PHOTON International The Photovoltaic Magazine

Expansion plans vague as Evergreen reveals $5 million credit line

Evergreen Solar Inc. has announced a deal in which its banker, California-headquartered Silicon Valley Bank (SVB), will provide the string-ribbon PV company with a revolving credit line worth $5 million for one year.

	© Evergreen Solar Inc.
Over there?: While Evergreen is completing its switchover to new Gemini double-ribbon furnaces in Massachusetts, it has set its sights on Europe for capacity expansion of around 50 MW.

But while Evergreen promoted the agreement in an Aug. 27 press release as supporting its »ongoing expansion plans,« the company is being very secretive about its announced goal of adding 40 to 50 MW of capacity – possibly with a new factory in Europe where it currently sells about 65 percent of its product, or striking a partnership with another company to lay down modules for Evergreen.

Richard G. Chleboski, Evergreen vice president and CFO, says when the company reaches its production capacity of 15 MW as Evergreen finalizes its switchover to double-ribbon furnace technology and completes a second production line at its Marlboro facility, its output will still be »pretty small compared to the overall industry.« Characterizing the $5 million of credit from SVB as »a good start,« he admits Evergreen will have to raise about $100 million if it wants to set up its own factory, or somewhat less if Evergreen strikes a deal with a partner for module production. »Our desire is to find a partner with complimentary skills,« says Chleboski, one that is able to work with its unusual dimensions rather than traditional sawn wafers, leaving Evergreen to focus on wafer and cell production. »If we can't find a good deal, we'll expand independently,« he says, adding that Evergreen has held »preliminary discussions« with companies not only in Europe but also in Asia and North America.

Chleboski wants to firm up expansion plans by the end of the year or early 2005. While there is no guarantee that SVB will extend its credit beyond the $5 million, he says »both of our expectations are that it will continue.«