Norway’s privately held NorSun AS, which manufactures and markets mono-crystalline silicon ingots and wafers for the global solar energy industry, has raised $8.6 million (NOK 90 million) in new equity to finance the development of growth projects in the U.S. and Europe.
The new capital will be used to finalize plans for a five gigawatt (GW) production facility in the United States. NorSun will also assess plans to further expand in the Ardal in Vestland, Norway, targeting growth projects in the country as well as the rest of Europe, NorSun said in a news release.
Statkraft Ventures and Ardal Energi will come in as new shareholders of NorSun, investing $3.8 million (NOK 40 million) and $0.95 million (NOK 10 million), respectively. The remaining capital is subscribed for by three of the current main shareholders, Nysno Klimainvesteringer, Scatec Innovation, and ABN AMRO Sustainable Impact Fund, as well as the management of the company and some smaller shareholders, Norsun said.
“Through this transaction, existing shareholders, new investors and the company’s creditors have made it possible for NorSun to utilize its position as the leading western wafer producer for further development and expansion, both in the USA and Europe”, Norsun Chairman John Andersen, Jr. said.
“We are very pleased to become the new partner in the journey of establishing a leading western wafer manufacturer”, Statkraft Venture Managing Director Anders Prietz said. “We believe NorSun as the only European wafer producer today is well positioned to succeed in building a new 5 GW production facility in the U.S.”.
“NorSun’s position as the leading Western producer of wafers for the solar cell industry has contributed to significant interest in our growth plans from customers and other business partners”, NorSun CEO Erik Lokke-Owre said. “Together with existing and new shareholders, the management will implement an ambitious growth plan. In the first phase, we will secure binding sales contracts and financing as the foundation for an investment decision for the US plant, which is expected at year-end”.
In July, NorSun was awarded $59 million (EUR 54 million) in a grant from the European Union (EU) Innovation Fund for a 3-GW expansion of the company’s current ingot and wafer capacity in Årdal, according to an earlier news release.
The terms of the award will be negotiated during the second half of 2023, while customer negotiations and the implementation of a detailed technical preparation of an investment taking place in the same period, NorSun said in the release, adding that a decision is expected in the first quarter of 2024.
“We are very pleased to receive this award. It sends a strong signal to NorSun and the Norwegian authorities that the EU is serious when they urge Norway to take an active part in the solar value chain reconstruction”, Lokke-Owre said. “Norway can become the EU’s strategic upstream partner for the solar sector based on the significant process industry expertise in high-purity silicon, silicon ingots and wafers that we have in Norway”.
“Now, the challenge is to clarify the Norwegian support conditions for an expansion so that NorSun can accept this award and not only develop Årdal, but continue growth also in other parts of the Norway”, Lokke-Owre added.
According to the company website, NorSun’s manufacturing facility in Ardal has a production capacity of one GW, with all of its production completely based on hydroelectric power, resulting in low carbon dioxide emissions.
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