Shaw to build Hoku polysilicon plant

Hawaii's Hoku Scientific (Nasdaq: HOKU) said today it contracted The Shaw Group (NYSE: SGR) to build its planned polysilicon plant in Pocatello, Idaho (see Hoku Scientific getting into silicon production).

The $260 million project is expected to handle 2,000 metric tons per year.

Hoku said its plan to produce between 2,000 and 3,000 metric tons per year has not changed. It said the facility will be oversized in certain areas, to allow up to an additional 1,000 metric tons of polysilicon per year.

Hoku said today's deal is a time and materials contract with additional incentives if certain construction schedule milestones and cost targets are met.

The schedule calls for the first reactors to be operational in the second half of 2008, mechanical completion by Jan. 31, 2009, and final completion by May 31, 2009.

Hoku said Shaw will handle engineering, procurement and construction management on the plant.

"Signing an EPCM contract was an important component in order to construct our polysilicon plant and a necessary step for debt financing," said Dustin Shindo, chairman, president and CEO of Hoku.

Louisiana's Shaw Group is one of the largest engineering and construction contractors for the power generation market.

Hoku today also named Washington's JH Kelly as the general contractor on the project.

The $120 million contract with JH Kelly has milestone incentives of up to an additional $5 million.

JH Kelly provides HVAC and plumbing services to commercial facility owners and acts as a self-performing industrial general contractor at process plants throughout the greater Pacific Northwest.

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