German Companies Expand Polysilicon

Responding to rapid growth in the solar energy sector, two German companies are expanding capacity for solar-grade polysilicon, which is considered the most important raw material for making photovoltaic cells.

Wacker Chemie is already in the process of almost doubling its polysilicon capacity in Burghausen, Germany, to 10,000 metric tons by early 2008. The company now plans to expand capacity by an additional 4,500 metric tons. The new project will cost around $375 million and will be completed by the end of 2009.

Chief Executive Officer Peter-Alexander Wacker says the expansions will make Wacker the world's leading producer of solar-grade polysilicon.

Separately, Joint Solar Silicon, a venture between Degussa and SolarWorld, is planning to build an 850-metric-ton polysilicon plant in Rheinfelden, Germany, by 2008. The new plant will use a jointly developed process that yields polysilicon from silane gas, which Degussa produces at the site. Degussa will increase its output of the gas to supply the joint venture.

SolarWorld builds solar power plants and the key components that go into them, as well as consumer-type gear to produce solar energy from residential rooftops. Joint Solar Silicon says growth in the solar power industry is ???restrained due to a shortage of raw materials."