- Royal Group has signed a project investment agreement with Fuyang Economic and Technological Development Zone for solar cell and module production
- 10 GW TOPCon ultra high efficiency solar cell capacity will be realized in 2 phases of 2 GW and 8 GW respectively
- It will be followed by another 10 GW cell capacity; 2 GW solar module project is also in the plans but it will depend on market conditions
The 4th listed company in the Chinese dairy industry, the Royal Group has announced plans to invest RMB 10 billion to build 20 GW worth of TOPCon ultra high efficiency solar cell capacity along with 2 GW solar module manufacturing plant in Anhui province.
The group entered into a project investment agreement with the Fuyang Economic and Technological Development Zone through its subsidiary Royal Agri-Photovoltaic Complementary (Guangxi) Technology Co Ltd to locate the projects here, it announced. The 20 GW cell capacity is planned to be realized under 2 phases of 10 GW each.
For the initial 10 GW project under phase I, the initial the plan is to construct 2 GW cell capacity that’s expected to achieve annual sales volume of not less than RMB 1.7 billion while annual tax revenue is estimated to be not less than RMB 40 million.
Remaining 8 GW TOPCon cell capacity is reserved for part II when annual sales are calculated as RMB 6.8 billion and tax revenues as RMB 160 million. This phase is targeted to be completed before June 1, 2023.
It will then proceed to the other 10 GW cell capacity under phase II which is expected to bring in annual sales of RMB 8.5 billion and tax revenue of RMB 200 million. This phase is scheduled for completion by June 1, 2024 but its realization will depend on feasibility studies and market research.
Once all of this 20 GW TOPCon cell capacity is commissioned and fully ramped up, it is expected to achieve total annual sales of at least RMB 17 billion and tax revenue of RMB 400 million. The 2 GW module project will be progressed basis market conditions.
The Royal Group has an annual production capacity of nearly 700,000 tons of various dairy products. It is also operating in the livestock domain. It wants to combine its own business development needs to invest in agricultural and PV domain to enhance the synergy with PV industry seeing its market potential that’s set to grow in China. Solar PV can help empower traditional dairy enterprises enabling them to bring down their carbon emissions, it believes.
The company has already entered the space of agriculture and solar PV projects which diversifies its business to the development of new energy and improve its overall competitiveness.