Dive Brief:
- Solar panel maker Meyer Burger Technology AG canceled plans to expand its solar cell facility in Colorado Springs, Colorado, saying it’s “no longer financially viable,” according to an Aug. 26 press release.
- The plant was initially announced in July 2023 and the company planned to invest $403.5 million, creating 380 jobs, according to a presentation for Colorado Springs’s city council.
- The company instead will shift its focus to ramping up its module production plant in Goodyear, Arizona, which has a capacity of 1.4 gigawatts and began operations in June.
Dive Insight:
The Colorado Springs factory investment was part of the Switzerland-based company’s plan to establish a solar cell facility in the U.S., according to a July 2023 presentation.
Meyer Burger expected to receive almost $90 million from state and local incentives and a $300 million loan from the Department of Energy. The company submitted its DOE application and Meyer Burger was negotiating with U.S. and Germany banks to finance the facility, the company said in June.
Moreover, Meyer Burger was also negotiating with an unnamed U.S.-based technology firm to secure additional financing. However, the technology group’s “planned cooperation” will not be implemented, the company said in the August release. The discussions led Meyer Burger to postpone the release of its half-year results twice, from Sept. 16 to Sept. 30.
Had plans gone through, the plant would have begun production in Q4 and aimed to produce 2 gigawatts of solar cells and modules in the U.S., making it eligible to receive up to $1.4 billion in Inflation Reduction Act tax credits.
The company still plans to pursue the 45X tax credits, but with a lower volume requirement. Meyer Burger also lowered its financing needs and profitability target, the company said in the August press release, and is working on a restructuring plan to cut costs.
Meyer Burger plans to once again make its solar cell facility in Thalheim, Germany, the backbone of its solar cell supply. The manufacturer had plans to expand the Goodyear facility by .7 gigawatts, but those blueprints has been suspended for now, the company said.
“Under the current market conditions, these solar cells are the most economical option for supplying the module production in Goodyear,” the company stated in the August release. “With this arrangement, the company expects to be able to service the existing long-term purchase contracts and to fully utilize the production capacity in Goodyear.”
Meyer Burger was able to get one deal in the U.S. — the company signed a solar cell manufacturing agreement with aerospace contractor Solestial earlier this month.
Starting Sept. 1, Meyer Burger will receive radiation-hardened silicon wafers from Soletial’s facility in Tempe, Arizona. From there, the Switzerland-based company will apply its silicon material layers to the wafers and then return them to Soletial’s Tempe facility, which will be used to power hundreds of spaceships by mid-2025.
