Quantum, Asola to get $500M in solar cells from ersol

Irvine, Calif.-based Quantum Fuel Systems Technologies Worldwide (Nasdaq: QTWW) said today that its German solar strategic partner, Asola Advanced and Automotive Solar Systems, signed a 10 year supply contract with ersol Solar Energy. [ed.: lowercase correct.]

Quantum said the agreement guarantees the supply of 155 megawatts of silicon photovoltaic solar cells to Quantum and Asola starting in 2008, with the value of the contract estimated to exceed $500 million.

"This photovoltaic cell purchase agreement positions Quantum and our strategic partner, Asola, for expansion into fast-growing renewable energy markets in Europe and California," said Alan Niedzwiecki, president and CEO of Quantum.

"Asola's high-quality solar modules continue to be in high-demand in the expanding renewable energy markets in Germany, Spain, Italy, and France. Our goal is to produce and make these high-quality solar modules available in the United States as well," said Niedzwiecki.

Quantum said today's agreement avoids any potential future disruptions due to polysilicon shortages.

The two companies plan to use the ersol cells for the manufacture of solar modules for commercial, residential, and automotive applications.

"We are very pleased to enter into this relationship with our long-term partner Asola. Together with Quantum and Asola, we hope to accelerate our entry into the fast growing California solar market," said Claus Beneking, CEO of ersol.

Quantum is a developer and producer of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles. Asola produces and markets monocrystalline and polycrystalline silicon photovoltaic modules for residential, industrial and automotive applications.