KCC Corp. and Hyundai Engineering & Construction Co. were selected to build the facility, which will have a capacity to produce 3,350 metric tons a year of solar-grade polysilicon, the Saudi company said in a statement.
Privately owned Polysilicon Technology said the plant will be located in Al Jubail Industrial City 2, plans to triple the factory’s capacity as development of the site extends into future phases.
KCC Corporation, a global producer of polysilicon, is actually a 50 percent owner of PTC. The other partner is the joint venture is Mutajadedah Energy Company, a local Saudi Company established by Swicorp Joussour Company and Chemical Development Company expressly to invest in the solar energy development in Saudi Arabia.
“KCC is a very strong partner with tremendous technical and R&D capabilities and have great interests in investing in the kingdom,” said MEC Chairman Walid Al-Shoaibi. “They have existing polysilicon plants operating in Korea which will allow them to add significant value to the execution and operation of the project ensuring its success and timely start up.”
Ibrahim Al-Humaidan, Executive Director and Chief Executive of Riyadh-based PTC, said, “The Polysilicon Project in Jubail is only our first step. PTC intends to expand the plant to an annual capacity of 12,000 metric tonnes as well as continue further downstream into the manufacturing of Ingot and Wafers”.
The statement did not give a timeline for the plant’s construction nor did I give any hint as to whether the facility would supply polysilicon for export or for the domestic manufacture of panels.
Polysilicon is the main raw material used in the solar industry which is then converted into ingot, wafers and then into solar cells that are put into panels in order to generate electricity from the sun.
Saudi Arabia, holder of the world’s largest crude oil reserves, is seeking to diversify sources of energy to reduce its reliance on hydrocarbons.
As part of that effort Saudi Aramco, the world’s largest state-run company, entered into an agreement with Japan’s Showa Shell Solar K.K last year to develop a small-scale project for generating one to 2 MW of solar power in Saudi Arabia.
If the project is viable, the companies will form a joint venture in 2012, Aramco said in last year’s annual review.
Earlier this month Saudi Arabia announced plans for its largest "solar park" ever and shortly after that it announced plans to request funds from the UN's $100 billion climate change fund. In the
meantime, South Korea -- in an attempt to "green" the country and reduce pollution --announced $7.18 billion in energy improvements leading to a full-blown smart grid.
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