Evergreen Solar on the right track
Evergreen Solar (Nasdaq: ESLR) shares jumped on Tuesday over the news that it has secured a long term polysilicon supply agreement with a Norwegian company. Norway’s Renewable Energy Corp. agreed to supply EverQ, a joint venture between Evergreen Solar, Q-Cells AG of Germany and REC, with 7,400 metric tons of granular polysilicon over seven years. The deal will increase production capacity from about 30MW this year to approximately 300MW by 2010 and possibly as early as the second half of 2009.
The shortage and cost of polysilicon has been the biggest risk associated with solar stocks. With the ability to increase production 10 times between now and 2010, Evergreen solar is on the right track. The stock had pulled back recently before the huge jump yesterday. The stock is worth keeping an eye on.
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