Aker Horizons and Hanwha Solutions Join Forces in REC Silicon to Explore US Solar Value Chain Expansion

Aker Horizons and Hanwha Solutions Join Forces in REC Silicon to Explore US Solar Value Chain Expansion

18 Nov 2021 07:30 CET

Aker Horizons ASA's wholly owned subsidiary Aker Horizons Holding AS ("Aker
Horizons") has today entered into an agreement with South Korea's Hanwha
Solutions Corporation ("Hanwha Solutions"), one of the leading solar PV
manufacturers in the US, and with REC Silicon ASA ("REC Silicon").

Hanwha Solutions will acquire 21,891,275 shares in REC Silicon from Aker
Horizons and will subscribe for 48,213,001 new shares in REC Silicon through a
private placement in REC Silicon. Both transactions are conditional upon each
other and will be completed simultaneously, and are done at the same share price
of NOK 20 per share.

The private placement will provide approximately NOK 964 million in proceeds to
REC Silicon, and will be implemented based on the existing authorization granted
to the board of REC Silicon. The share sale will provide proceeds to Aker
Horizons Holding AS of approximately NOK 438 million. Following the transaction,
Aker Horizons and Hanwha Solutions will each own approximately 16.67 percent of
the shares in REC Silicon.

"Aker Horizons develops industrial scale solutions to contribute towards meeting
Net Zero by 2050 or sooner," said Kristian Røkke, Chief Executive Officer of
Aker Horizons. "REC Silicon is the lowest CO2 footprint producer of polysilicon
globally, and we see further potential for positive impact through the
development of a US solar value chain. We welcome Hanwha Solutions as a
shareholder and partner in the development of REC Silicon with their extensive
capabilities and ambitions."

The transaction brings together two of the leading producers in different parts
of the solar PV value chain. Hanwha Solutions is one of the world's largest
solar PV manufacturers with a total cell manufacturing capacity of 10GW
globally. The company provides high-quality solar PV panels to the residential
market through their wholly owned brand Q CELLS, which holds a 25 percent market
share in the US[1]. The company operates one of the largest solar module
factories in the US with an annual production capacity of 1.7GW, corresponding
to 12,000 PV modules per day.

REC Silicon is a leading producer of advanced silicon materials, delivering high
-purity polysilicon and silicon gas to the solar and electronics industries
worldwide. Operating two polysilicon manufacturing facilities in the US, the
company has an annual production capacity of 20,000 MT. REC Silicon's highly
advanced and efficient FBR production process at Moses Lake uses significantly
less energy compared to the traditional process. Using hydropower-based clean
energy, REC Silicon can produce low-cost polysilicon with a low carbon
footprint.

The transactions are expected to strengthen REC Silicon's financial position and
ensure that REC Silicon has the necessary resources to reopen its FBR facility
in Moses Lake, Washington, and enable valuable investment opportunities in
Butte, Montana. Hanwha Solutions' investment represents a step towards
establishing a highly efficient, low carbon solar value chain in the US and to
ensure that REC Silicon plays an integral role in these efforts.

The Solar Energy Manufacturing for America (SEMA) Act currently being considered
in the US Congress is aimed specifically at encouraging strategic investments in
US manufacturing capabilities. This transaction clearly demonstrates the
potential to build solar manufacturing capabilities in the US quickly and
efficiently - which is the primary objective of the proposed SEMA Act. The
eventual passage of the legislation will support the parties' ambitions to
establish a comprehensive US solar value chain, from production of polysilicon
to fully assembled solar modules.

Completion of the transactions is expected to occur early in the first quarter
2022, subject to customary anti-trust filing in the US.

1. Wood Mackenzie Power & Renewables

For further information, please contact:

Ivar Simensen, Communications, Aker Horizons

Tel: +47 46402317

Email: [email protected]

About Aker Horizons

Aker Horizons ASA is a planet-positive company dedicated to developing companies
within renewable energy and other technologies that reduce emissions or promote
sustainable living. The company is listed on the Oslo Stock Exchange and
majority owned by Aker ASA. Aker Horizons owns stakes in Aker Carbon Capture,
Aker Clean Hydrogen, Aker Offshore Wind and Mainstream Renewable Power.

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Source

Aker Horizons ASA

Provider

Oslo Børs Newspoint