Green push: US DFC clears $ 500 million debt financing for First Solar

The U.S. International Development Finance Corporation (DFC) on Tuesday approved $ 500 million in debt financing for First Solar, a Nasdaq-listed company, to support the company’s solar module manufacturing plant in Tamil Nadu with an expected annual capacity of 3.3 Gw.

The deal is subject to final agreement negotiations, DFC said in a statement.

“Like the United States, India has recognized that it must shape its own sustainable energy future and has sought to boost the expansion of its domestic solar generation capacity,” said Mark Widmar, CEO of First Solar.

Most of the output from the new facility is expected to be sold in the rapidly growing solar market in India, a Quad ally and a key US partner in the Indo-Pacific region, the statement said.

The funding offered by DFC promotes the United States’ commitment to tackle climate change at home and abroad and supports India’s ambitious renewable energy goals, the statement added.

India recently pledged to increase its non-fossil energy capacity to 500 GW by 2030 and reduce the carbon intensity of its economy to 45%.

First Solar announced its proposal to build the facility in India in July 2021, shortly after unveiling plans for a new $ 680 million plant in Ohio that will add 3.3 GW of new manufacturing capacity. national in the United States by 2023.

Carol M. Barragan