First Solar, Inc. (Nasdaq: FSLR) today announced a Cooperation Framework Agreement with the Chinese government that takes another step towards the realization of an enormous solar power plant in the autonomous region of Inner Mongolia, China.
First Solar President Bruce Sohn and Mayor Yun Guangzhong of the Ordos City Government signed the Cooperation Framework Agreement in the presence of Chinese Vice Premier Li Keqiang, Vice Minister Liu Qi of the National Energy Administration, and U.S. Secretary of Energy Steven Chu.
The Agreement between First Solar and Ordos spells out additional project details and local support that advance the development of the 2 gigawatt (GW) solar power plant and confirm the June 1, 2010 expected construction start date for the 30 megawatt (MW) Phase 1. First Solar and Ordos also agreed to establish two committees to ensure the successful execution of the project and to develop a new energy industry in Ordos.
“This Cooperation Framework Agreement and its recognition by the National Energy Administration mark a critical step forward in the approval process for the Ordos project, one of the world’s most ambitious renewable energy projects,” said First Solar CEO Rob Gillette. “It reinforces the commitment of First Solar, the Chinese government, and the Ordos local government to make an immediate contribution to the development of a healthy solar industry in China and to the reduction of greenhouse gas emissions.”
The signing ceremony took place as part of the U.S.-China Summit where U.S. President Barack Obama and Chinese President Hu Jintao met to discuss upcoming global climate change negotiations and clean energy, among other topics.
The 2GW First Solar project is to be built in multiple phases, beginning with the 30MW Phase 1. Phases 2, 3 and 4 are to be 100MW, 870MW, and 1,000MW, respectively. Phases 2 and 3 are to be completed by 2014 and Phase 4 is to be completed by 2019. The project is part of a planned 11.95GW New Energy Industry Demonstration Zone in Ordos City, Inner Mongolia. The New Energy Industry Demonstration Zone is expected to combine solar, wind, hydroelectric and biomass power sources to provide a steady supply of renewable energy to the region that includes the Chinese capital.
The Cooperation Framework Agreement sets forth the agreement in principle of the parties concerning the project and related activities. Final agreement between the parties is still subject to the negotiation and execution of definitive agreements among the parties.
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