Energix Renewables, First Solar Enter into Framework Agreement

Rhea-AI Summary

First Solar, Inc. (NASDAQ: FSLR) has announced a significant deal with Energix Renewables to deliver 51 gigawatts (GWDC) of thin film solar modules for projects in Israel, Poland, and the US between 2026 and 2030. This deal reflects a long-term strategic partnership and a significant milestone for Energix's global pipeline, emphasizing the company's commitment to a sustainable energy future.

Positive

• Long-term strategic partnership with Energix demonstrates First Solar's strong market presence and commitment to sustainability.
• Energix's significant growth, especially in the United States, is reinforced by this deal, reflecting positively on First Solar's technology and market position.
• First Solar's investment in expanding its US manufacturing footprint and the dedication to sustainable electronics further solidify its position as a market leader.

Negative

• None.

• Modules to be delivered between 2026 and 2030 for projects in Israel, Poland, and US
• Built on existing orders, deal will see Energix operate over 7-9 GW of First Solar technology by 2030

TEMPE, Ariz.--(BUSINESS WIRE)-- First Solar, Inc. (NASDAQ: FSLR) today announced that Energix Renewables has agreed to procure 5¹ gigawatts (GWDC) of its responsibly produced, ultra-low carbon thin film solar modules. The modules, which will power Energix projects in Israel, Poland, and the United States, will be delivered between 2026 and 2030. Energix, one of Israel’s largest renewable energy companies with a portfolio of more than 7 GW of projects under development in Israel, Poland and the United States, has also contracted First Solar Recycling Services to manage end-of-life handling of decommissioned modules. Prior to this deal, the company has placed over 3.5 GWDC of orders for First Solar technology since 2017.

First Solar today announced that Energix Renewables has agreed to procure 5 gigawatts (GWDC) of its responsibly produced, ultra-low carbon thin film solar modules. The modules, which will power Energix projects in Israel, Poland, and the United States, will be delivered between 2026 and 2030. (Photo: Business Wire)

“As we grow our pipeline, we want a trusted partner that will not compromise on quality, its commitments, or principles, and that partner is First Solar,” said Asa (Asi) Levinger, chief executive officer, Energix. “This deal, our largest ever, strongly reflects the long-term strategic partnership we share with First Solar. It also constitutes a significant milestone for Energix's long-term growth, as we rapidly expand our global pipeline, with an emphasis on the United States. With shared goals and a united vision for a sustainable energy future, this deal perfectly suits our needs, paving the way for groundbreaking achievements and reinforcing our commitment to our stakeholders.”

“This deal demonstrates once again the substantial place Energix takes as one of our biggest client worldwide, and we feel honorable to take active part in Energix’s significant growth, especially in the United States. We are pleased that Energix will power its asset portfolio with First Solar’s module technology,” said Georges Antoun, chief commercial officer, First Solar. “This is another example of a large, sophisticated player choosing to de-risk its development portfolio by working with us. They recognize that they do not simply get a high-quality, high-performance, responsibly-produced PV module, but a trusted partner and long-term pricing and supply certainty, which are rarities in the solar industry.”

First Solar’s responsibly produced, advanced thin film photovoltaic (PV) modules set industry benchmarks for quality, durability, reliability, design, and environmental performance. The company’s solar modules have the lowest carbon and water footprint of any commercially available PV module today, and it’s the first PV manufacturer to have its product included in the Electronic Product Environmental Assessment Tool (EPEAT) global registry for sustainable electronics. End-of-life modules from Energix projects will be processed by First Solar’s pioneering high value recycling program, which provides closed-loop semiconductor recovery for use in new modules, while also recovering other materials including aluminum, glass, and laminates.

