Tuesday, July 15, 2008

Evergreen Solar inks $1.2B deal with IBC Solar

By Mass High Tech Staff

Devens-based solar manufacturer Evergreen Solar Inc. has signed a long-term sales contract valued at approximately $1.2 billion with Germany-based IBC Solar AG.

The contract, which extends through 2013, brings Evergreen Solar’s (Nasdaq: ESLR) total contractual backlog to almost $3 billion with five customers. According to statements from Evergreen Solar president and CEO Richard Feldt, the new contract with IBC Solar represents the company’s largest single order in the history of the company.

The solar panels for all five of the backlogged contracts will be manufactured at the company’s new Devens facility, opened in June, that can produce panels to generate 160 megawatts facility in Devens. The company’s next factory, also in Devens, is expected to open in 2010. According to company statements, Evergreen Solar has contracted approximately 70 percent of the Devens’ facilities’ expected capacity through 2010 and all of the location’s capacity in 2011 through 2013.

Founded in Germany in 1982, IBC Solar provides residential and commercial solar products worldwide. To date, the company has installed more than 350 megawatts of power across more than 5,000 projects.

Evergreen Solar makes solar panels based on its proprietary String Ribbon technology, which executives say uses fewer materials and reduces the cost of production. The company reported a 2007 net loss of $16.6 million on revenue of $69.9 million.