REC Silicon and Hanwha Solutions Reach Ten Year Solar Silicon Supply Agreement

• REC Silicon ASA, a Norwegian silicon producer, and Hanwha Solutions, part of Korea's Hanwha Group, have announced progress in finalizing a 10-year supply agreement for solar silicon production from the Moses Lake (Washington state) factory. This agreement is a major step forward for sustainable energy news and photovoltaic technology.

What happened?

REC Silicon ASA, a Norwegian silicon producer, and Hanwha Solutions, a part of Korea's Hanwha Group, have announced progress in finalizing a 10-year supply agreement for solar silicon production from the Moses Lake (Washington state) factory. The granular solar silicon produced in fluidized bed reactors (FBR) is to be sold in full to Hanwha Solutions, who will make a "significant" prepayment for this. The agreement is to be finalized in the coming months, with the startup of the Moses Lake facility scheduled for the fourth quarter of 2023, and full capacity expected by the end of 2024. (Source: PV Magazine)

Why does it matter? 

This agreement is a major step forward for sustainable energy news and photovoltaic technology. It is a crucial step in securing the offtake of production volumes, which is a prerequisite for reopening the Moses Lake facility. This agreement will ensure that REC Silicon will have a reliable, long-term customer for its solar silicon production, and that Hanwha Solutions will have a reliable source of supply for its needs. This agreement could also open the door for other companies to enter into similar supply agreements with REC Silicon, which could further increase the demand for solar silicon.

What's next? 

The parties are now working to finalize the complete contract with all operational details in the coming months. Once finalized, the contract will be announced. In the meantime, REC Silicon will continue to work on the reopening of the Moses Lake facility, which is expected to be completed by the end of 2024. This agreement could also lead to further agreements between REC Silicon and other companies, which could further increase the demand for solar silicon.