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Renewable Energy

Corporation

RECGROUP

REC Corporate presentation

Business Confidential Copyright Renewable Energy Corporation ASA. All Rights Reserved 20102

Source: The Intergovernmental Panel on Climate Change (IPCC), SRES (Special Report on Emission Scenarios), Alt. 1Definition: exajoule (EJ) is a unit of energy, 1018 joules, often used as unit of measure for world annual energy use

The world needs more energySupply of different energy sourcesExajoule

1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 21000

500

1,000

1,500

2,000

2,500

Nuclear

Renewables

Natural Gas

Oil

Coal


The sun supplies “virtually” unlimited energyE

quiv

ale

nt s

tock

of

ener

gy

sour

ce Uranium

Natural gas

Oil

Coal

Annual energy demand

Fact: There is more energy delivered by the sun in one hour than what is consumed by the world’s population in one year

Solar power


Solar energy payback time

Payback time of around one year– Energy payback is the time it takes a

solar panel to generate the same amount of energy that was used to produce it

For the remaining 24 years of its guaranteed lifetime, a solar panel will be ‘energy positive’

Energy payback timeNumber of Years

Mono 2005 Multi 2005 REC 2007 REC today0

0.5

1

1.5

2

2.5

Source: Alsema et al. (EU Crystal Clear project), 21st European PV Conference, Dresden, 2006


REC - An integrated solar company from Norway

Renewable Energy Corporation ASA (REC) was established in 1996

REC is now the leading vertically integrated player in the solar industry

REC has more than 4,000 employees in production units and offices worldwide.

In 2009, REC had revenues in excess of about NOK 9 billion.

Silicon Wafer Solar

Cells Modules Systems

Chemical process Casting and cutting Surface treatment Assembly Project development


REC – A history of growth

Start production in

ScanCell

Start production in ScanWafer

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Capacity expansions

Start production in ScanModule

Established Solar Grade

Silicon

Aquired ASiMI

AquiredSiTech

NOK million

http://mainstreamenergy.com/index.html

http://mainstreamenergy.com/index.html


Production facilities and capacity (including ongoing expansions)

Moses Lake, USAMoses Lake, USA

Butte, USAButte, USA

Glava, SWEDENGlava, SWEDEN

Narvik, NORWAYNarvik, NORWAY

Tuas SINGAPORETuas SINGAPORE

• Polysilicon (Siemens & FBR) plants ~13 500 MT capacity.• Silane gas capacity ~21 000 MT

• Polysilicon (Siemens & FBR) plants ~13 500 MT capacity.• Silane gas capacity ~21 000 MT

• Polysilicon (Siemens) capacity ~3 500 MT. Silane gas capacity ~7 500 MT

• Polysilicon (Siemens) capacity ~3 500 MT. Silane gas capacity ~7 500 MT

• Cell plant ~225 MW capacity• Cell plant ~225 MW capacity

• Module plant ~150 MW capacity• Module plant ~150 MW capacity

Glomfjord, NORWAYGlomfjord, NORWAY

• Multicrystalline wafer plant ~ 320 MW capacity• Monocrystalline and wafer plant - ~300 MW capacity

• Multicrystalline wafer plant ~ 320 MW capacity• Monocrystalline and wafer plant - ~300 MW capacity

Herøya, NORWAYHerøya, NORWAY

• Wafer plants – totalling ~1,1 GW capacity• Wafer plants – totalling ~1,1 GW capacity

• Wafer plant ~740 MW capacity• Cell plant ~550 MW capacity• Module plant ~590 MW capacity

• Wafer plant ~740 MW capacity• Cell plant ~550 MW capacity• Module plant ~590 MW capacity


Silicon production

REC produces silicon materials for the electronics and the photovoltaic markets

REC is a large player in the global silicon materials industry– Largest silane gas producer

– Third largest polysilicon producer

– Largest producer of high purity float zone (FZ) polysilicon

REC Silicon REC Wafer REC Solar




Polysilicon production process

Silane sold to PV, LCD, thin film

Silane

Mg-Si

Most silane used for polysilicon

Siemens process at high temperature

Rod pieces

Loaded into crucibles

Rods





Monocrystalline

Multicrystalline

Wafer production

REC is a leading producer of multicrystalline wafers for the PV industry

Aiming to strengthen the position in the monocrystalline wafer segment

Industrialized mass production according to lean manufacturing principles


From silicon to multicrystalline wafers…

It is then cooled from the bottom, crystallization begins...

