An innovative joint venture between New York-based investors Phalanx Impact Partners and Das & Co and Indian solar panel maker Vikram Solar Ltd announced a significant investment of up to $1.5 billion to penetrate the solar energy supply chain in the US.
As per Reuters, the JV named “VSK Energy LLC” will start developing a vertically integrated solar production plant in Colorado in 2024.
About the projects
VSK Energy LLC’ ‘s planned projects for the US solar energy supply chain include two phases.
First phase
VSK Energy LLC will allocate $250 million to develop its first Colorado PV module production plant in Mortenson Properties and Hyde Development’s newly established building in Brighton.
The companies behind the JV expect the new factory to generate over 900 permanent job positions, offering an average salary surpassing $70,000. It will also create 200 temporary construction jobs.
VSK Energy also anticipates the facility to become operational in 2024. It will have an initial production capacity of 2 GW of solar PV modules, with plans for future expansion of up to 4 GW.
“Colorado is one of the top states in the country for solar production so this expansion in Brighton will help build upon our plans to achieve 100% renewable energy by 2040, create more than 900 new good-paying jobs for Coloradans and contribute to our state’s thriving economy.”
Colorado Governor Jared Polis (via PV Magazine)
Second phase
As for the second phase of the significant investment, VSK Energy aims to achieve its planned vertical integration of the solar manufacturing process. In essence, the JV plans to erect a production plant for solar ingots, cells, and wafers in a southern state, targeting an annual capacity target of 4 GW. This project will receive a $1.25 billion capital investment from VSK Energy.
The company aims to start the second plant’s operations in 2025 once it has determined the available federal, state, regional, and local incentives for the major project.
Remarkably, it will generate more than 1,500 direct jobs and another 1,000+ construction jobs.
“The passage of the Inflation Reduction Act was a landmark moment for the clean energy future of the United States.
The Biden administration and Congress have called for immediate action, and, through our partnership in VSK, we are taking a decisive step toward achieving solar technology self-sufficiency, fortifying America’s energy security, and propelling large-scale solar deployment.
I am also particularly proud to bring together leaders from both the United States and India to make this investment and commitment to America’s clean energy future.”
Sriram Das, VSK Energy Co-Chairman
As per the report, renowned solar engineering firm Mortenson will lead the development of both project phases. It apparently intends to hire pipefitters, electricians, sheet metal workers, plumbers, operators, carpenters, laborers, and safety professionals, among others, from the local communities associated with the project.
“With our 17 years of experience in solar manufacturing, combined with the VSK team’s commitment to a clean energy future, we look forward to driving the solar industry forward and setting a new benchmark for innovation and efficiency in solar manufacturing in the United States.”
Gyanesh Chaudhary, Vikram Solar Chairman, and Managing Director
See Also:
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VSK Energy LLC has made a momentous commitment to the renewable energy sector in the United States. With a staggering investment of up to $1.5 billion, VSK Energy is poised to establish solar manufacturing plants that will revolutionize the solar energy supply chain in the country.
Solar energy arguably reduces reliance on fossil fuels, enhancing energy independence and security for the United States. By diversifying the energy mix and tapping into domestic solar resources, the country can reduce its vulnerability to global fuel price fluctuations, among others. Apart from that, the growth of the solar sector stimulates local economies, attracting investments, creating skilled jobs, and driving economic growth.
