The primary fruits of US President Joe Biden‘s Inflation Discount Act have already been witnessed, with Swiss photo voltaic module and manufacturing line producer Meyer Burger ramping up its photo voltaic panel manufacturing plans.
The heterojunction module maker cited the US local weather change and well being care bundle as one of many causes it’s accelerating its manufacturing plans, together with a giant module order from New York-based developer DE Shaw Renewable Investments. Publishing its first-half outcomes on its web site this week, Meyer Burger stated the extension of the Funding Tax Credit score for photo voltaic manufacturing in the US – which was a part of the Inflation Discount Act – will probably be value $0.07 occasions the nominal energy output of every Meyer Burger module produced stateside.
DE Shaw has positioned an order for 3.75 GW of the European producer’s panels, to be delivered from 2024 to 2029. It is going to pay a “substantial annual down cost” to assist Meyer Burger fund the manufacturing capability required to fulfill such supply necessities.
Nevertheless, the European firm stated the US tax incentive and buyer deposits won’t be enough to finance a doubling of its manufacturing capability to three GW per 12 months. The enterprise, headquartered in Gwatt, Switzerland, stated it will want an additional CHF 250 million ($262.3 million) so as to add 1.5 GW of manufacturing strains at its base in Thalheim, Germany, and 1 GW at its location in Goodyear, Arizona. Particulars of the fundraising effort will probably be introduced to shareholders “within the subsequent months,” the corporate stated.
Historically a photo voltaic manufacturing gear provider, Meyer Burger’s choice to enterprise into module manufacturing has come at a value to its backside line because it ramps up its panel-making amenities. First-half income leapt from CHF 18 million within the first six months of final 12 months to CHF 56.7 million this time round, with Meyer Burger stating that it was efficiently passing on rising enter prices to prospects.
That led to a widening in internet six-month losses, from the CHF 37.2 million shed in January-June 2021 to CHF 41 million. The funding required for module manufacturing has seen the corporate’s money steadiness fall from CHF 247 million on the finish of final 12 months to CHF 186 million on the finish of June. The excellent news is that DE Shaw has an choice to broaden its order to as much as 5 GW of high-efficiency modules and to increase the size of the availability deal.