First Solar, Dow sign PPA for 150 MW in Texas

First Solar Inc (NASDAQ:FSLR) has inked a 15-year power purchase agreement (PPA) for 75% of a 200-MW solar project in Texas with chemical company Dow Inc (NYSE:DOW), the US thin-film photovoltaics (PV) maker said today.

The company had previously announced the signing of the contract without identifying the other party.

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Under the agreement, Dow will power its Gulf Coast operations, which are the biggest petrochemical site in the western hemisphere, with electricity generated by First Solar's Horizon Solar project in Frio County. The capacity covered by the PPA will produce enough power to supply 25,000 average Texas households and save 147,000 metric tonnes of carbon dioxide (CO2) a year.

The Horizon Solar project will use First Solar's Series 6 PV modules, which are equipped with a number of advanced technologies, including encapsulant films provided by Dow.

The PPA is part of Dow's efforts to achieve its sustainability target of supplying power from 750 MW of renewable sources by 2025, the company's global business director for energy and climate change, Edward Stones, commented.