REC pumps in $3.4 billion to build plant in S’pore

REC pumps in $3.4 billion to build plant in S’pore 

.

NORWAY’S Renewable Energy Corp (REC) has committed $3.4 billion to build the first phase of the world’s largest integrated solar manufacturing plant in Singapore.

.

The green light comes after REC previously said it would make a final decision in the first half of this year. Production is expected to start in the first quarter of 2010.

.

With Singapore experiencing record inflation, rising constructions costs have been a concern. However, REC is taking this in its stride.

.

The funds committed include “contingencies and cost escalation due to inflation”, said Mr Oyvind Hasaas, REC’s senior vice-president for site operations. This also incorporates an unallocated project reserve.

.

Besides, REC says its costs were still below the industry average elsewhere. Also, its suppliers and contractors were offering competitive rates.

.

The plant in Tuas View is slated to begin production in the first quarter of 2010 and will manufacture solar wafers, cells and modules.

.

REC sees Singapore as its strategic hub. “We hope Singapore will have a competitive edge in these issues,” said Mr Hasaas.

.

Phase One is expected to reach a full capacity of 740MW of wafers, 550MW of cells and 590MW of modules before 2012.

.

By then, it is expected to generate about $2.5 billion a year in revenue. “The project cost levels should enable us to compete profitably at grid parity prices in several markets, which is essential in building a robust business case,” said REC president and chief executive officer Erik Thorsen in a statement.

.

REC will ramp up hiring for the plant later this year and expects to take on about 1,200 employees for jobs ranging from engineering to management. An on-site office with 40 employees was set up in April this year.

.

REC is expected to invest about $6.3 billion in all for the whole project, which was hailed as major coup for Singapore when first announced last year.

.

The company is also not ruling out building its own power generation facility to meet its operating needs. “It is an alternative we are investigating, to optimise energy consumption,” said Mr Hasaas.

.

The company expects to reach an investment decision on Phase Two by next year.

 

Source: Today Newspaper

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s