U.S. Polysilicon Manufacturers Developing Close to $3 Billion in New Plant Construction

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Researched by Industrial Info Resources (Sugar Land, Texas). Photovoltaic solar panels and polysilicon are hot commodities in today’s growing renewable energy market. Polysilicon, the raw material from which solar cells and silicon wafers are manufactured, is in great demand these days. For the last two years shortages of the material have driven up prices. For details see related May 7, 2007 news article - Thin Film Solar Cell Companies Secure Locations to Begin Worldwide Production. Polysilicon manufacturers have taken notice and are implementing plans for expansions globally. The U.S. is the leading nation for polysilicon production, producing about half of the world’s polysilicon. All of the major players in the U.S. are expanding to the tune of almost $3 billion. These expansions will add an estimated 32,000 metric tons of capacity by 2010. Established players REC, MEMC, Mitsubishi and Hemlock, along with newcomers Hoku Scientific and AE Polysilicon, are competing to gain market share by expanding existing facilities and/or building new facilities to produce polysilicon.

Hemlock Semiconductor Corporation (Hemlock, Michigan), majority owned by Dow Corning Corporation, is planning the largest expansion. Currently constructing a three phase, $500 million expansion, the company recently announced plans for an additional $1 billion expansion adding 17,000 metric tons per year of capacity by 2010. The company is also conducting a global site study for a grassroot plant.

One of the largest projects currently under construction in the U.S., REC Solar Grade Silicon LLC (Moses Lake, Washington) has hired Flour Corporation to construct a new $600 million polysilicon manufacturing plant adjacent to existing facilities in Moses Lake, Washington. Structural erection is underway on a new plant that will increase the company’s capacity by 6,500 metric tons per year. REC Solar Grade Silicon operates two plants in the U.S., in Moses Lake and in Butte, Montana.

In addition to established producers, the market has attracted newcomers, which are planning to construct grassroot plants in the U.S. Hawaii based Hoku Scientific is planning to begin construction later this year on a new 2,000 metric ton per year polysilicon plant in Idaho. AE Polysilicon (Chatham, New Jersey) is planning to construct a 1,500 metric ton per year plant in Pennsylvania. Future phases could expand capacity up to 2,400 metric tons per year.

2007 is turning out to be a turbulent year for equipment and service providers to this growing sector, as many of these expansions are scheduled to begin construction this year. Companies in high demand for polysilicon manufacturers include those specializing in pressure vessels, fluidized bed reactors, heat exchanges, compressors, pumps, silane gas systems, and solvent recovery systems.

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