REC expands in Quebec

SANDVIKA, NORWAY, September 2, 2008. Renewable Energy Corporation ASA (REC) has announced Bécancour, Quebec in Canada, as the site for its next phase of silicon materials expansion.

The site will be developed in stages and could potentially hold four production units similar in size of the factory currently under completion in Moses Lake, Washington, USA.

At the same time as choosing Bécancour for its manufacturing expansion, the Norwegian company has signed agreements with hydro-electric power company Hydro Quebec, and the industrial park manager Société du parc industriel et portuaire de Bécancour (SPIB).

As the production of polysilicon is relatively energy intensive, one important reason for selecting Bécancour has been access to stable electricity supply based on long-term, predictable pricing. Also, the company prefers using renewable energy sources for its electricity.

The power contract with the hydro-electric power producer Hydro Quebec will run for 20 years at a predictable cost. In addition, REC will reap “other benefits” offered by SPIB. The agreement further assumes that total investments at the SPIB will exceed US$1.2 billion and that the total number of employees will exceed 300 people.

Construction is anticipated to start in 2010 with Phase I production capacity available in 2012.

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