Totalenergies has launched authorized motion in opposition to main photo voltaic producer Trina Photo voltaic, alleging fraud and breach of contract referring to a 900MW+ module order.
Court docket filings filed final week and seen by PV Tech present Totalenergies Renewables and US-based subsidiaries have launched the motion in Alameda County, California, claiming that Trina breached contracts and acted fraudulently in relation to module orders price round US$300 million, signed final 12 months.
Subsidiaries of Whole entered into 4 implementation agreements for modules certain for 4 initiatives within the US – three in California, one in Texas – with the overall order exceeding 900MW.
These agreements included;
- A US$115 million order for ~360MW of modules certain for the Danish Fields mission in Texas, negotiated at a value of US$0.32c/W DDP.
- A US$22.8 million order for 71.2MW of modules headed for the Skysol mission in California, negotiated at a value of US$0.32c/W DDP.
- A US$318 million order for 99.5MW of modules headed for the Ellis mission in California, negotiated at a value of US$0.32c/W DDP, and;
- A contract valued at between US$115 – 121 million for ~380MW of modules for the Myrtle mission in California, negotiated at a worth of between US$0.305 – 0.32c/W DDP, the top worth of which trusted the delivery answer chosen by Whole.
All 4 agreements have been signed in July 2021, with module shipments anticipated to start in February 2022 earlier than finishing in September.
Whole claims it paid a deposit funds totalling US$8.75 million for all 4 agreements, with the value, quantity and supply schedule all secured.
Whole additionally claims it acquired assurances from Trina officers that manufacturing capability for the agreements had been “reserved”.
Nonetheless Whole alleges that on three separate events following the signing of the implementation agreements Trina sought to safe extra funds, citing numerous points that will change the pricing and supply schedule of the orders.
Trina is alleged to have issued Whole’s subsidies with a discover of power majeure on 30 September 2021, confirming that as a result of implementation of controls on electrical energy utilization in China on the time, the manufacture couldn’t produce modules at full capability. This discover was rejected by Whole the next month, Whole having claimed that there inadequate grounds or proof to declare power majeure.
Between August and October that 12 months Trina can also be alleged to have pointed to uncertainty stemming from the preliminary antidumping and countervailing responsibility petition filed with the Division of Commerce, which stood to complicate the delivery of photo voltaic modules made in Southeast Asia to the US.
This petition was, nonetheless, rejected in November 2021, after which Whole claims that Trina pointed to the problem of the withhold launch order which had meant some shipments of photo voltaic items have been being blocked by US Customs and Border Safety.
In late December Trina is alleged to have knowledgeable Whole that traceability documentation had been accepted, nonetheless this was swiftly adopted by a request for US$40 million in extra funds – on high of the beforehand negotiated costs – with Trina citing extreme silicon and transport prices.
Whole alleges that, thus far, Trina has did not ship any modules beneath the implementation agreements signed in July of final 12 months, breaching these agreements.
Trina can also be alleged to have breached sections of the agreements pertaining to product traceability info, which Whole stated it has not acquired.
Whole has stated it has been pressured to pursue various procurement preparations for the 4 initiatives in query which has left them delayed and going through increased costs. Whole estimates that not solely will it face extra prices of round US$100 million as a result of non-delivery of modules, however delays to the energisation of the initiatives has additionally price the enterprise in extra of US$100 million.
The case has been filed in California and accuses Trina of promissory fraud, fraudulent inducement and breach of contract, with a fourth reason for motion over declaratory reduction.
Whole is being represented by Los Angeles-based regulation agency Hueston Hennigan LLP within the case.
Trina was contacted for remark for this story by PV Tech, nonetheless the enterprise has but to reply.
