Solyndra raises $198M, breaks ground on 500 MW plant

Fremont, Calif.-based solar cylinder developer Solyndra said today it started construction on its second manufacturing facility for cylindrical solar modules.

The 500-megawatt capacity production facility in Milpitas, Calif., is being built near the company's first, 110-MW plant in neighboring Fremont. Fab 2 is expected to cost $733 million. 

The groundbreaking came as a result of Solyndra raising equity equal to 27 percent of the project's cost, freeing up a $535 million loan from the U.S. Treasury Department for the remaining 73 percent. The $198 million equity round was led by Argonaut Private Equity, Solyndra said today.

In March, Solyndra became the first company to receive a loan guaranteed by the U.S. Department of Energy under Title XVII of the Energy Policy Act of 2005 (see Solyndra nabs $535M DOE loan guarantee for 500 MW factory). Solyndra had previously said it planned to build a 420 MW capacity plant (see Solyndra reveals thin-film solar tubes).

Initial production is expected to begin in late 2010, with lifetime production estimated at 15 gigawatts.

The company has raised significant financial backing—$820 million, according to estimates early this year. That includes $219.2 million from 23 investors, including Argonaut Ventures, U.S. Venture Partners, CMEA Ventures and Redpoint Ventures in December (see Solyndra closes 2008 with $220M financing round). Solyndra CEO Chris Gronet previously told the Cleantech Group that Solyndra raised $600 million in equity from investors including Virgin Green Fund, Madrone Capital Partners and RockPort Capital Partners. It was reported in 2007 that Solyndra raised $79 million (see Swiss cleantech and ocean power).

Last year, Solyndra came out of stealth mode to reveal its entry into the solar race—long cylinders coated in thin-film material inside glass tubes, which line up inside aluminum frames.

See Solyndra's technology here »

Solyndra says the tubes allow the CIGS material to capture optimal sunlight for a longer period than traditional flat panels. Solyndra’s 180-watt-peak panels—each made up of 40 cylinders in a one-meter by two-meter aluminum frame—have an efficiency of 12 percent to 14 percent, the company says.

Solyndra said the new facility will enable it to fulfill its sales backlog of more than $2 billion, including a deal in July worth $238 million with Holzgerlingen, Germany-based solar integrator Umwelt-Sonne-Energie (see Solyndra scores $238M deal with German solar integrator), a $115 million supply deal with Zapfendorf, Germany-based solar integrator EBITSCHenergietechnik in May (see $1.8B backlog for Solyndra with new German deal), a $189 million agreement with Amsterdam-based solar integrator SunConnex, $250 million with German solar integrator GeckoLogic, and $320 million with commercial roofing manufacturer Carlisle Construction Materials (see Solyndra inks $320M deal with roofing maker Carlisle). 

The company estimates that the factory operation will require 1,000 employees.

Cleantech developments making news in the past 24 hours

• Nexamp closes Series A round, brings on new CEO
• Water innovation beyond desal: the new opportunities?
• Areva to launch solar business with Ausra takeover

View the last week of cleantech developments here | Subscribe to full feed