SolTech Energy ’s subsidiary in China, ASRE, has signed an order with Shaoxing Longze Pipeline Co. Ltd. in Shangyu City. The order covers the installation of a 1 MW (megawatt) solar energy unit estimated to provide an annual income equivalent to approximately 1.71 MSEK (0.78 MEUR). Over the contract’s 25-year lifespan cumulative income is estimated to mount to approximately 42.75 MSEK (4.36 MEUR). With the inclusion of this order in the fiscal year 2016, ASRE has thus far booked orders mounting to 26.9 – 30.9 MW. As this year’s goal of 25 MW has been achieved, focus is now concentrated on achieving the goal set for 2017, namely: 50 MW of sold solar energy installations.
The installation’s annual production is estimated to be circa 1,000,000 kWh. Shaoxing Longze Pipeline Co. Ltd. is committed to buying all the electricity the system produces over 25 years. Investment in the installation, which continues to be owned by ASRE, amounts to approximately 10.07 MSEK (1.02 MEUR). Its completion is expected to takes place during the second quarter of 2017.
CEO Frederic Telander comments:
- Our focus is now on 2017’s goal of 50 MW. This past April we signed our first 25-year contract with a customer, and even on that occasion, the customer was also located in Shangyu City. This city lies between ASRE’s home-city, Hangzhou, and the city of Ningbo, where we already have eight customers. In short, this order further solidifies our position in the region and creates even more favorable conditions for conducting further business.
For more information, please contact: Frederic Telander, CEO SolTech Energy Tel; 08-441 88 46. Email: email@example.com
The information contained in this press release meets with the information SolTech Energy Sweden is required to make public according to 1.) law (1991:980) concerning trading with financial instruments, 2.) law (2007:528), concerning the financial instrument market, and/or 3.) the EU’s decree concerning market abuse. Said contained information was provided by the above-cited contact person for publication on December 1, 2016 at 07:00 CEST.
SolTech Enery 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 promote integration with a building’s outer shell.
SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Included in the concern are its jointly owned (51%) subsidiaries Advanced SolTech Sweden AB (publ.) ASAB, and Advanced SolTech Renewable Energy, Hangzhou Inc. (ASRE), as well as its wholly owned subsidiary Wasa Rör T Mickelsson AB. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com
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 majority (51%) owner and Advanced Solar Power Hangzhou Inc. (ASP) the minority (49%) 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. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, in combination with various forms of subsidies per produced kWh. The strategy is to build a backlog of orders for 2016 and beyond, with the goal of obtaining by the year 2019 an installed capacity of approximately 230 MW in full operation, generating current annual sales amounting to approximately 400 MSEK (40.1 MEUR).