UK’s Awendio Eyes $725 Million Quebec Solar Plant

• Awendio Solaris eyes C$1B Montreal solar factory with R&D hub, 2.5 GW capacity, powered by cheap Hydro-Quebec. Financing, government aid and partnerships in motion amid grid constraints.

British startup Awendio Solaris plans to invest up to C$1 billion ($725 million) in a solar-cell and panel plant with an R&D center near Montreal, targeting 2,500 megawatts of annual capacity in its first phase. Quebec’s cheap hydro power is a key draw; the facility would need about 32 megawatts from Hydro-Quebec, with additional needs met by on-site solar.

The project faces power-supply scrutiny amid Hydro-Quebec constraints and still seeks financing. Backers include Awendio’s management, two U.S. family offices, and Canadian First Nations groups; National Bank of Canada is assembling a funding consortium. Awendio is pursuing government aid and has partnered with RCT Solutions and AtkinsRéalis.

How will Awendio’s Montreal solar plant overcome Hydro-Quebec constraints and secure financing?

• Stage the ramp: start with a lower-nameplate production line powered largely by on‑site solar-plus-storage, then add lines as Hydro‑Québec (HQ) allocates firm capacity; design equipment for modular, plug-and-play expansion.
  
• Blend firm and non‑firm power: secure a baseline firm supply from HQ and use curtailable/non‑firm blocks for peak production; tune output to HQ’s demand-response calls with automated load shedding.
  
• Peak shaving and load shifting: install 50–100 MWh of battery storage to cap grid draw at contracted limits; run energy-intensive steps (furnaces, deposition, lamination) during off-peak/night windows under time-of-use tariffs.
  
• Behind-the-meter generation: build a sizable rooftop/ground-mount PV array tied to a DC-coupled storage system to cover daytime process loads and auxiliary systems, reducing net draw during HQ peak periods.
  
• Microgrid controls: deploy an energy management system that co-optimizes grid, PV, and batteries; maintain spinning reserve via batteries to avoid process interruptions during curtailment events.
  
• Interconnection strategy: fund required substation upgrades up front, accept interim non-firm interconnect while awaiting firm capacity, and use dynamic line rating and advanced metering to meet HQ’s grid-integration criteria.
  
• Thermal energy buffering: add thermal storage (e.g., molten salt or phase-change materials) for process heat to flatten electrical demand from furnaces and dryers.
• Contract structure: negotiate a curtailable/interruptible rider with economic incentives; incorporate penalties/bonuses aligned with HQ’s capacity constraints.
  
• Power risk hedging: lock in multi-year tariff certainty and procure renewable energy certificates to meet customer ESG requirements without increasing grid load.
  
• Government support stack: pursue federal Strategic Innovation Fund contributions, the Clean Technology Manufacturing Investment Tax Credit, accelerated capital cost allowances, and Quebec’s investment tax credits/loan guarantees via Investissement Québec.
  
• Export and credit enhancements: obtain EDC/guarantor backstops for working capital and equipment imports; explore vendor financing with key toolmakers tied to performance milestones.
  
• Project finance structure: raise a senior secured construction-to-term loan with a mini-perm tranche; add a subordinated/mezzanine layer from impact and infrastructure funds to reduce weighted average cost of capital.
  
• Green bonds/sustainability-linked loans: issue at the holdco or projectco level with KPIs tied to energy intensity and domestic-content output to attract ESG investors.
  
• Offtake-backed financing: secure multi-year purchase agreements with North American module buyers (with take-or-pay or prepayment components) to anchor bankability and inventory financing.
  
• Indigenous partnership capital: expand equity participation by First Nations partners and seek loan guarantees via Indigenous financial institutions to de-risk the senior debt.
  
• Risk mitigants: EPC wrap with performance guarantees, completion support, political-risk and business-interruption insurance; FX hedges for equipment purchased in EUR/USD.
  
• Working capital facilities: arrange inventory and receivables lines aligned to production cycles; add a revolving credit facility for polysilicon and glass procurement.
  
• Compliance and permitting: front-load environmental approvals and community benefits agreements to shorten critical-path timelines, unlocking milestone-based disbursements.
• Talent and uptime: invest in R&D-line digital twins and predictive maintenance to raise throughput per kWh, effectively “creating” capacity within HQ limits.