May 20 2010
Apollo Solar Energy, Inc. (OTC Bulletin Board: ASOE) ("Apollo Solar" or "the Company"), a refiner and producer of high purity tellurium (Te) and tellurium-based metals for the solar photovoltaic (PV) industry and specific segments of the electronic materials market worldwide, in the People's Republic of China, today announced that the Company has signed an agreement with the Ningguo Municipal Government to build a 2MW demo solar power station in Ningguo City, Anhui Province, China.
According to the agreement, Apollo Solar will invest 60 MM RMB (US $8.75 MM) to build the 2 MW demo solar power station and will be responsible for the construction of the entire project, including planning, design, construction and installation of the solar power station.
The 2MW demo solar power station is expected to become operational in September 2010. The agreement provides for the payment of subsidies to Apollo Solar from central, provincial and local government entities in the PRC for electricity generated by the power station, as follows:
- 2.15 Yuan RMB (US $0.31) per kilowatt hour (kwh) during the first year of operation of the power station;
- 1.70 Yuan RMB (US $0.25) per kwh during the second year of operation of the power station; and
- 1.50 Yuan RMB (US $0.21) per kwh during the third and following years of operation of the power station, in accordance with the rules and regulations of the central government of China.
Apollo Solar believes that the availability of these types of subsidies could make solar power stations profitable and could attract potential investors to invest in commercial solar power stations.
"We are very pleased to sign the agreement with Ningguo Municipal Government to build the 2 MW demo solar power station, the first project of those contemplated by the non-binding letter of intent signed in April between Apollo Solar and the Ningguo Municipal Government" stated Mr. Renyi Hou, the CEO of the Company. "Apollo Solar has purchased 2 MW of thin film solar panels in the US and we expect the shipment to arrive at Ningguo City in mid- June of 2010. We then anticipate completing the installation of the 2 MW of thin film solar panels, and beginning testing of the operation, by the end of September, 2010."
"We believe that governmental support for the solar PV industry, including Cadmium-Telluride (CdTe) thin-film solar cells, could lead to the commercialization of solar power stations. At the Mediterranean Solar Plan Conference on May 11, in Valencia, Spain, the International Energy Agency, IEA, predicted that 20-25% of total electricity supply will come from solar power stations before 2050 if governments continue current subsidy policies for the solar PV industry, though current solar power is far below 1%." Mr. Hou commented. "Apollo Solar plans to procure high quality thin film solar panels with competitive pricing through OEM agreements which we believe will allow us to enter the downstream solar PV industry to build and operate solar power stations."