Silicon Ranch and First Solar expand partnership with 4 GW supply agreement

Rhea-AI Summary

First Solar (FSLR) has signed a master supply agreement with Silicon Ranch to deliver 4 GW of advanced solar modules from 2023 to 2025. This partnership enhances U.S. energy transition efforts, promotes domestic solar manufacturing, and supports Silicon Ranch's long-term asset ownership strategy. The agreement also includes recycling services for decommissioned modules, recovering about 90% of Cadmium Telluride materials. Additionally, First Solar is investing $680 million in expanding its U.S. manufacturing capacity, aiming for 6 GW annually by 2023.

Positive

• Secured a master supply agreement with Silicon Ranch for 4 GW of solar modules.
• Enhances U.S. energy transition and supports domestic solar manufacturing.
• First Solar's investment of $680 million to expand U.S. manufacturing capacity by an additional 3.3 GW annually.

Negative

• None.

• Strategic partnership advances US energy transition with a low-carbon commitment and supports domestic solar manufacturing
• Multi-year agreement would see module deliveries for US projects spanning 2023-25
• Silicon Ranch contracts First Solar to provide recycling services for decommissioned solar modules
  

TEMPE, Ariz. and NASHVILLE, Tenn., April 12, 2022 (GLOBE NEWSWIRE) -- First Solar, Inc. (Nasdaq: FSLR) today announced that it has signed a master supply agreement (MSA) to supply 4 gigawatts (GW)_DC of advanced, responsibly-produced thin film photovoltaic (PV) solar modules to Silicon Ranch, one of the nation’s largest independent power producers. The deal, one of First Solar’s largest, will see Silicon Ranch’s projects in the United States receive modules from 2023 to 2025. Silicon Ranch will benefit from the evolution of First Solar’s advanced Cadmium Telluride (CadTel) thin film module technology platform over the span of the agreement.

This significant agreement represents the latest milestone in the relationship between two best-in-class solar businesses, advancing the US energy transition while supporting American solar manufacturing growth. The growing strategic partnership began in 2015 when Silicon Ranch contracted with First Solar to supply the modules for its Aerojet Rocketdyne Solar Farm in Arkansas, the state’s first utility-scale solar project. The partnership between these industry leaders has grown substantially across the US since then, with over 30 projects totaling more than 1 GW.

“Silicon Ranch’s business model of long-term asset ownership demands that we emphasize best-in-class strategic partners and requires us to consider the future in every action we take, from the modules we buy all the way through to how we manage the land we occupy,” said Reagan Farr, co-founder and chief executive officer, Silicon Ranch. “Our customers care about the carbon impact of their procurement choices, and so do we at Silicon Ranch. We are already proving that we can sequester carbon on our sites through our Regenerative Energy^® model of land management, and this partnership with First Solar enables us to improve the carbon footprint of our module supply, while also supporting additional investment in US manufacturing capabilities. We have grown our business at Silicon Ranch through our faith in the power of collaborative partnerships, and we are thrilled to expand our relationship with First Solar as we accelerate our growth strategy across the country.”

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. Under the agreement, end-of-life CadTel modules from Silicon Ranch projects can be processed by First Solar’s advanced high value recycling program, which recovers approximately 90 percent of CadTel material which can be used to manufacture new modules, as well as other materials including aluminum, glass, and laminates. Additionally, the recycled glass can be converted into useful glass products for beneficial use, while laminates can be processed into rubber products including shoe soles and bicycle handles. First Solar currently operates commercial recycling facilities in the US, Germany, Malaysia, and Vietnam.

“Since the beginning of our relationship, it has been clear that Silicon Ranch recognizes the value of taking a long-term view on procuring solar technology,” said Georges Antoun, chief commercial officer, First Solar. “Long-term module supply agreements with a trusted partner provide a vital hedge against the pricing and supply uncertainties that have impacted the solar industry over the past few years. And with First Solar’s agile contracting strategy, Silicon Ranch will have the added benefit of access to our best-in-class PV technologies as they continue to evolve. First Solar is pleased to strengthen our relationship with Silicon Ranch through this agreement.”

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 7,000 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.

Nashville-based Silicon Ranch pioneered utility-scale solar in the Southeast with the first large-scale solar projects in Tennessee, Georgia, Mississippi, Arkansas, and Kentucky. The company has successfully commissioned every project it has contracted since its inception and has further distinguished itself through its commitment to own and operate each project in its portfolio for the long term. Today Silicon Ranch owns, operates, and maintains more than 150 solar generating facilities in 15 states from New York to California. Earlier this year, Silicon Ranch completed a $775 million equity raise led by Manulife Investment Management.

About Silicon Ranch Corporation
Founded in 2011, Silicon Ranch is a fully integrated provider of customized renewable energy, carbon, and battery storage solutions for a diverse set of partners across North America. The company is one of the largest independent power producers in the country, with a portfolio that includes more than four gigawatts of solar and battery storage systems that are contracted, under construction, or operating across the U.S. and Canada. Silicon Ranch owns and operates every project in its portfolio and has maintained an unblemished track record of project execution, having successfully commissioned every project it has contracted in its history. In recognition of its holistic approach to land management, which the company has trademarked Regenerative Energy^®, Silicon Ranch was named 2020’s “Most Forward-Thinking” company by Solar Power World. To learn more, visit siliconranch.com and regenerativeenergy.org and follow on Facebook, Instagram, Twitter, and LinkedIn.

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 4 GW_DC of solar modules for Silicon Ranch Corporation; (2) First Solar’s plans to establish new factories in the United States and India and the expected capacities of those factories; and (3) when those factories are expected to be commissioned and First Solar’s resulting Northwest Ohio and 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. 

Media Reuven Proença First Solar Media reuven.proenca@firstsolar.com	Investors Mitch Ennis First Solar Investor Relations mitchell.ennis@firstsolar.com
Katie Jacobs Quarter Horse PR for Silicon Ranch katie@qh-pr.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8a77dffe-b885-4a8b-a7f8-0cdbefc0f2a4

FAQ

What is the significance of the First Solar and Silicon Ranch partnership?

The partnership is significant as it secures a 4 GW supply of solar modules for Silicon Ranch, promoting U.S. energy transition and supporting domestic manufacturing.

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

First Solar is investing $680 million to expand its U.S. manufacturing capacity by 3.3 GW annually.

What is First Solar's recycling program for decommissioned solar modules?

First Solar's recycling program aims to recover approximately 90% of Cadmium Telluride materials from decommissioned modules.

When will the modules be delivered to Silicon Ranch?

The modules are scheduled to be delivered between 2023 and 2025.

What type of solar technology does First Solar produce?

First Solar produces advanced thin film photovoltaic (PV) solar modules.