Honolulu, Hawaii, January 27, 2010 – Hoku Scientific, Inc. and Tianwei New Energy Holdings agreed to explore an investment fund to finance photovoltaic (PV) power systems to be installed and operated in Hawaii by Hoku Solar, Hoku’s PV integration subsidiary.
The letter of intent is non-binding, and intended as a framework for further discussions and negotiations.
Hoku Scientific, Inc. is a clean energy company with headquarters in Honolulu. Tianwei New Energy Holdings is a provider of silicon wafers, photovoltaic cells, modules and systems.
The two companies will begin the process of structuring a solar project financing fund that could be as large as $50 million, which would provide funding for the installation and operation of large commercial, industrial, and utility-scale PV projects via power purchase agreements.
“With Hawaii’s Feed-in Tariff expected to go into effect this year, we believe that a dedicated pool of project capital would provide real competitive advantage in Hawaii’s rapidly evolving PV market,” said Dustin Shindo, chairman and chief executive officer of Hoku.
“Hawaii has a compelling, but unique PV market,” said Adam Zheng, president of Yuanhong Venture Capital in Chengdu, China, and a director of Hoku Scientific. “While Chinese investors are actively looking for a way to put capital to work in the expanding U.S. solar market, they recognize that it remains heavily fragmented by state-specific incentive programs and utility-driven interconnection requirements. This type of fund would offer a way to leverage Hoku Solar’s specific expertise in a key, emerging U.S. market.”