Japanese oil distributor Showa Shell Sekyu KK (5002.T) and Saudi Aramco Oil Co plan to collaborate on small-scale solar power projects in Saudi Arabia next year, according to a Nikkei business daily report that did not cite sources.
In May, Showa Shell announced plans to spend close to US$2 billion over the next five years to expand production of solar equipment.
The Nikkei report said Saudi Aramco Oil, which is the state run oil company, will work with ShowaShell on several projects with generating capacities of 1 megawatt (MW) to 2MW each–for a total of about 10MW.
The projects will be in areas where there is currently no grid-supplied electricity. They will employ copper indium diselenide solar cell made by Showa Shell in Japan at its factory in Miyazaki Prefecture.
The report said if theses projects are successful, the two companies intend to create a joint venture around 2012 to pursue similar projects in the Middle East, Southeast Asia, Africa and Latin America.
Tokyo Electric Power Co (TKECF.PK) will provide support to the projects, the Nikkei said.
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