German Firms Join for Solar Thermal Push in the USA
August 18th, 2009 – Steve Gelsi reports on MarketWatch that German firms Solar Millennium AG and MAN Ferrostaal AG said they formed a joint venture to build up to 3 utility-scale plants in Southern California at a cost of about $1 billion each.
At least one other major project in Nevada is also on the drawing board, with Solar Millennium going from building the large-scale Andasol solar project in Spain to the United States, eyeing a new $2.3 billion tax credit from the Obama administration for renewable-energy equipment manufacturers.
Solar Millennium will own 70% and MAN Ferrostaal’s U.S. subsidiary, MAN Ferrostaal Inc. of Cleveland, will own 30% of the new venture, called Solar Trust of America LLC.
Pending approvals from state-utility regulators and others, Solar Trust of America LLC hopes to win financing to build plants that produce about 242 MW each — enough power for 80,000 homes, through parabolic-trough technology that converts heat from the sun into steam to drive power generators.
Solar Trust of America obtained power-purchase agreements for up to
726 MW with Southern California Edison from Solar Millennium LLC of Berkeley, Calif., the U.S.-based arm of Solar Millennium AG headed up by Rainer Aringhoff.
In the case of Solar Trust of America, the 3 plants now in the works would employ about 800 workers each.
“We expect to generate sustainable revenue throughout the value chain by developing, constructing and operating the plants, while helping
the region meet its renewable-energy goals and stimulating its
economies,” Solar Trust of America said in a statement. Solar Millennium on June 17 announced the execution of power-purchase
agreements with Southern California Edison, a unit of Edison International (EIX). The 20-year agreements are subject to approval by
the California Public Utilities Commission. These solar-thermal power plants are expected to begin operation between 2013 and 2014.
Solar Millennium’s solar-thermal plants channel daytime energy into a tank filled with molten nitrate-based salt, which releases heat during
the night. Over the summer months, the 3 plants generate electricity 24 hours a day.