...and melted in special furnaces

Solar grade silicon is first put in crucibles…

...and multicrystalline silicon is formed

The resulting massive ingot is cut into 16 blocks...

Each block is prepared for…

...slicing into leaf-thin wafers…

…and washed, separated from each other and dried


Cells, modules and systems integration

REC is a fast-growing producer of solar cells and solar modules.

REC is involved in solar systems integration in selected segments of the market.

Strategic ambition is to develop into a leading, global solar cell and module manufacturer, as well as a project developer within selected segments of PV systems.





Doping

Anti-reflective coating

Soldering

Screen printing

Encapsulation and testing

Distribution

Wafer

Wet chemistry

From wafers to modules… and into the market


Cost reduction Profitable growth

Technological advances

Organizational development

Market and customer focus

CORPORATE GOALS

Renewable Energy

Corporation

RECGROUP

Cost-reductionCost reduction


The only relevant issue...

THE PRICE OFPV ELECTRICITY

THE PRICE OF GRID ELECTRICITY


The concept of grid parity

Source: BP Solar

Time

Pric

e

GRID PARITY

Renewable electricity

Grid electricity

2010

Approximately 2,000 sunhours

Approximately 1,000 sunhours


The cost of solar energy is consistently decreasing

Historical module learning curve

1

10

100

0 10 1001 1,000 10,000 100,000

PV

Mod

ule

pri

ces

US

D/W

p

Cumulative Module Production (MWp)

1980

1990

2000

2006


REC is cutting cost with technology

The 2010 Cost roadmap

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

World 2005 Polysilicon Wafer Cell Module REC 2010

• Granular polysilicon (FBR>)

• Thinner wafers

• Thinner sawing wire

• New furnace technology

• Increasing conversion efficiency

• Process technology

• Sourcing

* Definition: Watt-peak (Wp) is a measure of power output, most often used in relation to photovoltaic solar energy devices


REC is cutting cost with technology

Renewable Energy

Corporation

RECGROUPProfitable growth


Close to NOK 30 billion in expansionsSilicon Capacity increase

+ Moses Lake (Silicon III) 6,500 MT

+ Moses Lake (Silicon IV)* 4,000 MT

= Sum 10,500 MT

Wafer

+ Herøya III + IV 650 MW

+ Glomfjord (multi) 100 MW

+ Glomfjord (mono) 275 MW

+ Singapore 740 MW

= Sum 1,875 MW

Solar

+ Singapore (cell) 550 MW

+ Singapore (module) 590 MW

550 + 590 MW

* In addition: 2,300 MT silane gas allocated to the merchant market


The silicon plants in Moses Lake, US


The integrated production facility in Singapore

24

Cell

Module

Wafer


Growth beyond 2010 will come from Singapore

The construction of REC's integrated manufacturing complex in Singapore is now complete.

The plant was officially opened by Prime Minister Lee on Nov 3, 2010.

Singapore production capacity (est):

– Wafers ~740 MW

– Solar cells ~550 MW

– Solar modules ~590 MW

The project was finalized about 20 percent lower than the original estimate of NOK 14 billion.

