InterviewUS Fluor to build more photovoltaics

09 April 2008 19:16  [Source: ICIS news]

By Joseph Chang

NEW YORK (ICIS news)--US-based engineering and construction firm Fluor aims to build more photovoltaics projects to offset any cyclical downturn in petrochemical construction, the head of its chemical business said on Wednesday.

"While we're currently riding the wave of Middle East petrochemical projects, we want to diversify our project portfolio into other areas like the photovoltaics segment,” said Peter Oosterveer, senior vice president and chemical business line leader of Fluor. "Once the cycle turns down, we need something to fill the backlog, and the demand for solar cell materials is expanding rapidly."

Fluor has a chemical project backlog of about $6bn (€3.8bn), with photovoltaics projects comprising about 35%, he said. In the next four years, Fluor aims to continue to get a substantial percentage of its chemical revenues from photovoltaics.

Fluor is building polysilicon facilities for Norway's REC Silicon (in Moses Lake, Washington, US), China's LDK Solar, Norway's Elkem Solar and Russia-based Nitol. In addition, the company is performing front-end design activities for a few other facilities.

Polysilicon is the key raw material used in the production of photovoltaic panels.

"There is a huge increase in demand for solar panels,” Oosterveer said. “We don't see any of the polysilicon producers holding back." said Oosterveer.

Despite the breakneck pace of capacity expansions, there is no consensus view on overcapacity, he added.

"Virtually all the producers have signed off-take agreements on their new capacity," Oosterveer said.

Fluor's largest photovoltaics project is the $1.2bn, 15,000 tonne/year polysilicon facility for LDK Solar in Shanghai, China. The project is expected to start initial production towards the end of 2008.

"This is the largest polysilicon project in the world and will add 15,000 tonnes/year of capacity to total worldwide capacity of currently less than 100,000 tonnes," noted Oosterveer.

($1 = €0.64)

By: Joseph Chang
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