Hanwha Solutions, Microsoft sign solar energy partnership in US

Hanwha Solutions Corp., a unit of South Korea’s chemicals-to-construction conglomerate Hanwha Group, said on Thursday it has formed a strategic alliance with Microsoft Corp. to curb carbon emissions through their joint solar energy supply projects.

Under the partnership, Hanwha Q Cells Co., a US subsidiary of Hanwha Solutions, will work with Microsoft to develop solar projects as well as provide panels and engineering, procurement and construction (EPC) services for select solar projects the US tech giant has contracted through power purchase agreements (PPAs).

Hanwha Q Cells will be supplying more than 2.5 gigawatts (GW) of solar panel modules – enough to power at least 400,000 homes – for such projects, it said.

The alliance marks the first time a company that procures energy will work directly with a solar supplier to adopt clean energy projects on a large scale, according to Hanwha and Microsoft.

Microsoft said it has committed to purchasing renewable energy with a goal of achieving 100% coverage of electricity consumption with renewable energy by 2025. The US tech company aims to be carbon negative by 2030.

Microsoft said it will support Hanwha Q Cells’ solar products, including those manufactured domestically, to bring more renewable energy to the grid.

“Building a resilient solar energy supply chain is essential to advancing a global green energy economy. Microsoft’s partnership with Q Cells will help make this vision a reality by bringing innovation and investment to rural Georgia,” said Brad Smith, vice chairman and president of Microsoft.

HANWHA’S SOLAR HUB IN GEORGIA

The only company in the US with a complete solar supply chain, Hanwha Q Cells intends to become a leading developer for solar and other clean energy products such as energy storage systems.

Earlier this month, Hanwha Solutions said it will invest $3.2 billion to build the largest solar energy production hub in the US by next year.

Specifically, the company will boost the capacity of its existing solar module factory in Dalton, Georgia from 1.7 GW of electricity to 5.1 GW by 2024.

It will also spend $3 billion to build a new production complex in Cartersville, about an hour's drive south of Dalton. The new complex will cast ingots and manufacture wafers, cells and modules.

The new factory is slated to begin commercial production around the end of next year.

In total, Hanwha will have the capacity to generate 8.4 GW of electricity, enough to power 1.3 million households in the US for a year, by 2024.

“Q Cells is proud to work with Microsoft to bring more renewable energy online in the years to come,” said Hanwha Q Cells Chief Executive Justin Lee.

“This first step is only the beginning of a great partnership that not only supports our two companies but helps deliver a clean energy future for customers and communities.”

Write to Seo-Woo Jang at suwu@hankyung.com
In-Soo Nam edited this article.