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.
Chengdu, China (Vocus) May 20, 2010
Apollo Solar Energy, Inc. (OTC Bulletin Board:ASOE.ob - News) ("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."
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 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 building of a 2 MW demo solar power station and receipt of related government subsidies 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