| Solexant Corp. is set to announce Tuesday that it has chosen to build a new manufacturing plant for thin-film solar cells in Gresham that will initially employ about 100 workers. While the official announcement is set for Tuesday afternoon, the agenda for Gresham City Council's meeting provides background on the project. The council is set to vote on a loan guarantee that would have Gresham backstopping $13 million out of a $25 million loan that Solexant intends to take from the Oregon Department of Energy. Gov. Ted Kulongoski's office also said he would be attending a news conference Tuesday to announce a new solar employer. San Jose-based Solexant has been sniffing around the Portland area for some time and also considered sites in Fairview and Wilsonville before settling on Gresham. The company has been operating a pilot plant in California, manufacturing solar cells from ultra-thin layers of material applied to a backing. That plant has an annual capacity of producing modules that can generate two megawatts of energy. Solexant's plans call for a plant in Gresham capable of annually producing modules that can generate 100 megawatts of energy. Solexant's technique, developed at Lawrence Berkeley National Laboratory, will enable it to use a variety of materials. Oregon economic development officials have been trying to land a thin-film manufacturer to help diversify the state's expanding solar industry. Initial plans call for a facility with 100,000 square feet of space and 100 employees, increasing to 170 employees at full production, according to the city council materials. Long term, the company hopes to eventually expand the facility to manufacture panels capable of generating 1,000 megawatts. Such a facility could employ as many as 1,000 workers. Solexant has been pre-certified for an Oregon energy tax credit of $18.75 million and has applied for a $25 million loan from the Oregon Department of Energy's small-scale energy loan program. That $25 million would be disbursed in two installments of $6 million each and a third of $13 million. It is the largest SELP loan ever granted, which is the reason the DOE has required Gresham to guarantee the final $13 million payment. Solexant will pay Gresham a $30,000 fee when their agreement is signed, and another $30,000 when the third installment of the loan is disbursed. The second fee can be waived if Solexant purchases property in Gresham for their expansion to 1,000 megawatts prior to the money being disbursed. If Solexant does not meet agreed-upon profitability and production levels, the company will also pay fees of $100,000 a year during the 10-year payback period of the third installment. The agreement also provides for additional fee payments to Gresham if the company expands elsewhere before reaching the 1,000-megawatt production level. |
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