REC Signs $1 Billion Worth Long-Term Monosilane Supply Contracts
July 24, 2008
Norway-based Renewable Energy Corporation has signed long-term agreements valued at approximately $1 billion to supply monosilane gas to distributors up to 2014. The gas is used in the solar module manufacturing industry.
The deals were contracted to Renewable Energy Corporation’s (REC) monosilane gas production and marketing division REC Silicon, by existing customers. These supply agreements are structured as take-or-pay contracts with set pricing and volumes for the entire term.
REC noted that the set price in the contracts is on an average 15% higher than the current market price for the gas. The supply contracts have a built-in annual price adjustment component. The terms also provide for the supply of additional volumes.