Strategic breakthrough for SolTech’s subsidiary , ASRE, in China.

 

A five-year cooperation agreement contract has been undersigned concerning the installation of solar energy units mounting to a total capacity of 100 MW (100,000,000 Watts), with 10 MW of this capacity planned to be constructed in 2016.  The customer is the HeNan Provincial Energy Conservation Co. Ltd., owned by the local government of HeNan Province and tasked with the mission of carrying out energy improving measures on all the buildings it owns. Henan, with a population of approximately 94 million people, is China’s most populated province.

Fully developed, this contract is estimated to generate an annual income of circa 165 million SEK ($19.412,000 US)*. The 10 MW capacity planned to be constructed in 2016 is estimated to yield an annual income equivalent to circa 16.7 million SEK ($1,964,706 US): SolTech’s stated goal of having an installed and operational capacity equivalent to 230 MW by the outset of 2019 continues to appear within reach.

ASRE’s income is consolidated in the SolTech concern’s balance statement, where earnings due ASP, SolTech’s minority (49%) partner in ASRE, are posted as the minority’s interest.

On the basis of this co-operation agreement, construction of a first solar unit for the production of 285 KW (285,000 watts) has already begun, with the unit expected to be in full operation in February.  Up and running, this installation is estimated to produce approximately 320,000 kWh, and the customer is obligated to buy all the electricity the system produces. Investment in the installation, which will continue to be owned by ASRE, mounts to circa 3 MSEK and, during the year 2016, this first installation alone will generate an estimated income equivalent to approximately 473,000 SEK. Over the installation’s 20-year lifetime, total accumulated income is estimated to reach approximately 9.5 MSEK ($1.120,000 US).

* Based on an exchange rate of 8.5 SEK / US dollar

CEO Frederic Telander observes in a report:

  • The contract agreement with HeNan Provincial Energy Conservation reinforces interest in the business model developed for ASRE, in the technique we work with, and in us as long-sighted partners.  We hope that we can continue to sign comprehensive and long-sighted co-operation contracts of this type; where – in addition to establishing a secure flow of business – they simultaneously lessen the need of a larger sales organization. The customer, in this case the highest provincial government body in Henan, not only saves money in an environment-friendly way, but – and this is clearly vital – also contributes to helping China reach its ambitious environmental goals.”

For more information, please contact: Frederic Telander, CEO SolTech Energy Tel; 08-441 88 46. email frederic.telander@soltechenergy.com

SolTech Energy in brief:
SolTech Energy develops and sells a solar energy system based on research carried out over several years at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology). The system is a part of a building’s outer shell; specifically, roofs and/or walls formed of glass (panels or glass plates) that function as both weather protection and sun-catchers for the production of heat, hot water and electricity. The assortment of suitable glass also includes unique thin-film solar cells in black and/or semi-transparent glass – or as isolated glass modules in various sizes and formats that allow for esthetic integration with a building’s outer shell.

SolTech Energy Sweden AB has approximately 5,600 shareholders and its shares are traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. The wholly owned subsidiary Wasa Rör T Mickelsson AB is also included in the parent concern. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.se.

Investment in China:
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy
(Hangzhou) Co. Ltd (ASRE), where SolTech is the (51%) majority owner and Advanced Solar Power Hangzhou Inc. the (49%) minority owner. The business model consists of having said jointly owned company, ASRE, responsible for the installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned facilities. During the beginning period, this model has first been implemented in Hangzhou in the province of Zhejiang, with a view to thereafter expanding to other regions in China. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term contract to buy all the electricity and/or thermal heat the relevant unit produces. The strategy is to build a backlog of orders for 2016 and beyond, with the goal of obtaining by the year 2019 an installed and operational capacity of approximately 230 MW, corresponding to a continuous yearly sales figure of approximately 400 MSEK ($47,000,000 US).

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