French-owned energy group Total is offering $1.37 billion for a majority stake in California-based solar panel manufacturer SunPower, to create a partnership that could help the solar industry move to the next stage of its development.
The boards of both companies have approved the deal, and SunPower will continue to operate with its current management team after it is concluded. Total will also provide SunPower with up to $1 billion of credit support over the next five years.
“Total’s commitment and global presence will help accelerate our growth and solidify our position in the increasingly competitive solar sector,” said Tom Werner, SunPower’s CEO.
“With Total’s $1 billion credit support agreement, solar research and development investments and the other resources available through its global network, we have taken the next step in positioning our business for continued growth and long-term success. Our relationship with Total will improve our capital structure enabling SunPower to accelerate our power plant and commercial development businesses, and expand our manufacturing capacity with lower cash requirements.”
“The world future energy balance will be the result of a long-term transition in which renewable energies will take their place alongside conventional resources,” said Philippe Boisseau, President, Total Gas and Power Division.
“Over the past years, Total has built up sizeable renewable energy activities. Today, Total is executing on its strategy to become a major integrated player in solar energy. We evaluated multiple solar investments for more than two years and concluded that SunPower is the right partner based on its people, world-leading technology and cost roadmap, vertical integration strategy and downstream footprint.”
“Solar is becoming a material addition to the new generation portfolio around the world, with more than 40,000 MW of solar photovoltaic power installed globally,” continued Werner. “Total and SunPower will collaborate to ensure that solar becomes a platform for an efficient, competitive and sustainable energy future. Already, SunPower’s high-efficiency, high-reliability solar photovoltaic power plant costs are competitive with other new resources.”
Earlier this month, GE announced plans to build the largest solar panel manufacturing plant in the United States as part of a $600 million investment in solar power.
http://www.bus-ex.com/article/ge-plans-new-solar-panel-plant
