MBM to build $400m solar-grade polysilicon plant
MBM Holdings has announced the formation of MBM Solar Holding, which will build a $400 million solar-grade polysilicon plant in the UAE.
The plant will have a total capacity of 2,500 tonnes per annum of high-quality product and is expected to start production in early 2012.
The project will be developed jointly with ERC Private Limited Singapore, which has extensive experience of developing similar plants. It will utilise ERC's existing designs that will shave off at least 18 months from a typical project lead-time.
The project will be the first upstream plant of its kind to be constructed in the UAE and has synergies with Abu Dhabi's focus on downstream solar projects.
Currently, MBM is in negotiations with authorities for land and power for the project. It will be constructed on an area of about 250,000 square metres.
MBM Holdings will soon give out a mandate to an investment bank to seek the residual parts of equity and debt for the project. The feasibility study has been conducted and the project engineering partners have been identified.
This state-of-the-art plant will use the latest equipment and produce polysilicon at prices competitive to Chinese or Middle East plants being planned.
Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, Chairman of MBM, said: "ERC Singapore is our equity and technology partner given their worldwide networks, technical-commercial expertise, existing management team and their ability to plan and execute a project in record time."
He said MBM Solar Holding will form the anchor for supporting other private sector developers in the solar downstream market.
Kassym Abzhanov, Director of ERC, said: "The project will be the bank's first major strategic initiative in renewable sector and will benefit from the world-class infrastructure available in the UAE. We are proud to work with MBM Holdings who have a track record in Dubai and a strong reputation for excellence. This project will be lucrative for sovereign and private investors in Mena."