Alberta — Canadian Premium Sand Inc. (“CPS”), a Calgary-based mining and technology company, has announced that it has signed multiple commercial off-take agreements and MOUs for its patterned solar glass manufacturing facility, the first of its kind in North America.
The agreements represent a minimum of 62% of planned output capacity, with an optionality to increase to 77%.
The agreements have been signed with three North American solar panel manufacturers, including Hanwha Solutions Corporation, Heliene Inc., and Meyer Burger Technology AG, for a combined total of 62% of planned output capacity and an average renewable contract term of over 4 years. These agreements include options to increase firm off-take volumes by an additional 15% of planned output capacity to a combined total of 77%, subject to mutual agreement.
The Company has also signed MOUs representing an additional 170% of planned output capacity, which are expected to convert into commercial off-take agreements such that the Project is 100% contracted.
The Company has completed pre-construction engineering and design and has signed a turn-key Engineering, Procurement and Construction (EPC) agreement providing capital cost certainty and operational performance guarantees.
The EPC consortium includes PCL Constructors Canada Inc. and Henry F. Teichmann, Inc.
The solar glass manufacturing facility will be located in Manitoba and will be capable of producing a range of patterned solar glass specifications, including standard 3.2mm thick front-glass for the residential and commercial rooftop market as well as 2.0 mm thick glass required for the bifacial utility market.
The Company’s EPC consortium has designed an 800 tonne per day solar glass manufacturing facility, significantly larger than the 550 tonne per day facility contemplated in the 2021 FEED study. The Facility is capable of supplying solar glass to approximately 6.0 GW per annum of solar panel manufacturing capacity in North America.
The Company has entered into a preliminary construction agreement with the EPC consortium that incorporates a guaranteed maximum cost of $880 million, which is inclusive of the silica sand operation and provides for turn-key project execution, including specific operational and performance guarantees for the Project.
The Project is expected to generate $300 to $330 million of annual revenue and $170 to $190 million of annual EBITDA, with an unlevered before-tax IRR of over 18%.
The Company has also appointed a Vice President, Glass Operations and enhanced its board of directors with solar energy industry expertise.
Formal financing process has been initiated with Fort Capital Partners and Peters & Co. Limited engaged as co-financial advisors. The Company expects to close the financing by the end of 2023.
The Environmental Act Licence has been issued by the province of Manitoba to construct and operate the facility.
“We are excited to have reached this important stage in the development of our integrated solar glass manufacturing project. With strong revenue visibility through binding commercial off-take agreements and a high degree of certainty with capital costs and operational performance through our EPC agreement, we are confident in our ability to commercialize this high return Project, supporting the global energy transition,” said Glenn Leroux, Company President & CEO.