French Oil Company Buys 60% of US SunPower Solar for $1.38bn

French oil giant Total is buying up to 60% of US solar manufacturer and project developer SunPower for $1.38bn, and will extend the US PV manufacturer a $1bn credit facility.

The deal, which the companies position as a “broad strategic relationship”, would represent among the largest plays yet by an oil supermajor in solar and could be a boon to other PV companies. It follows closely on General Electric’s $600m bet on solar, announced earlier this month.

Philippe Boisseau, president of the Total Gas and Power Division, says the world is undergoing a “long-term transition in which renewable energies will take their place alongside conventional resources... Today, Total is executing on its strategy to become a major integrated player in solar energy.”
SunPower chief executive Tom Werner says the deal would help “accelerate our growth and solidify our position in the increasingly competitive solar sector”.

The company makes among the highest-efficiency solar panels, but is not a top-10 player in terms of market share.

SunPower has developed a major project development business and recently reported a near-term utility scale project pipeline of 1.5GW with another 3.5GW of projects for which it has site control.
Under terms of the credit support, Total will guarantee up to $1bn of SunPower’s obligations regarding letters of credit related to its utility power plant and large commercial installation business. Says Werner, “Our relationship with Total will improve our capital structure enabling SunPower to accelerate our power plant and commercial development businesses, and expand our manufacturing capacity with lower cash requirements”.

SunPower reported sales of $937.1m in its fiscal 2010 fourth quarter and net income of $152.3m. In February, the time of its most-recent quarterly report, the California company was expecting 2011 revenue of $2.8bn-2.95bn, up as much as 32% from 2010, on shipments of 825MW-920MW.
Boisseau says Total spent two years evaluating multiple solar investments before going forward with SunPower.

The transaction, described as a friendly tender offer, involves a Total subsidiary purchasing up to 60% of SunPower’s Class A and B stock for $23.25 a share, a premium of more than 46% on the Wednesday closing price of the A shares. It values SunPower at $2.3bn.

The companies plan to collaborate on solar research and development. And SunPower expects to benefit from Total's global footprint and balance sheet.

The boards of both companies have approved the transaction and the tender offer is to begin within 10 business days. A minimum of 50% of the outstanding shares of SunPower must be tendered for the transaction to go ahead. Total may purchase more SunPower shares in the future. The deal must also pass muster with US and European regulators.

SunPower’s existing management team is expected to remain intact after the transition. Total will nominate the majority of SunPower directors.

DOE Provides $1.187 B Loan Guarantee for 250 MW Calif Project

SunPower Corp., sponsor of the 250 MW California Valley Solar Ranch power plant, says that the project has been offered support via a conditional commitment for a loan guarantee of up to $1.187 billion from the U.S. Department of Energy (DOE). The project is under development in San Luis Obispo County, Calif.

NRG Solar, a subsidiary of NRG Energy Inc., will assume all ownership and financing responsibilities for the project, subject to certain conditions. SunPower will design, build, and initially operate and maintain the solar power plant.

Construction is expected to start in the second half of this year, contingent on permitting and financing, with a portion of the project expected to begin operations by the end of this year and the balance coming online in 2012 and 2013.

SOURCE: SunPower

SunPower Sells 13 MW Solar Project in Italy

SunPower Corp. has completed the sale of its 13 MW Solare Roma solar power plant to Allianz Renewable Energy Partners IV Ltd., a wholly owned subsidiary of Allianz SE.

SunPower designed and built the solar power plant, which is located in the municipality of Anguillara in Italy, and will provide ongoing operations and maintenance services for the new owner.

SOURCE: SunPower Corp.

SunPower Announces Record Cell Efficiency

SunPower has announced that it has produced a full-scale (mono-crystalline) solar cell with a sunlight to electricity conversion efficiency of 24.2 percent at its manufacturing plant in the Philippines.

This is a new world record, confirmed by the U.S. Department of Energy's National Renewable Energy Lab (NREL), for large area silicon wafers.

Source:  Solar Daily.   Read full article here.

SunPower Arranges $75 Million Loan Commitment from IFC

SunPower Corp. has secured a $75 million loan commitment from IFC, a member of the World Bank Group. The company's subsidiary, SunPower Philippines Manufacturing Ltd. (SPML), is partnering with IFC to finance SPML's operations in the Philippines.

"SunPower's partnership with IFC will enable us to drive further improvements to our manufacturing processes, which will allow us to continue delivery of the highest-efficiency solar cells to the global market," states Dennis Arriola, SunPower's executive vice president and chief financial officer. "We have been working closely with IFC for more than a year to secure this financing, and we hope to identify additional opportunities in the future."

Under the terms of the loan commitment, SPML can draw up to $75 million over the next two years. The loan must be repaid seven years from the draw-down date.

SOURCE: Solar Industry Magazine

SunPower Corp Now Offers PV Panels with 19.5% Efficiency

SunPower Corp. has unveiled its new SunPower E19 Series solar panels, a product line that offers modules in a 96-cell or 72-cell configuration, with efficiencies of 19 percent or greater.


The SunPower E19 Series includes the E19 318-watt, 96-cell solar panel with an efficiency rating of 19.5 percent and the E19 238-watt, 72-cell solar panel with an efficiency of 19.1 percent.


The company said the modules feature larger, more powerful all-back contact solar cells that deliver three percent more surface area per cell, boosting panel efficiency by reducing unutilized space. The panels also have an anti-reflective coating that allow for more diffuse off-angle light to be captured, generating more energy per rated watt than a conventional solar panel.


Source:   Renewable Energy World - Read full article here.