EGN NEWS DESK
A manufacturing facility in Moses Lake, Wash., that shut down in 2019 will quickly resume transport a crucial ingredient utilized in most photo voltaic panels that for years has been made virtually completely in China.
The revival of the manufacturing facility, which is owned by REC Silicon, may assist obtain a longstanding purpose of many American lawmakers and vitality executives to re-establish an entire home provide chain for photo voltaic panels and cut back the world’s reliance on crops in China and Southeast Asia.
REC Silicon reopened the manufacturing facility, which makes polysilicon, the constructing block for the massive majority of photo voltaic panels, in November in partnership with Hanwha Qcells, a South Korean firm that’s investing billions of {dollars} in U.S. photo voltaic panel manufacturing. As a part of the deal, Hanwha mentioned this month that it had develop into the most important shareholder in REC Silicon, which is predicated in Norway.
Executives on the firms say they reopened the manufacturing facility partly due to incentives for home manufacturing within the Inflation Reduction Act, President Biden’s signature local weather legislation. They expressed hope that their choice would additionally encourage different firms to revive manufacturing of a expertise that was created within the United States about 70 years in the past.
“As a complete, the United States was No. 1,” mentioned Kurt Levens, chief govt of REC Silicon. “People overlook that. You want extra cell manufacturing that’s outdoors China.”
Factories in China and Southeast Asia produce greater than 95 % of the photo voltaic panels that use polysilicon and a lot of the elements that go into these units. Chinese producers are so dominant that the majority producers within the United States had stopped producing polysilicon, together with REC Silicon.
Industry executives say the Chinese authorities’s tariffs on photo voltaic imports and the intensive monetary and different help it has provided home producers over time have made it very troublesome for firms elsewhere to compete. A smaller REC Silicon plant in Butte, Mont., and two different main firms — Hemlock and Wacker — nonetheless make polysilicon within the United States, however their merchandise are largely utilized in semiconductor chips.
The Biden administration has used the Inflation Reduction Act and different insurance policies to attempt to revive the U.S. photo voltaic manufacturing business. That has spurred extra manufacturing of photo voltaic panels and different renewable vitality merchandise.
But the administration’s efforts have been undercut just lately by a pointy enhance within the manufacturing of photo voltaic panels and their elements in China and a giant drop in costs of these merchandise. That has been good for patrons of panels, like vitality firms which can be constructing photo voltaic farms, however has harm U.S. producers.
“Various commerce actions, oversupply, dumping principally made it subsequent to unimaginable to export polysilicon,” mentioned Michael Carr, govt director of the Solar Energy Manufacturers for America Coalition, a commerce group. “The polysilicon business actually went by way of onerous instances.”
The American Alliance for Solar Manufacturing Trade Committee, a bunch of photo voltaic producers that features Qcells and REC Silicon, petitioned the U.S. International Trade Commission and the Department of Commerce on Wednesday to research doubtlessly unlawful commerce practices by Cambodia, Malaysia, Thailand and Vietnam and impose increased tariffs on merchandise they export to the United States. The grievance focuses on firms which have their headquarters in China.
In addition to the allegations within the petition, photo voltaic producers have raised considerations about using pressured labor in manufacturing of polysilicon in China and different Southeast Asian nations, which the businesses say has helped suppliers promote their merchandise at low costs. Many firms within the photo voltaic business have pledged to keep away from merchandise that depend on pressured labor, however the sources of panels and their elements will be onerous to hint and confirm.
The solely U.S. photo voltaic producer that has been in a position to preserve a wholesome market share within the business is First Solar, which produces skinny movie panels that don’t use polysilicon.
Researchers and firms are growing different applied sciences, however polysilicon panels, which had been created at Bell Labs in 1954, stay “the spine of the silicon photo voltaic cell,” mentioned Yogi Goswami, an engineering professor on the University of South Florida and the editor in chief of Solar Compass, a journal of the International Solar Alliance. “Innovative folks within the United States discovered one thing that no person else knew may very well be achieved.”
Qcells mentioned it will take one hundred pc of the polysilicon that REC Silicon produced in Moses Lake and deliberate to promote photo voltaic panels that had been produced solely inside the United States. The firm makes photo voltaic panels in Georgia and introduced in January 2023 that it will make investments $2.5 billion to broaden its presence in that state.
REC Silicon processes silicon right into a polysilicon, a granular substance that resembles black peppercorns. When the corporate delivers its product later this quarter, Qcells will flip these granules into ingots after which slice these into photo voltaic wafers that might be assembled into panels that may be mounted on roofs or open land.
REC Silicon started ramping up operations in November, hiring about 200 folks and increasing the manufacturing facility, mentioned Mr. Levens, the chief govt. The plant sits on 200 acres in Moses Lake, an agricultural and industrial city roughly in the midst of Washington.
“It’s a cleaner, decrease threat, and finally having the aptitude of doing it domestically is a long-term sensible answer,” mentioned Danielle Merfeld, international chief expertise officer for Qcells. “We are a small fraction of the home alternative. It ought to give not solely policymakers however different photo voltaic producers the boldness to make the funding. There’s room for lots of photo voltaic capability to develop on this nation.”
Chuck Sutton, REC Silicon’s vp of world gross sales and advertising and marketing, mentioned he had by no means given up on the ability, which started manufacturing in 1984. “My focus the final a number of years was discovering away to restart this plant,” he mentioned. “We simply sort of saved making an attempt to maintain all of it collectively.”
During a tour of the manufacturing facility this week, scores of crates crammed with packing containers of polysilicon granules had been seen on the ground, able to be shipped. REC Silicon executives mentioned they hoped this was simply the beginning of a brand new wave of development for the plant: The firm owns one other 260 acres that they mentioned may very well be used to broaden operations.
Executives mentioned they might search for alternatives to supply their product to extra clients like Qcells which can be occupied with producing ingots and wafers within the United States. Mr. Levens mentioned the federal government would possibly want to offer extra incentives to put money into manufacturing.
“It’s actually necessary for us as a rustic to have the ability to maximize when it comes to the alternatives introduced by the Inflation Reduction Act,” he mentioned. “Maybe there must be additional belts and suspenders when it comes to how to do that.”