Space for further development

Phase I


Growth in year-end capacity

Poly and sale of Silane gas*

(MT)

Wafers

(MW)

Modules

(MW)

CAGR = ~40% CAGR = ~60% CAGR = ~95%

Capacity

Production

Capacity

Production

Capacity

Production

Renewable Energy

Corporation

RECGROUPTechnological advances


Innovation secures leadership

Leading expertise in PV

Further development of technologies and processes

Uniquely positioned to realize innovations across the value chain

More than 200 patents granted and pending


REC Silicon: Proprietary deposition technology – Fluidized Bed Reactor (FBR)

Siemens Reactors:+ Silane based proven technology

+ Produces ultra-pure polysilicon

+ Meets a specific set of market needs

– High energy consumption

– Batch process

– Needs additional product finishing to be usable

FBR Technology:+ Proprietary REC technology

+ Energy efficient

+ Continuous production

+ Lower cost

+ Logistics friendly product

– Ramping to commercial scale

Siemens reactor schematic FBR reactor schematic

Silane

Cooling medium

Cooling medium

Reactor outletReactor inlet

Electrical contact

Polysilicon rods


Wafer production: Lowering our silicon consumption and improving the solar efficiency of our products

Thinner wafers

Thinner sawing wire

New furnace technology

Proprietary technology in each process step


Cell and module production: Investing in proprietary technology and process improvements

Highly automated processes

Increasing conversion efficiency

Operational excellence

Economies of scale

Renewable Energy

Corporation

RECGROUPMarket and customer focus


Current status in key solar markets

2005

2006

2007

2008

2009

0

1,000

2,000

3,000

4,000

2005

2006

2007

2008

2009

0

1,000

2,000

3,000

2005

2006

2007

2008

2009

0

1,000

2,000

3,000

2005

2006

2007

2008

2009

0

1,000

2,000

3,000

USA (MW)

Germany (MW)

Spain (MW) Italy (MW)

Japan (MW)

Source: EPIA Global Market Outlook 2014

20

05

20

06

20

07

20

08

20

09 0

1 000

2 000

3 000

Chart Title


Two main market segments

Source: Marketbuzz, 2009

Grid connected

Off grid

Residential buildings Commercial buildings Power plants

Home systems Water pumping Telecom Space

96 percent of market

4 percent of market


Grid connected – residential

The Monterey property, USA

Family residence in California USA: This residential Roof-mounted installation has a system size of 13.4 kW and utilizes REC 220 AE-US solar modules. The owners see it as a solid investment in their property.


Grid connected – commercial

Hugo Boss logistics center, Germany: More than 4 500 REC modules have been installed on what is among the largest roof-top PV plants in Germany, providing one million kWh of solar energy annually.


Grid connected – power plants/systems

Parque Metropolitano power plant, Spain: The plant has a total capacity of 4,6 megawatts, utilizing the REC A-Series and REC-AE series modules, with rated output ranging from 210 to 225 watts.


Strengthening the sales & marketing organization in Oslo

Expanding the sales & marketing organization

REC Solar established in California. 20% shareholding in Mainstream Energy

REC Solar, France, established in Paris

REC Solar Italy established in Milan

REC Solar Spain established in Barcelona

REC Solar Germany established in Munich

REC Silicon’s presence in Shanghai will be strengthened

REC Silicon has had a customer support and sales office in Tokyo for more than 15 years

REC Systems established in Singapore


REC Group executive managent

REC SILICONTore Torvund

REC SILICONTore Torvund

REC GROUPOle Enger

REC GROUPOle Enger

REC WAFER/SOLARJohn Andersen Jr.

REC WAFER/SOLARJohn Andersen Jr.

TECHNOLOGYErik Sauar

TECHNOLOGYErik Sauar

IRMikkel Tørud

IRMikkel Tørud

FINANCE &ADMINISTRATION

Bjørn Brenna

FINANCE &ADMINISTRATION

Bjørn Brenna

LEGALKristine Ryssdal

LEGALKristine Ryssdal

ORGANIZATION & COMMUNICATION

Øyvind Hasaas

ORGANIZATION & COMMUNICATION

Øyvind Hasaas


“I'd put my money on the sun and solar energy. What a source of power! I hope we don't have to wait till oil and coal run

out before we tackle that.”

Thomas Edison to his friends Henry Ford and Harvey Firestone (1931)

Renewable Energy

Corporation

RECGROUP

Smart energy for a cleaner future