Quantum, Asola to expand in Europe

IRVINE, USA: Quantum Fuel Systems Technologies Worldwide Inc. announced that its German solar photovoltaic partner, Asola has signed an agreement to establish a joint venture in Southern Italy, to enable production and distribution of high quality, German-designed solar modules in Italy.

The Italian partner, Eurobox Impianti s.r.l., is a leading developer of renewable energy projects including wind and solar power projects. The initial capacity is 30 MW (megawatts of peak power) solar modules consisting or mono- and poly-crystalline silicon solar modules, with a potential to generate revenues in excess of $100 million annually. Asola will hold the controlling stake in this joint venture.

"This deal gives us access to the Italian market, which is the third largest solar energy market in Europe with potential for 250 MW in 2009," commented Reinhard Wecker, the founder and CEO of Asola. "Our partner brings significant experience in this fast-growing market. Their in-house project development and system integration capabilities allow them to undertake large solar power projects. We are happy to bring our 20-years of German solar experience and global sourcing knowledge to this key market."

"This agreement represents an important milestone for Asola and Quantum", said Alan P. Niedzwiecki, President and CEO of Quantum. "With the recently announced tripling of Asola's manufacturing capacity in Germany, and planned expansions Korea, Italy, and in California, we will be well-positioned to play an important role in the global solar energy industry."

Quantum holds a 25 percent stake in Asola, and has initiated discussions related to an expanded partnership in a "Centralized Holding Structure". Quantum and Asola have entered into a long-term supply agreement with Ersol Solar Energy AG for the procurement of 155 MW of high-efficiency silicon photovoltaic solar cells, starting in 2008.

Together with supply contracts with other major suppliers around the world (i.e. SUNERGY, MOTECH and others), the Ersol agreement guarantees a steady supply of solar cells to Quantum and Asola. Resulting sales from these supply agreements are anticipated to generate in excess of US $600 million for Asola and Quantum.