Dyesol finds financing for perovskite PV tech fab in Turkey

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The Development Bank of Turkey (TKB) has agreed to back Dyesol’s perovskite-based PV tech fab in Turkey.

The Australian renewable energy company signed a deal with Turkish group Nesli DSC earlier this year to introduce and commercialize perovskite Dye Solar Cell (DSC) PV technology in Turkey. The companies plan to take the technology through the development stages of prototype, pilot line and mass production, with the end goal of constructing a 600 MW plant in the city of Mersin that would employ up to 2,500 technical, manufacturing, installation and maintenance staff.

Dyesol Managing Director Richard Caldwell said TKB “appreciates the inherent risks in the scale-up to mass production of our revolutionary solar technology and we have every confidence in securing their substantial financial support. It is gratifying that the Turkish Development Bank has identified our technology as a leader in the field of next-generation renewables.”

In a letter of intent to Dyesol, TKB Deputy CEO Bahattin Sekkin outlined the strategic importance of introducing renewable energy technology to Turkey. Focused on developing internal manufacturing capacity and minimizing the import of foreign energy products, TKB is set to provide the required project finance “upon its own appraisal of the project.”

TKB is also considering taking a stake in Dyesol. TKB’s involvement can provide a tax shelter for the company in the early years of development as well as favorable terms for the employment of labor, ensuring strong prospects for success, Dyesol added.

“The conditions for the proliferation of solar technology in Turkey and its neighboring countries are very favorable,” Dyesol said in a statement, adding that the G20 country was “a fast growing economy with a need to strongly diversify away from its current reliance on foreign energy sources, which negatively impact its current account.”

Pre-conditions for the deal include the establishment of a 50-50 joint

stock company with Mersin-based Nesli DSC, completion of a $1.9 million prototype facility in Mersin – which Dyesol described as a key transport hub that was well suited for the manufacture and distribution of finished goods — and submission of a detailed business plan to TKB, expected to take place this year. Funding and construction of the pilot line would then start in 2016, with mass production of glass substrate panels scheduled to commence in 2018. The new company would initially address utility, rooftop and stand-alone installations and provide building integrated applications (BIPV) in later development stages. Nesli DSC has likewise focused on commercializing DSC technology in Turkey, including development of DSC-based building integrated PV (BIPV) facade panels for commercial buildings.

Dyesol said it considered the letter of intent "a strong welcome to develop and commercialize its technology in Turkey based on the consideration of the relevant technical and business factors."

The company plans to form similar partnerships in strategic geographical locations around the world and is currently involved in similar negotiations for the financing of at least one other project.

Dyesol said it was looking to form joint-ventures that would provide “high-quality and high-volume routes to market for technology that has been principally researched and developed in Australia."