilicon.

The IFC investment follows the March 13, 2008, Nitol Solar and Suntech Announce Strategic Investment expanding upon the original Suntech Announces First Phase Polysilicon Supply Agreement with Nitol Solar. In this agreement, Suntech Power Holdings Co., Ltd. (NYSE:STP):

will acquire newly issued ordinary shares comprising a minority interest in Nitol Solar Ltd. for a total consideration of up to $100 million, subject to the satisfaction of certain conditions.

Later, Nitol Solar and Suntech Expand Polysilicon Supply Agreement again resulting in a substantial increase in the polysilicon committed volumes to be supplied between 2009 and 2015 to Suntech and:

Suntech has already paid the first $33 million installment of this investment to Nitol Solar.

Besides Suntech, Nitol Solar has announced polysilicon deals with ersol Solar Energy AG (see ersol and NITOL Group sign Polysilicon supply Letter of Intent), Motech Industries, Inc., Trina Solar Limited, and Evergreen Solar, Inc.

On the technical front, Nitol Solar produced first industrial batch of Polysilicon claims the first batch of polysilicon produced from the plant is suitable for manufacturing solar wafers per testing by the Evans Analytical Group (EAG Limited, LON:EAG). Suitability of the polysilicon for monocrystalline silicon wafers is not specified.

Although Nitol Solar delayed their IPO (Initial Public Offering) in February 2008 (see Russia's Nitol Solar postpones IPO- source) because of market conditions, they have rounded out their Management Team, Board of Directors, and Scientific Counsel with international talent.

I noticed a bit of revisionist history in Nitol Solar’s previous press releases. An over enthusiast marcom or public relations team updated all prior references from the “Nitol Group” to “Nitol Solar”. I wonder if the IFC will help Nitol Solar rectify these fine corporate governance points since the:

IFC is also working with Nitol Solar to enhance its environmental and social practices and assist the company by implementing international best practices in corporate governance.

And don’t forget Nitol Solar =is= a polysilicon reactor customer of the Class Action suited GT Solar International, Inc. (NASDAQ:SOLR) per GT Solar Signs $49M Polysilicon Reactor Contract with Nitol Group or the revised Nitol Solar and GT Solar Signed $49M Polysilicon Reactor Contract.