China’s Hanergy buys third US solar tech firm

Despite the ongoing disputes between China, the US and the EU over Asia’s largest economy’s pricing of solar panels; some Chinese firms are continuing to look overseas for businesses that will help grow the solar industry.

Chinese firm Hanergy acquired Global Solar Energy (GSE), an Arizona-based manufacturer of ultra-thin solar panels. This follows their recent purchases of other international firms, including the UK’s Engensa, Germany’s Solibro, and US firm MiaSole.
Hanergy’s acquisitions have focused on solar panels that use copper, indium, gallium and selenium (CIGS), and they have built up a considerable amount of intellectual property in this area. The firm is also a developer of wind and hydropower.

In a statement, Hanergy confirmed the deal, while explaining its strategy: “In the past year, Hanergy has acquired Solibro and MiaSolé; both leading players in the CIGS technology field. Those transactions took the conversion rate of Hanergy’s thin-film PV modules to an unrivalled 15.5 percent.

“The acquisition of GSE closes the loop of Hanergy’s strategic consolidation of technologies that combine the competitive advantages of flexible thin-film PV modules and large scale production. It also demonstrates Hanergy’s continued leadership and commitment to developing advanced thin-film technology, and is a further step in its investment in leading CIGS technology and efficient alternative cell materials.”

Ben Goldsmith, founder of leading European sustainability investment firm the WHEB Group, welcomed the news, told The New Economy: “China’s ambitions to become a world leader in both solar equipment manufacturing and solar generation installation are a boon for the rest of us. It is because of China that solar PV module prices are plunging and solar is getting closer and closer to grid parity.”

Many European countries are welcoming Chinese investment in their solar industry. Hanergy’s recent acquisition of Engensa gave a welcome boost to the UK’s solar industry. The UK’s Energy and Climate Change Minister, Greg Barker MP, told The New Economy: “The UK is a leading destination to do business in solar. We have a high demand for clean, green power; a stable policy environment; a world-class skills base; and an extensive set of global networks. These elements are putting us ahead in the global race for renewables.

“Unlike much of Europe where the solar market is already mature, Britain has huge potential for growth.  I want to see international companies capitalise on this opportunity and choose the UK as their top destination for investment.”

China is taking seriously the move into solar, but has been criticised by both EU and US policymakers for flooding the market with cheap solar panels. Negotiations between China and their Western allies have been on going to avoid a trade war.

In June, the EU imposed duties on imports of Chinese solar panels of 11.8 percent, far below what had previously been expected. EU Trade Commissioner Karel de Gucht told a conference that it was designed to encourage China to cooperate: “This is a one-time offer to the Chinese side, providing a very clear incentive to negotiate. It provides a clear window of opportunity for negotiations, but the ball is now in China’s court.”