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Savion Expands as Independent Power Producer, Orders 2.6 GW of Responsibly Produced Ultra-Low Carbon First Solar Modules
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
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Rhea-AI Summary
First Solar (FSLR) has entered into a multi-year agreement with Savion, LLC to supply 2.6 GWdc of Series 7 thin-film solar modules, set for delivery between 2025 and 2027. This deal aligns with the benefits from the Inflation Reduction Act, which supports U.S. renewable energy manufacturing. First Solar plans to enhance its domestic manufacturing, with a new $1.1 billion factory in Alabama and a $185 million expansion in Ohio, aiming for a total investment exceeding $4 billion. The company expects its annual production capacity to reach 10.6 GWdc by 2026, and it will invest $270 million in a new R&D center in Ohio by 2024.
Positive
Agreement for 2.6 GWdc of solar modules strengthens revenue stream.
Investment of $1.1 billion in Alabama factory and $185 million in Ohio expansion will increase production capacity.
Total investment exceeding $4 billion highlights commitment to U.S. manufacturing.
Projected increase to 10.6 GWdc annual U.S. production capacity by 2026.
Negative
None.
Multi-year order for Series 7 thin film solar modules with deliveries from 2025 to 2027
KANSAS CITY, Mo.--(BUSINESS WIRE)--
Savion, LLC (Savion) today announced the agreement to purchase 2.6 gigawatts (GWdc) of high-performance, responsibly produced Series 7 thin film solar modules from First Solar, Inc. (Nasdaq: FSLR). The deal with Savion was booked prior to the release of First Solar’s Q3 2022 earnings in October 2022, and the modules are scheduled to be delivered between 2025 and 2027.
The passing of the Inflation Reduction Act (IRA) has been a critical component in Savion’s commitment to supporting the expansion of the manufactured renewables supply chain in the United States. The IRA strongly contributed to the agreement between Savion and First Solar, the only U.S.-headquartered company among the world’s largest solar manufacturers.
First Solar is expanding its U.S. manufacturing capacity, with a third factory expected to come online in Ohio in the first half of 2023 and a fourth factory under construction in Alabama expected to be commissioned by 2025. Both factories will produce the Series 7 modules ordered by Savion. First Solar’s new $1.1 billionAlabama factory and $185 million expansion of its existing manufacturing footprint in Ohio are expected to bring its total investment in American manufacturing to more than $4 billion. The company’s annual U.S. nameplate manufacturing capacity is forecast to expand to 10.6 GWdc by 2026. First Solar also announced a $270 million investment in a dedicated research and development (R&D) innovation center in Perrysburg, Ohio, expected to be completed in 2024.
“As we accelerate our efforts to support America’s energy transition, we’re excited to move to an Independent Power Producer model,” said Nick Lincon, president of Savion and vice president of Onshore Renewables North America, Shell. “Our agreement with First Solar provides the certainty we need to execute our strategy. They share our values and strategic vision for increased domestic production efforts. Our team looks forward to working with the new Series 7 module, benefitting from its enhanced efficiencies and performance.”
Developed in close collaboration with Engineering, Procurement, and Construction (EPC) companies and structure and component providers, First Solar’s Series 7 modules combine the company’s thin-film cadmium telluride (CadTel) technology with a larger form factor and a new back rail mounting system to deliver improved efficiency, enhanced installation velocity, and superior lifetime energy performance for U.S. utility-scale PV projects.
“Savion’s stringent assessment of its suppliers mirrors our own commitment to Responsible Solar, and we are delighted to welcome Savion to the growing ranks of customers choosing to mitigate their risks and boost their competitiveness by entering into long-term supply agreements with First Solar,” said Georges Antoun, chief commercial officer for First Solar. “Moreover, our customers don’t simply get a competitive, high-performance solar module. They get a product that sets the benchmark for responsibly produced, sustainable PV.”
About Savion
Savion, a Shell Group portfolio company operating on a stand-alone basis, is one of the largest, most technologically advanced utility-scale solar and energy storage project development companies in the United States. With a growing portfolio of more than 23 GW, Savion’s diverse team provides comprehensive services at each phase of renewable energy project development, from conception through construction. As part of this full-service model, Savion manages all aspects of development for customers, partners, and project host communities. Savion is committed to helping decarbonize the energy grid by replacing electric power generation with renewable sources and delivering cost-competitive electricity to the marketplace. For further information, visit www.savionenergy.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 an order for 2.6 GWdcof solar modules by Savion; First Solar’s plan to invest approximately $1.1 billion in building a fourth factory in Alabama, and $185 million on expanding the capacity of its existing manufacturing footprint in Ohio; First Solar’s expectation that such investment will bring the company’s total investment in American manufacturing to over $4 billion, and its expectation that its annual US nameplate manufacturing capacity will expand to 10.6 GW by 2026; and our intention to invest approximately $270 million in a dedicated R&D innovation center and our expectation that, contingent upon permitting and pending approval of various state, regional and local incentives, this innovation center will be commissioned in 2024. 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.
What is the significance of First Solar's agreement with Savion?
First Solar's agreement to supply 2.6 GWdc of solar modules is significant as it secures a long-term revenue stream and supports supply chain growth in U.S. renewable energy.
How much is First Solar investing in new manufacturing facilities?
First Solar is investing $1.1 billion in a new factory in Alabama and $185 million in expanding its Ohio facility.
What is First Solar's expected manufacturing capacity by 2026?
First Solar expects its annual U.S. manufacturing capacity to increase to 10.6 GWdc by 2026.
How does the Inflation Reduction Act affect First Solar?
The Inflation Reduction Act has positively influenced First Solar's agreement with Savion, enhancing the company's ability to expand its manufacturing capabilities domestically.
When will the Series 7 modules be delivered to Savion?
The Series 7 modules are scheduled for delivery between 2025 and 2027.
