Dive Temporary:
- Photo voltaic cell producer Meyer Burger has shelved building plans for its $400 million plant in Colorado Springs, Colorado, citing monetary infeasibility, in accordance with a information launch.
- The photo voltaic cell producer determined to cut back the dimensions of its debt financing plans, tied to the Inflation Discount Act, which can decrease the funds out there for building and reduce its medium-term profitability targets, in accordance with the corporate.
- Excessive rates of interest and financial uncertainties are more and more resulting in delays for main building tasks throughout numerous sectors, together with photo voltaic and EV manufacturing, as builders reassess monetary methods.
Dive Perception:
Meyer Burger initially deliberate to fund a part of the development of its photo voltaic cell manufacturing facility through the use of the 45X tax credit from the Inflation Discount Act, in accordance with the corporate. These credit will be monetized, transformed into money or used to cut back the corporate’s tax liabilities, which in flip would assist finance the mission.
However because of monetary and market circumstances, Meyer Burger has determined to cut back the quantity of debt it initially supposed to lift utilizing these tax credit. In different phrases, the photo voltaic cell producer is scaling again the financing it hoped to safe.
That can immediately impression the funding out there for its building tasks.
“The deliberate building of a photo voltaic cell manufacturing facility in Colorado Springs, Colorado, is not financially viable for the corporate because of latest developments and the mission will due to this fact be discontinued,” in accordance with a Monday firm assertion. “The deliberate cooperation with a U.S. expertise group won’t be applied at current in view of the revised technique.”
Meyer Burger initially deliberate to transform the previous Intel semiconductor plant right into a $400 million photo voltaic cell facility in Colorado and broaden manufacturing capability at its Goodyear, Arizona, web site. Each tasks have now been suspended, in accordance with the corporate.
The photo voltaic cell producer’s present cell manufacturing web site in Thalheim, Germany, will stay operational and proceed to type the spine of Meyer Burger’s photo voltaic cell provide, in accordance with the discharge.
