Chengdu, China (Vocus) April 22, 2010
Apollo Solar Energy, Inc. ("Apollo Solar" or "the Company"), a leading vertically integrated miner, 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 the Company has signed a non- binding Letter of Intent with the Ningguo City Municipal Government to enter into a future joint venture that would build and operate the Ningguo-Apollo Solar Energy Community, to be located in Anhui Province, China.
The non-binding Letter of Intent provides Apollo with an opportunity to become a significant shareholder in a future venture with the Ningguo City Investment Company that could demonstrate the cost-efficient use of solar energy on a community-wide scale. In accordance with the non-binding Letter of Intent, Apollo would exclusively manage and operate the construction of Ningguo-Apollo Solar Energy Community. Apollo would become a 51% shareholder of the joint venture, and Ningguo City Investment Company, Chengdu Zhongguang Photoelectric Corporation, and other investors would jointly own 49% of the shares of the venture. The new all-solar energy community will likely cover an area between 30 and 50 square kilometers.
The non-binding Letter of Intent contemplates the building, on a project- by-project basis, of a group of grid-connected solar power stations, economical lighting systems, and solar photovoltaic (PV) industrial parks to showcase a model community neighborhood using photovoltaic/thermal integrated buildings. The parties anticipate the aggregate investment to be made by the joint venture in creating the new community, including the building of a 10 GW grid-connected solar power station, will be between 60-100 billion Chinese Yuan (US $8.5-$14 billion), and will take between 6-8 years to complete.
Apollo believes this project will make Ningguo the first city in China to use solar energy as its primary source, integrating modern environmentally friendly and efficient solar energy, to realize the goal of creating a zero- emission city in China.
We believe that using clean and renewable energy sources, including solar energy, protects the earth through the restriction of carbon emissions," stated Mr. Renyi Hou, the CEO of the Company. "We also believe that governmental support for solar PV industry, including Cadmium-Telluride (CdTe) thin-film solar cells, will lead to higher wholesale volume production. As a major high-purity Te supplier, Apollo expects to provide material and technology that will improve CdTe thin film PV efficiency."
"Following our entry into another joint venture, in December 2009, with Bengbu Design & Research Institute for Glass Industry ("Bengbu"), a subsidiary of China Construction Material Group, the largest producer of glass material and cement in China, Apollo has become increasingly involved in the development of the solar photovoltaic industry," Mr. Hou commented. "By cooperating with other solar photovoltaic cell producers, we expect to take advantage of our exclusive source of high purity Te, CdTe, and other related photovoltaic materials, to manufacture more effective and more economical solar photovoltaic cells." Mr. Hou also noted, "Our first project of the venture will likely be to build group grid-connected solar energy stations in Ningguo City. If the project is successful, we anticipate extending the all- solar energy model into other cities in China and other countries. We believe the possible expansion of our business to the downstream solar photovoltaic industry will bring additional value to our shareholders."
About Apollo Solar Energy, Inc.
Apollo Solar Energy, Inc., through its wholly owned subsidiary, Sichuan Apollo Solar Science and Technology Co., Ltd, is primarily engaged in mining, refining and producing tellurium (Te) and high-purity tellurium based metals for specific segments of the electronic materials market. The Company's products include CdTe thin-film compounds, CIGS thin-film compounds, ultra- high purity metals and commercial-purity metals.
About Ningguo Municipal City
Ningguo is a county-level city in Anhui Province, China. The city has a population of over 380,000 and covers an area of 2,447 square kilometers. It is centrally located in eastern China with several highways that offer convenient transportation to Shanghai, Nanjing and Hangzhou, within 2 hours driving distance. Ningguo City is expected to be a test model county within the Yuanjiang City Area Industry Transfer Zone, as established by the Chinese government in January 2010, as part of a government strategy designed to encourage technology and industry transfers from the developed east coast of China to the mid-west under-developed areas of China. The Chinese Government is expected to give Ningguo City incentives to develop its solar energy industry and related applications.
Safe Harbor Statement
The statements contained in this press release that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates," or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, the statements regarding the Company's expected entry into a joint venture arrangement with the Ningguo City Municipal Government to create a solar energy community, and the Company's ability to provide material and technology that will improve CdTe thin film PV efficiency, are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including but not limited to, general economic conditions and regulatory developments, not within our control. The factors discussed herein and expressed from time to time in our filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed or implied by such statements. The forward-looking statements are made only as of the date of this press release, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstance.
For more information, please contact:
Dr. Jingong Pan, VP of IR
John Campo, IR consultant
Wall Street International
SOURCE Apollo Solar Energy, Inc.