Suntech closes Nitol Solar investment

Large solar manufacturer Suntech Power Holdings (NYSE: STP) has closed a previously announced $100 million aggregate minority equity investment into Russian polysilicon producer Nitol Solar.

Suntech first acknowledged its intent to do the deal in March (see Solar power wheeling and dealing.)

The minority investment coincides with two new investments of $25 and $50 million into Nitol from International Finance Corporation (IFC), a part of the World Bank.

News of the deal's closure was accompanied by positive test results of initial batches of polysilicon samples from Nitol.

Funds raised from Suntech and IFC are to help Nitol keep pace with construction costs for its new production facilities being built in Irkutsk, Russia. Nitol’s stated goal is to scale its production facilities to deliver 3,700 tons in 2009.

In the spring of this year, Suntech announced it would expand the terms of a seven year polysilicon supply agreement with Nitol Solar, starting in 2009. The terms of that agreement call for Nitol to substantially increase the volumes of polysilicon shipped in those seven years.

China plans to invest $200 billion over the next 15 years in renewable energy projects and technologies, according to recent research reports. The long term commitment by China is part of its stated efforts to break dependence on imported energy supplies.

Public solar market darling Suntech now claims to be the leading solar module maker in the world, eclipsing former leader Sharp of Japan.

Merrill Lynch analyst Mark Heller has noted that solar startups raised more money in 2007-2008 than Internet stocks did at the peak of the dot-com bubble.

Cleantech developments making news in the past 24 hours

• Qteros claims 15-fold improvements in cellulosic ethanol yield
• Solairedirect raises €20M to move into commercial solar
• Intel, Numonyx open $20M water treatment plant in Israel
• Booming data-center business creates troubles for India

View the last week of cleantech developments here | Subscribe to full feed