FFO invests $156m in polysilicon project

MUSCAT: Global solar manufacturing firm United Solar Holding Inc, which is constructing one of the Middle East’s largest polysilicon plants at Sohar Freezone, has announced that it has received an investment of $156 million from Future Fund Oman (FFO), a new investment vehicle launched by Omani sovereign wealth fund Oman Investment Authority (OIA).

The Omani facility, owned and operated by United Solar Polysilicon (FZC) SPC, will boast a world-scale annual capacity of 100,000 tonnes of polysilicon – a critical ingredient in the manufacture of solar panels, among an array of components, such as integrated chips and sensors for the global electronics industry.

When operational sometime next year, the $1.6 billion mega project has the potential to catapult the Sultanate of Oman into the ranks of leading nations with the capability to produce this strategically vital commodity, which also has the potential to ignite investment inflows into a thriving downstream sector in the country.

Hailing the Future Fund Oman’s investment in the Sohar Freezone project, Longgen Zhang, Founder and Chairman of United Solar, commented: "We are delighted to welcome FFO as a strategic investor and partner. We deeply appreciate all the support from the Oman authorities and our industrial partners. Our dedicated team from the global solar industry is committed to building a world-class business and accelerating the transition to a carbon-free world."

Rashid Sultan al Hashmi, Senior Manager of FFO, added: "FFO's investment in United Solar represents a milestone in Oman's journey to becoming a key player in the renewable energy manufacturing supply chain. This strategic initiative closely aligns with Oman Vision 2040, which seeks to foster a diversified and resilient economy. United Solar is poised to establish itself as a leading manufacturer of solar products, offering competitive solutions to meet growing global demand. This new facility will enhance Oman's standing in the renewable energy market and serve as a catalyst for further foreign direct investment (FDI). This project is expected to attract further downstream investments in Oman's solar manufacturing value chain."

The announcement follows Wednesday’s revelation by the Future Fund Oman that it is investing in a total of three pivotal projects linked to an emerging polysilicon and downstream ancillary industry in the Sultanate of Oman.

Besides United Solar Polysilicon, the FFO-backed IDG Oman Investment Fund, in partnership with the Chinese IDG Capital Fund, will leverage its diversified investment expertise to drive progress in ICT, renewable energy, and electric vehicles in Oman. Likewise, the FFO-affiliated eWTP Oman Fund, in collaboration with the Chinese eWTP Capital Fund, will strategically invest in sectors such as ICT, energy, tourism, and agriculture.

Earlier this week, United Solar Polysilicon said construction work on its plant has entered a critical phase. “We're thrilled to announce that USP’s 100,000-tonne annual high-purity silicon-based material project in Sohar Freezone, Oman, has officially entered the installation phase!”

United Solar noted in a post that it had completed the successful lifting and installation of a number of large pieces of heavy equipment. “These major milestones mark the beginning of the central equipment installation, laying a solid foundation for the project's next phase,” the company added.