Moses Lake Plant To Benefit From Inflation Reduction Act
REC Silicon of Moses Lake is praising the recent passage of the Inflation Reduction Act by Congress.
The company released its 2nd Quarter Results Wednesday, saying the bill is expected to drive large scale investments to develop a robust solar supply chain in the United States.
REC Silicon produces solar grade polysilicon for use in in solar panels.
It plans to reopen it's Moses Lake plant next year, after it was shut down in 2019 because of unstable market conditions and Chinese tariffs on polysilicon.
The company says the Inflation Reduction Act provides a number of critical tax incentives that will directly benefit the plant.
"REC Silicon’s US based manufacturing facilities are ideally positioned to ensure that the objectives of this landmark legislation are realized," said company CEO James A. May II.
"In addition, the passage of this legislation underpins REC Silicon’s decision to restart 100 percent of our FBR production. Efforts are well underway to restart our Moses Lake facility and we plan to achieve first production during Q4 2023."
May II said the bill's tax reimbursement package will bring an additional $45 million-$50 million per year to the Moses Lake polysilicon operation.
Generally speaking, the Inflation Reduction Act provides $370 billion in tax incentives for consumers and businesses that produce or invest in renewable energy products like solar panels and their components.
In a conference call Thursday, May said the company will be eligible for a $3-per-kilogram refundable tax credit for every kilogram of solar-grade silicon the company sells.
The company produces solar-grade silicon for solar panels in Moses Lake.
REC Silicon also produces electronic-grade silicon for use in making computer chips and flat panel displays in Butte Montana.
The company is based in Norway.