French oil company is to buy 60% of SunPower Corporation, the second biggest solar panel manufacturer in America
Total, one of the world's largest oil companies, is to make a $1.38bn (�800m) investment in solar power reversing a trend that has seen Shell and BP cut back their involvement in green energy.
France's biggest company is to purchase 60% of SunPower Corporation, the second biggest solar panel manufacturer in America, and use it as a new springboard into a renewable sector struggling for competitive edge.
Shares in SunPower surged 40% after it revealed a "friendly tender offer" from an oil company that had been expected to put major new investment into nuclear rather than solar or wind, at least until the Japanese earthquake raised new questions about the safety of atomic power.
"The world future energy balance will be the result of a long-term transition in which renewable energies will take their place alongside conventional resources," said Philippe Boisseau, president of Total's gas and power division.
Total has been raking in enormous profits from oil at $120 a barrel ? but is said to see renewables energy as a useful hedge. High crude prices make alternative power sources more attractive but the solar industry has also been hit in places such as Britain, Germany and Spain which have started to cut their public subsidies as part of wider plans to reduce debt levels.
Total is not an entire newcomer to renewables. It has held a half share in two solar firms since the early 1980's ? Photovoltech and Tenesol. In November Total unveiled plans to build a solar panel manufacturing plant in the Moselle region of France with annual capacity of 220,000 solar panels a year. The oil company will now inject $1bn into SunPower over the next five years allowing the US solar business to "accelerate our power plant and development business," according to its chief executive Tom Werner. SunPower has been hit by mounting competition from lower cost Chinese panel makers but still claims to design, manufacture and deliver the highest efficiency solar products in the industry.
BP and Shell made major forays into renewables but have backed off in recent years. BP shut down its stand alone Alternative Energy head office while Shell sold off a major part of its photovoltaic module production to SolarWorld of Germany in 2006 and then disposed of its solar rural business in the developing world.
Total had been investing in nuclear having acquired an 8.33% interest, in the consortium commissioned to develop the European pressurized reactor project in Penly, France, with EDF and GDF Suez.
The Fukushima plant accident ? coupled with the 25th anniversary of the Chernobyl accident ? has spread a pall of negativity over nuclear energy business.
Source: http://www.guardian.co.uk/business/2011/apr/29/total-solar-power-renewables
St Lucia Royal Bank of Scotland Wolverhampton Wanderers Jonny Wilkinson Nuclear power Gabriel Agbonlahor
No comments:
Post a Comment