Concentrating Solar Power project portfolio sold, to switch from CSP to PV

solarhybrid and Solar Millennium, a specialist in the construction of concentrated solar thermal power plants, have signed conditional contractual agreements. Conditional contracts signed on the potential purchase of project companies with a pipeline of 2.25 GWp capacity (2,250 MWp) by solarhybrid AG from Solar Millennium AG.

Solar Millennium AG would secure pay back of investments into project development and participates in profits from project realization. solarhybrid AG achieves immediate access to US solar energy market and potential turnover of more than USD 5 billion from 2013 to 2017.

solarhybrid AG in Brilon, a specialist in the construction of photovoltaic (PV) solar power plants and Solar Millennium AG in Erlangen, a specialist in the construction of concentrated solar thermal power plants have signed conditional contractual agreements which are subject to finalization of advanced due diligence.

Subsequent to the completion of the transaction which is planned for the end of October, solarhybrid will own a pipeline for solar power projects with a total capacity of up to 2.25 GWp. solarhybrid AG thus would emerge as one of the largest PV project developers in the US. solarhybrid also plans to supply engineering, procurement and construction (EPC) services to these PV projects.

The companies have agreed to refrain from disclosing details of the transaction. However the signed agreements stipulate payments to Solar Millennium which will amount to its past investments into the projects and an additional fee upon successful realization of the projects.

A first payment to Solar Millennium was made on October 4, 2010. solarhybrid has financed this payment from its cash flows, which was possible due to its successful business in the third quarter. Sales, turnover, and profits exceeded the company’s expectations. solarhybrid confirms its forecast to be at least EUR 15 million profit and more than EUR 400 million turnover for 2011 fiscal year.

solarhybrid AG expects to execute the transaction through its wholly owned US subsidiary solarhybrid USA Inc. solarhybrid USA Inc. would continue project development, financing and EPC activities for the projects. Available resources from Solar Millennium Group in the US will be used as much as possible.

solarhybrid anticipates that the start of construction of the first project could be as early as 2013. The first project will probably be the 1,000MW Blythe Solar Power Project in California.

Tom Schröder, CEO of solarhybrid AG says: ‘With this exciting transaction we would gain unparalled access to the US market and successfully achieve a significant milestone in the internationalization of our business. We are confident in our ability to finalise the contracts by October 31st.’

solarhybrid AG is project developer and general contractor for turn-key photovoltaic solar power projects at utility scale. The company offers the following services:
– Project development and co-development
– Financing and structuring
– Sale to investors
– Engineering, procurement, and construction services (EPC contracting)
– Operation and Maintenance (O&M)

solarhybrid capital management 100% subsidiary of solarhybrid AG arranges project finance, investment structures and sales. A track record of more than 267 MWp of projects under construction or in operation confirm solarhybrid’s technical, organizational, and financial expertise. Projects in excess of 123 MWp capacity will be contracted shortly. Solarhybrid’s project pipeline comprises a total capacity of 2.5 GWp. The offices of solarhybrid in Germany are in Brilon, Hamburg, Frankfurt, international offices are in Italy, Middle East, and US. The shares of solarhybrid are traded in the open market at Frankfurt stock exchange.