Jan 23 2008
Quantum Fuel Systems Technologies Worldwide, Inc. today announced that it has completed the acquisition of a 25% equity stake in ASOLA Advanced and Automotive Solar Systems GmbH, a leading German solar energy technology company that develops and manufactures high quality and high-efficiency photovoltaic modules for a number of innovative applications, including commercial, residential and automotive.
Based on existing orders and capacity, ASOLA anticipates 2008 revenues in excess of 50 million Euros while generating positive net profits. Currently, ASOLA's order backlog extends for several years, building on the long-term solar cell supply agreement that ASOLA and Quantum entered into with prominent German solar cell manufacturer Ersol. ASOLA continues to expand production capacity at its German facilities to support the high growth the company is experiencing.
As previously announced, ASOLA has signed a long-term supply contract with Ersol Solar Energy AG for the procurement of 155 MW of high-efficiency silicon photovoltaic solar cells, starting in 2008. This agreement guarantees a supply of solar cells to Quantum and ASOLA, thereby avoiding any potential future disruptions due to polysilicon shortages, as have been recently experienced by the solar cell industry. Resulting sales from the supply agreement with Ersol are anticipated to generate US $500 million for ASOLA and Quantum. Quantum and ASOLA intend to jointly utilize the Ersol cells for the manufacture of high quality solar modules for commercial, residential, and automotive applications in both Europe and the United States. This guaranteed supply will enable the expansion of Quantum and ASOLA solar modules into Germany, Spain, Italy, and France as well as into the United States, beginning in California.
Solar energy demand has consistently grown in excess of 25 percent per year in Europe during the past 15 years, and is poised for a period of accelerated growth, especially in California. German solar energy companies have gained significant experience over the past decade in meeting the demand in Germany that consumes over 50 percent of the global solar photovoltaic module manufacturing capacity.
"We are pleased to announce the completion of the acquisition of a 25 percent stake in ASOLA. We believe ASOLA will add positive earnings to our bottom line and move Quantum closer to profitability. ASOLA, which has over 20 years of solar industry experience, has and will continue to provide us access to European alliances and relationships in the rapidly expanding European renewable energy market," said Alan P. Niedzwiecki, President and CEO of Quantum. "Demand for ASOLA's high-quality solar modules continues to grow in the expanding renewable energy markets in Germany, Spain, Italy, and France. Our goal is to produce and make these high-quality solar modules available in the United States as well."
"As a California-based company, we believe that Quantum, together with ASOLA, is well positioned to capitalize on the multi-billion dollar California Solar Initiative, which provides incentives for solar installations over the next decade for residential homes and commercial, industrial, and agricultural properties," added Mr. Niedzwiecki.