Oman polysilicon project secures $480m loans

United Solar Holding has secured $480 million to develop its $1.6 billion polysilicon manufacturing facility in Oman’s Sohar Free Zone.

The debt financing was obtained by United Solar Polysilicon, a wholly owned subsidiary, from the International Finance Corporation and partner banks, the state-run Oman News Agency reported. 

Additionally, the subsidiary has secured more than $400 million in term debt and working capital facilities from local commercial banks.

The state-backed Oman Investment Authority’s Future Fund Oman has become United Solar’s largest shareholder, with a $260 million investment. 

USP is expected to begin polysilicon production this year. 

The facility will have an annual production capacity of 100,000 tonnes of polysilicon, a vital ingredient in solar panels. At full capacity, it is expected to produce 40 gigawatts of solar modules annually. 

“More than 80 percent of our capital has been provided by Omani institutions, regional and local banks, and the IFC,” said Sam Zhang, USP founder and chairman.

In December, USP signed a $200 million loan to build a renewable energy plant in Sohar.

Oman is targeting a 40 percent contribution from renewables to its electricity requirements by 2040 as it looks to wean its economy off a reliance on hydrocarbons and achieve carbon neutrality by 2050.

Further reading:

• Oman GDP rises on growing non-oil revenues
• Oman plans $2bn borrowing to cover budget deficit
• Oman revenue hit by drop in oil and gas income