Follow-up order for Sol Tech’s subsidiary, ASRE, in HeNan Province

 

Under the terms of the earlier publicized five-year cooperation agreement contract made with HeNan Provincial Energy Conservation Co. Ltd., ASRE is now installing additional solar energy units on the local government’s building properties totaling 3-5 MW (dependent on the extent of suitable roof space on the selected buildings). The installation is estimated to be completed during the second quarter of 2016, and provide an annual income of approximately 5.25 – 8.74 MSEK ($618,000 – $1,028,000 US)*. Over the installations 20-year lifetime, total accumulated income is projected to mount to approximately 105 – 75 MSEK ($12.4 – $20.6 million US).

This installation will be the second to be constructed under the cooperation agreement contract and is estimated to produce circa 3,300,000 – 5,500,000 kWh annually, dependent on the size of the final installation. The customer is committed to buying all the electricity the system produces. Investment in the installation, which continues to be owned by ASRE, mounts to circa 30 – 50 MSEK ($3.5 million – $5.9 million US). The first installation constructed under this cooperation agreement, with an electrical production capacity of 285 KW (285,000 Watts), was put into operation in February 2016.

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

CEO Frederic Telander comments in a report:

  • We note there is an unmistakable hurry in China with respect to replacing fossil energy sources, such as oil, coal etc., with renewable energy sources. HeNan Provincial Energy Conservation waited until the first installation was put into operation, as planned, before the company struck affirmatively with this large order. We are thankful and proud that the customer expressed its support for us as supplier with yet another order, and we hope that in the future we will get the opportunity to undersign similar comprehensive and long-range cooperation agreements in other provinces as well.

The cooperation agreement contract with HeNan Provincial Energy Conservation Co. Ltd. (HPEC)

HEPC’s mission is to carry out energy improving measures on all building properties owned by the local government in HeNan Province.  HeNan, with its 94 million citizens, is China’s most populated province. The cooperation agreement contract that was concluded in January 2016 covers solar cell installations on the province government’s building properties up to 100 MW over a five-year period, beginning with the installation of 10 MW in 2016. The customer is committed to buying all the electricity generated by the installations over a period of 20 years. Fully utilized (i.e. with the completed installation of 100 MW), the contract is computed to generate an annual income of approximately 165 million SEK ($19.4 million US).

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), whereSolTech 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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