Yingli Green Energy, the photovoltaic solar panel manufacture (and FIFA World Cup sponsor), scored a $4.5 million subsidy from the U.S. Department of Energy. In its application to the DOE the Chinese company had used a Phoenix address, which fueled speculations that the company was planning to build and operate its first North American PV plant in Arizona.
Not so, an official at the City of Austin’s economic development office tells GER, that as far as they’re concerned, nothing’s set in stone and Austin is still in the running to get the $20 million plant and its 300 jobs.
As part of its campaign to lure Yingli to Texas, yesterday, the city released an incentive package worth some $354,000.
How this latest push by Austin fits with the $4.5 million DOE tax credit Yingli got earlier this year remains unclear.
Brian Gildea, economic development manager for the City of Austin, tells GER that he does not believe the DOE incentive is tied to Phoenix and it could also be used in Texas.
UPDATE: However, a DOE spokesman emails GER this statement:
Geographic location was part of the criteria for selection for the tax credit. Major changes to the project, including change of location or materials produced, need to be reviewed before the credit is awarded.
Obviously, this debate is far from settled.
What the City of Austin is offering Yingli, Gilda explains, is a grant that over the next decade would support 80 percent of new property and personal taxes generated by the plant.
Austin has had a tough time luring renewable energy companies. Last November Chinese solar developer Suntech Power picked Goodyear, Ariz., a suburb west of Phoenix, over Austin to house its first U.S. plant.
We’ve called the DOE and will post with any update.
We’ve also emailed Yingli’s investor relations department for details on its North American strategy.
Demand for cheap Chinese solar PV is surging. To meet that demand Yingli and other Chinese solar companies are eager to grow their overseas presence.
Besides a cost of production advantage, Chinese renewable energy companies can also rely on generous local banks that — unlike their U.S. or European counterparts – can provide cheap debt to finance their international expansion.
Image: Flickr, atmtx