Evergreen Solar: REC Joins EverQ Partnership (ESLR)

| About: Evergreen Solar (ESLRQ)

From Amtech Research alternative energy analyst David Edwards' note to clients:

On November 25th, Q-Cells AG announced that the Norwegian Renewable Energy Corporation ASA (REC) will become a third partner in its EverQ joint venture with ESLR. Initially, REC will take a 15% stake in the joint venture, but will have the option of increasing its share to 33%. ESLR's stake will be reduced to 64% initially and may be reduced to 33% if both Q-Cells and REC exercise their option to increase their share to 33%. REC has initially committed to delivering 250 tons of silicon per year for seven years to EverQ, which should meet the demands of the first production plant. REC is also bound to offer "significant additional feedstock volumes for the period 2007-2015 to EverQ as soon as REC's own capacity expansion allows this". While we see REC's involvement as a positive for EverQ and ESLR, we are unclear on the financial impact to ESLR at the moment.

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