Siemens AG (NYSE: SI) announced it will acquire the solar thermal power company Solel Solar Systems Ltd. for about $418 million.
To date, the majority stake has been held by Ecofin Ltd., a London-based investment firm, and another major shareholder.
Solel Solar Systems has a workforce of over 500 and is a leading supplier of solar receivers, which are key
components of parabolic trough power plants. The company, which posted revenue totaling almost $90 million in the first
six months of its current fiscal year (January 1 to June 30, 2009), also plans and constructs solar fields.
The transaction is subject to approval by the
responsible authorities. It is anticipated that the closing will take
place before the end of this calendar year.
“After the rapid and highly successful expansion of our wind power business, we now want to continue this success story in the solar sector. With the acquisition of Solel, Siemens can now strengthen its market position in the promising business of solar thermal power plants,” said Siemens President and CEO Peter Löscher.
Since 2006, Solel has also been present on the Spanish market, supplying key components for 15 solar thermal power plants with a combined capacity of 750 megawatts (MW). In addition, the company is also active on the U.S. market, Siemens said.
“Siemens and Solel are a perfect match,” said René Umlauft, CEO of Siemens’ Renewable Energy Division. “We are the market leader in steam turbines for solar thermal power plants and, with the power block, we can offer a key part for solar power plants–the part that is responsible for power generation. Solel boasts high-efficiency receiver technology and comprehensive expertise in the engineering and construction of solar fields. In the future, we’ll be able to offer the key components for the construction of parabolic trough power plants from a single source and to further enhance the efficiency of these plants.”
Until 2020, the market for solar thermal power plants will show annual double-digit growth rates and attain a volume of over €20 billion, Siemens said. In the future, the primary focal growth regions will be the U.S., South Africa, Australia, Spain, India, North Africa and the Middle East.
Parabolic trough power plants are particularly suitable for regions with high levels of direct insolation. The principle is simple: curved sun-tracking mirrors capture the sunlight and concentrate it on the solar receiver. A heat transfer medium, which is heated by the concentrated solar radiation, flows through the solar receiver. In a heat exchanger, steam is then generated for a steam turbine, which drives a generator, which in turn generates electricity. Together with the electrical and instrumentation and control equipment and the cooling systems, these components form the power block of a solar power plant.
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