Heliene, a Canadian solar panel manufacturer, has unveiled its ambitious expansion plans for the United States, which include establishing a new state-of-the-art factory in Minnesota. According to the company's CEO, Martin Pochtaruk, the facility will not only produce modules but also solar cells, marking Heliene's first venture into cell production.
The decision to expand comes as a result of the positive incentives provided by President Joe Biden's Inflation Reduction Act, enacted last year. The legislation encourages domestic production of clean energy equipment through tax credits for both manufacturers and buyers. Heliene joins a growing list of companies committing to bolstering U.S. solar production in the wake of this legislation.
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The investment for this significant expansion amounts to approximately $145 million, and the facility will be strategically located in the Minneapolis-St. Paul area. Once operational, it is projected to have an impressive annual capacity of about one gigawatt of modules and 1.5 gigawatts of cells, effectively doubling the company's module production capacity.
This groundbreaking move has been made possible, in part, by a substantial investment from the New York-based Orion Infrastructure Capital (OIC). OIC contributed $5 million in equity to Heliene and a substantial $150 million in credit for the construction and operation of the new factory. Notably, this marks the first time Heliene has ever raised equity.
The CEO expressed enthusiasm for the expansion and underscored the significance of this venture for the company. As a family-owned and run business since 2010, these substantial investments demonstrate their commitment to making a meaningful impact in the renewable energy sector.
Orion Infrastructure Capital was drawn to Heliene due to the company's strong customer base and experienced management team, which has effectively navigated challenges in a competitive market faced with cheap imports.
Although the specific site for the new factory is yet to be finalized, Heliene expects to commence module production in 2024, with cell production following suit in 2025.
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To qualify for an additional 10% tax credit under the Inflation Reduction Act, 40% of a project's components must be sourced from within the United States. Heliene aims to achieve this by seeking domestic suppliers for other essential panel components, thus helping customers qualify for the bonus credit.
Italy's Enel and South Korea's Hanwha have also recently announced their plans to set up solar cell manufacturing operations in the United States, indicating a growing trend of solar companies seeking to leverage the Act's incentives and contribute to the nation's clean energy goals.
