Siemens Energy to Buy 28% Stake in Italy's Archimede Solar Energy

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Researched by Industrial Info Resources (Sugar Land, Texas)--Siemens Energy (Erlangen, Germany), a subsidiary of global engineering major Siemens AG (NYSE:SI) (Munich, Germany), is eyeing a stake of 28% in renewable energy company Archimede Solar Energy SpA (Massa Martana, Italy) to expand its footprint in the global solar power market. Siemens Energy is a leading global energy provider offering a range of products, services and solutions for power generation, transmission and distribution.

The acquisition is likely to benefit both companies. While Siemens stands to benefit by improving its expertise of solar power plants, Archimede will have access to capital required to boost its installed capacities. Financial details have not been disclosed.

Archimede, a subsidiary of Angelantoni Industrie SpA (Massa Martana), is currently the only manufacturer of solar receiver tubes that use molten salt as the heat-transfer fluid for application in parabolic-trough power plants. The tubes are designed to operate at temperatures as high as 600 degrees Celsius (1,112 degrees Fahrenheit). Molten salt provides a better heat storage option and increases the efficiency of the power cycle compared to thermal oil, which is typically used in solar power plants. The stored energy can also be used to generate electricity at night.

The solar receiver tubes have been developed under a license from Ente per le Nuove tecnologie, l'Energia e l'Ambiente (ENEA) (Rome, Italy), the government-sponsored agency for energy, environment and new technologies. Siemens is a market leader for solar-powered steam turbines and generators for use in power plants. The company plans to combine its technology with that of Archimede to improve the operational efficiency of plants and produce solar power cost effectively.

Archimede plans to begin construction of a plant to manufacture solar receivers by the end of this year. The facility is slated for completion in 2010. According to industry projections, the solar power market is forecast to grow at a rapid pace, witnessing an annual double-digit growth rate in the coming years. The volume of the solar power market is expected to be more than $13.4 billion in 2015.

Siemens achieved a turnover of $25 billion in the past fiscal year for its product and solution offerings under the environment portfolio that includes wind turbines, highly efficient and less polluting gas turbines, and solar power plants. The company plans to increase its revenues from the environment portfolio business to over $33.5 billion by 2011. The company's solutions have helped cut customers' greenhouse gas emissions by 148 million tons and this is expected to go up to 275 million tons by 2011.

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