First Solar, Akuo in 500MW Global Supply Agreement for Advanced Thin Film Modules

Rhea-AI Summary

First Solar has secured a multi-year agreement with Akuo for the delivery of 500 MW_DC of thin film photovoltaic modules from 2024 to 2026. This deal includes 200 MW_DC for a US utility-scale project, with further deliveries planned for Europe. First Solar's modules are recognized for their quality and environmental performance, while the company is investing $680 million to boost US manufacturing capacity by 3.3 GW annually. This move is part of a broader strategy to reduce supply chain risks and enhance renewable energy production.

Positive

• Secured an order for 500 MW_DC of solar modules from Akuo, with deliveries from 2024 to 2026.
• Investing $680 million to expand US manufacturing capacity by 3.3 GW annually.
• The new facility in Ohio expected to create over 2,500 direct jobs and approximately 15,000 indirect jobs.

Negative

• None.

Multi-year agreement would see deliveries from 2024 to 2026 for US and international projects

TEMPE, Ariz. and PARIS, July 25, 2022 (GLOBE NEWSWIRE) -- First Solar, Inc. (Nasdaq: FSLR) today announced that Akuo, a Paris-headquartered independent global renewable energy producer and developer, has placed an order for 500 megawatts (MW)_DC of responsibly-produced thin film photovoltaic (PV) solar modules. Under the agreement, First Solar will supply 200 MW_DC for a utility-scale project developed by Akuo in the United States, with delivery scheduled for the first half of 2024. The remaining modules are expected to be delivered in 2025 and 2026, potentially powering projects in Europe or other regions where Akuo is present.

Founded in 2007, Akuo is a leading renewable energy developer with a presence in 15 countries, including the US, Spain, Greece, and Portugal. The company ended 2021 with 1.4 gigawatts (GW) of assets in operation or under construction and a project development pipeline of over 7 GW. The deal, which leverages First Solar’s agile contracting approach, allows Akuo to benefit from the evolution of First Solar’s advanced Cadmium Telluride (CadTel) thin film module technology platform over the span of the agreement.

“The solar industry operates against a backdrop of volatility and uncertainty, and this agreement is part of a broader effort to reduce the long-term supply risks of our global portfolio to actually deliver our projects,” said Eric Scotto, chief executive officer, Akuo. “First Solar’s ability to provide supply chain traceability and its commitment to responsible manufacturing was crucial to us. It leads the industry with its long history of establishing benchmarks in supply chain transparency and the low environmental footprint of its technology, all of which reflects our shared value of responsible business practices. As a European player, we are strongly committed to these values echoing our ambition for the planet.”

Designed and developed at its research and development (R&D) centers in California and Ohio, First Solar’s responsibly-produced advanced thin film PV modules set industry benchmarks for quality, durability, reliability, design, and environmental performance. First Solar also operates an advanced high-value recycling program, which recovers approximately 90 percent of Cadmium Telluride (CadTel) semiconductor material which can be used to manufacture new modules, as well as other materials including aluminum, glass, and laminates. The company currently operates commercial recycling facilities in the US, Germany, Malaysia, and Vietnam. Additionally, First Solar is the only company among the ten largest solar manufacturers globally 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.

“We’re pleased to welcome Akuo to a growing number of long-term strategic partnerships with experienced global developers that have placed their trust in First Solar and our technology,” said Georges Antoun, chief commercial officer, First Solar. “Developers in Europe are recognizing the risks associated with having a geographically concentrated solar supply chain and are electing to take a long-term approach to supply diversity and security by working with us. Our differentiation rests as much on our ability to help our customers navigate volatility and uncertainty as our technology.”

First Solar is investing $680 million in expanding America’s domestic PV solar manufacturing capacity by 3.3 GW annually, by building its third US manufacturing facility, in Lake Township, Ohio. The new facility is expected to be commissioned in the first half of 2023 and when fully operational will scale the company’s Northwest Ohio footprint to a total annual capacity of 6 GW, which is believed to make it the largest fully vertically integrated solar manufacturing complex outside of China. First Solar has invested over $2 billion in its US manufacturing footprint and, when its third factory is fully operational, will directly employ over 2,500 people in Ohio, while supporting an estimated 15,000 indirect jobs through its American supply chain.

In addition to its Ohio manufacturing facilities, First Solar also operates factories in Vietnam and Malaysia, and is building a new 3.3 GW factory in India that is expected to be commissioned in the second half of 2023. With First Solar’s expansion in the United States and India and optimization of its existing fleet, the company anticipates that its nameplate manufacturing capacity will double to 16 GW in 2024. First Solar is the only US-headquartered company among the world’s ten largest solar manufacturers.

About Akuo
Akuo is an independent global renewable energy producer and developer. The company is present across the entire value chain, including project development, financing, construction, and operation. Akuo had invested more than EUR 2.8 billion as of end 2021 and currently has a total capacity of 1.4 GW in operation or under construction and 7 GW of projects under development. With more than 450 employees, the Group, headquartered in Paris, France, has a presence in more than 15 countries around the world. For more information, please visit www.akuoenergy.com/en

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 500 MW_DC of solar modules by Akuo; and (2) First Solar’s plans to establish new factories in the United States and India, the expected capacities of those factories; and First Solar’s resulting global manufacturing capacity. 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 and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission.  

Contacts First Solar Media media@firstsolar.com	First Solar Investor Relations investor@firstsolar.com
Akuo Media Jérôme Chosson chosson@akuoenergy.com	Akuo Investor Relations Joëlle Bassil bassil@akuoenergy.com

FAQ

What is the significance of the recent agreement between First Solar and Akuo?

The agreement involves First Solar supplying 500 MW_DC of solar modules to Akuo, aiming to reduce supply chain risks and enhance renewable energy production.

How much is First Solar investing in expanding its manufacturing capacity?

First Solar is investing $680 million to increase its US manufacturing capacity by 3.3 GW annually.

What is the expected impact of First Solar's new manufacturing facility?

The new facility in Ohio is expected to create over 2,500 direct jobs and support approximately 15,000 indirect jobs.

When are the deliveries for the solar modules scheduled?

Deliveries of the solar modules are scheduled from 2024 to 2026, with 200 MW_DC expected in the first half of 2024.