First Solar’s differentiated thin film semiconductor, integrated manufacturing process and tightly controlled supply chain helps eliminate the risk of exposure to solar supply chains identified by the US Department of Labor’s 2022 List of Goods Produced by Child Labor or Forced Labor as being tainted by forced labor. The company is the only one of the world’s ten largest solar manufacturers to be a member of the Responsible Business Alliance (RBA), the world’s largest industry coalition dedicated to supporting the rights and well-being of workers and communities in the global supply chain, and the company has zero tolerance for forced labor in its manufacturing or its supply chains.

First Solar is investing approximately $1.3 billion in expanding its US manufacturing footprint from over 6.5 gigawatts (GWDC) of annual nameplate capacity currently, to approximately 10.9 GWDC by 2026. In addition to the $1.1 billion expected investment in a new 3.5 GWDC facility in Alabama, the company has also embarked on a $185 million expansion of its existing manufacturing footprint in Ohio. First Solar, the largest solar manufacturer in the Western Hemisphere, also announced an investment of up to $370 million for a dedicated research and development (R&D) innovation center in Perrysburg, Ohio, which is expected to be completed in 2024.

About Energix Renewables

Energix Renewable Energy Ltd. (TASE: ENRG) is a well-known and reputable global renewable energy company with operations in the United States, Poland, and Israel. Energix specializes in the development, construction, and operation of renewable energy generation projects with a focus on solar energy, wind power, and energy storage. As of May 2023, Energix has an aggregate portfolio of renewable energy projects of more than 8.5GW MW and 7GW storage, over 867MW of operational projects worldwide and 850 projects under or near construction. Energix is expanding rapidly and constantly developing new projects with various financial, operational, and local partners. Energix leverage the latest advancements in solar panel technology, wind turbine design, and energy storage systems to maximize energy production and optimize the overall efficiency of its projects. Energix focuses on the development of clean energy solutions to contribute to the transition towards a more sustainable and low-carbon future. For more information, please visit www.energix-group.com.

About First Solar, Inc.

First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the company’s advanced thin film photovoltaic (PV) modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.

For First Solar Investors

This release contains forward-looking statements, which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to statements concerning 1) an order for 5 GWDC of solar modules by Energix Renewables; 2) the expectation that the modules will be delivered between 2026 and 2030; 3) First Solar’s plan to invest approximately $1.1 billion in building a fourth factory in Alabama, $185 million on expanding the capacity of its existing manufacturing footprint in Ohio, and $370 million in a new R&D innovation center in Ohio; and 4) First Solar’s expectation that its annual US nameplate manufacturing capacity will expand to 10.6 GW by 2026. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K, as supplemented by our other filings with the Securities and Exchange Commission.

¹ Under the terms of the agreement, (1) Energix will take delivery of modules on an Free Carrier (FCA) basis from a location near the relevant First Solar factories, and (2) Energix has the right to increase or decrease the total volume to be procured under the agreement by 200 MWDC each year during the 5-year term (with any such increase subject to module availability).

View source version on businesswire.com: https://www.businesswire.com/news/home/20230715753063/en/

Media

Reuven Proença

First Solar Media

media@firstsolar.com

Investors

Robyn Remes

First Solar Investor Relations

investor@firstsolar.com

Source: First Solar, Inc.

FAQ

What is the deal between First Solar and Energix Renewables?

First Solar has agreed to deliver 51 gigawatts (GWDC) of thin film solar modules to Energix Renewables for projects in Israel, Poland, and the US between 2026 and 2030, reflecting a long-term strategic partnership and a significant milestone for Energix's global pipeline.

What are the key benefits of First Solar's modules?

First Solar's responsibly produced, advanced thin film photovoltaic (PV) modules set industry benchmarks for quality, durability, reliability, design, and environmental performance. They have the lowest carbon and water footprint of any commercially available PV module today.

How is First Solar contributing to sustainability and responsible manufacturing?

First Solar's investment in expanding its US manufacturing footprint, dedication to sustainable electronics, and commitment to eliminating forced labor in its supply chain demonstrate the company's focus on sustainability and responsible business practices.