Download - Rec Solarcon Matt Daly 10 May10
Renewable REC Seeing is BelievingEnergy Corporation GROUP
SiliSOLARCON Singapore Conference 2010
Seeing is Believing
Silicon Materials May 20, 2010
Matt DalyGeneral Manager, REC Solar Asia Pacific
Wafers
ModulesCells Systems
Renewable REC Th bi i tEnergy Corporation GROUP
The big picture
SolarconSingapore
Conference2010The world needs more energy
Supply of different energy sourcesSupply of different energy sourcesExajoule2,500
N l2,000
Nuclear
Renewables
1 000
1,500
500
1,000
Natural Gas
01990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
Oil
Coal
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Source: The Intergovernmental Panel on Climate Change (IPCC), SRES (Special Report on Emission Scenarios), Alt. 1Definition: exajoule (EJ) is a unit of energy, 1018 joules, often used as unit of measure for world annual energy use
1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
SolarconSingapore
Conference2010Majority of the world’s population lives within the sunbelt
Definition:The sunbelt is defined as equator +/- 30°
0.0 1.0 2 0 3.0 4.0 5.0 6.0 7.0 8.0 >8.5kWh/m2/day
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0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.5
Source: NASA Surface meteorology
SolarconSingapore
Conference2010The sun supplies “virtually unlimited” energy
e Uranium
Solar power
ergy
sou
rce Uranium
Natural gas
stoc
k of
en
Oil
Coal
Equi
vale
nt
Annual energy demandE
Fact: There is more energy delivered by the sun in one hour than what is consumed by the world’s population in one year
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SolarconSingapore
Conference2010
Payback time of around one year
The energy payback time is decreasing
Energy payback time Payback time of around one year• Energy payback is the time it takes a
solar panel to generate the same amount of energy that was used to
d it
Energy payback timeNumber of years2.5
produce it
For the remaining 24 years of its guaranteed lifetime, a solar panel will b ‘ iti ’
2
be ‘energy positive’
1
1.5
0.5
1
0Mono 2005 Multi 2005 REC 2007 REC todaySource: Alsema et al. (EU Crystal Clear project), 21st European PV
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Mono 2005 Multi 2005 REC 2007 REC todayConference, Dresden, 2006
SolarconSingapore
Conference2010The concept of grid parity
Pric
e
GRID PARITY
Time2010
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Source: BP Solar
2010
SolarconSingapore
Conference2010Solar energy is produced near the point of consumption
DISTRIBUTIONDISTRIBUTION
Power plant High voltage grid Transformer Low voltage grid Customer
The price of electricity includes generation cost as well as transmission cost
Solar energy can be produced near, or at the point of consumption
Price comparisons should therefore be determined at the point of consumption
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SolarconSingapore
Conference2010Exeptional growth in installed capacity
Global cumulative PV power installedGlobal cumulative PV power installed
14 000
16 000
12 000
14 000
8 000
10 000
MW
4 000
6 000
0
2 000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Global market outlook for photovoltaics until 2013, EPIA
SolarconSingapore
Conference2010Production volumes drives cost reductions
Historical module learning curveHistorical module learning curve
100
SD/W
p 1980
10
dule
pric
es U
S
1990
2000
PV M
od
2006
1
0 10 1001 1,000 10,000 100,000
Cumulative Module Production (MWp)
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SolarconSingapore
Conference2010PV demand forecast
GW Demand
25 0
30.0 28,0
20.0
25.0
Hi h15 0
21,0
10.0
15.0 HighLowREC estimate
7,3
13,115,0
6.0 8.4 8.9 10.6 12.7
0.0
5.0
9-10 GW 12-13 GW 16-18 GW 22-24 GW REC Estimate
2009 2010 2011 2012 2013
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All estimates published January to March 2010
SolarconSingapore
Conference2010Investor returns remains relatively high
2009Equity IRR*
30 %
20112010Percent
Significant increase in equity returns from 2009 to 2010
20 %
25 %
Even with announced cuts in tariffs, 2011 equity returns are expected to be above hi t i l l
15 %
historic levels
5 %
10 %
0 %Germany
(PP)Germany
(Res)France (BIPV)
California (Com)
Italy(Res)
Italy(PP)
California (Res)
Source: REC estimates
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Source: REC estimates
Renewable REC Ab t RECEnergy Corporation GROUP
About REC
SolarconSingapore
Conference2010REC – an integrated PV company
REC SolarREC WaferREC Silicon
Chemical process Casting & cuttingCell
Surface treatmentModule
AssemblyProject
development
Presence across the solar value chain createsPresence across the solar value chain creates strategic opportunities
Competitive positions improved through:
Transparent cost structure
Technology development & synergies
Applying best practices
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SolarconSingapore
