The letter of intent is non-binding, and intended as a framework for further discussions and negotiations. Under the terms of the letter of intent, the two companies will begin the process of structuring a solar project financing fund that could be as large as $50m, which would provide funding for the installation and operation of commercial, industrial, and utility-scale PV projects via power purchase agreements.
Dustin Shindo, chairman and CEO of Hoku, said: “We are extremely pleased to continue strengthening our relationship with Tianwei, and look forward to pursuing this opportunity.
“With Hawaii’s feed-in tariff expected to go into effect this year, we believe that a dedicated pool of project capital would provide real competitive advantage in Hawaii’s rapidly evolving PV market.”
Based-in Chengdu, China, Tianwei New Energy is a subsidiary of Baoding Tianwei Group, a Chinese manufacturer of power transmission equipment and green energy products.