Conference2010A history of growth
8 191
9,1569,000
10,000Start production in ScanCell
Aquired ASiMI
NOK million
6,426
8,191
5 000
6,000
7,000
8,000Start production in ScanModule
AquiredSiTech
1 270
2,454
4,334
2,000
3,000
4,000
5,000 Start production in ScanWafer
Established Solar Grade Silicon
0 10 25 50 159 432 7131,270
0
1,000
,
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Capacity expansions
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SolarconSingapore
Conference2010REC Silicon
Proprietary deposition technology REC Silicon produces silicon materials
for the electronics and the photovoltaic markets
Proprietary deposition technology –Fluidized Bed Reactor (FBR)
REC Silicon is a large player in the global silicon materials industry– Largest silane gas producer– Third largest polysilicon producer– Largest producer of high purity float zone
(FZ) polysilicon
Proprietary REC technology Energy efficient – 10% of Siemens energy usage Continuous productionp Lower cost Granular polysilicon is easy to handle
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SolarconSingapore
Conference2010REC Silicon – Moses Lake
Strong position in growing markets for Polysilicon and Silane
Proprietary FBR technology with lower energy consumption and better form factors
Strong growth in production from 8 000 MT in 2009 towards 17 000 MT in 2012
Experienced organization with 25 years of know-howy
Photo: REC production plant Moses Lake
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SolarconSingapore
Conference2010REC Wafer
Lowering our silicon consumption and A leading producer of multicrystalline
wafers for the PV industry
Lowering our silicon consumption and improving the solar efficiency of our products
Aiming to strengthen the position in the monocrystalline wafer segment
Industrialized mass production according to lean manufacturingaccording to lean manufacturing principles
Thinner wafers Thinner sawing wire New furnace technologygy Proprietary technology in each process step
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SolarconSingapore
Conference2010REC Solar
Investing in proprietary technology and A fast-growing producer of solar cells
and solar modules
Investing in proprietary technology and process improvements
Involved in solar systems integration in selected segments of the market
Strategic ambition is to develop into a leading global solar cell and moduleleading, global solar cell and module manufacturer, as well as project developer within selected segments of PV systems
Highly automated processes Increasing conversion efficiency Operational excellencep Economies of scale
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SolarconSingapore
Conference2010Manufacturing facilities and capacities
Narvik, NORWAY
Moses Lake USAGlava, SWEDEN
,
Cell plant ~180 MW capacity
Glomfjord, NORWAY
Multicrystalline wafer plant ~320 MW capacityMoses Lake, USA
g p y
Polysilicon (Siemens & FBR)plants ~13 500 MT capacity Silane gas capacity ~21 000 MT
Module plant ~150 MW capacity
320 MW capacity Monocrystalline wafer plant
~300 MW capacity
Herøya, NORWAY
Wafer plants – totalling ~1 1 GW capacityButte, USA
Tuas View, SINGAPORE Polysilicon (Siemens) capacity ~3 5 00
MT. Silane gas capacity ~7 500 MT
Wafer plants – totalling 1,1 GW capacity
Wafer plant ~740 MW capacity Cell plant ~550 MW capacity
M d l l t 590 MW it Module plant ~590 MW capacity
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SolarconSingapore
Conference2010Doubling the size of the company
REC Silicon REC Wafer REC SolarREC SiliconMT
REC WaferMW
REC SolarMW (modules)
20,000 3,000 800
15,000
2,000
600
10,000 400
5,000
1,000
200
02009 2011
02009 2011
02009 2011
Production Capacity Production Capacity Production Capacity
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Production Capacity Production Capacity Production Capacity
SolarconSingapore
Conference2010REC production plant – Singapore
W f 740 MWWafers ~740 MWCells ~550 MWModules ~590 MW
The construction project is >90 percent complete
CAPEX at completion estimated at € 1.4 billion – 22% below initial estimate
Excellent safety record for construction project with > 17 million man-hours
Photo: REC production plant Singapore
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SolarconSingapore
Conference2010
“I'd put my money on the sun and solar“I'd put my money on the sun and solarI d put my money on the sun and solar I d put my money on the sun and solar energy. What a source of power! I hope energy. What a source of power! I hope we don't have to wait till oil and coal runwe don't have to wait till oil and coal runwe don t have to wait till oil and coal run we don t have to wait till oil and coal run out before we tackle that.”out before we tackle that.”
Thomas Edison to his friends Henry Ford and Harvey Firestone (1931)Thomas Edison to his friends Henry Ford and Harvey Firestone (1931)
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