Sunset in the North: Norwegian Crystals’ Ambitious Solar Dreams Dim Amid Financial Hurdles
Norwegian Crystals (NCR), a Norway-based solar ingot, bricks, and wafer start-up, has filed for bankruptcy, marking a setback for Europe’s aspirations of establishing a vertically integrated domestic solar PV manufacturing value chain. The Salten and Lofoten District Court in Norway has issued a liquidation order for NCR. The company had been facing financial challenges, especially concerning its expansion plans. Last year, NCR secured a strategic investment from EIT InnoEnergy to expand the 500 MW fab it operates in Glomfjord. The company aimed to expand its capacity to 4 GW by 2025 and eventually 10 GW. However, due to insufficient capital and the inability to finalize a promising process with an international industrial partner, the management decided to opt for an immediate tender offer. Interestingly, the building that NCR operates in previously housed a solar cell factory of REC, which shut down in 2012, leading to the bankruptcy of REC’s subsidiary REC Wafer Norway.
The original news is “A Rude Shock For European Vertically Integrated Solar Manufacturing Dreams As NCR Goes Bust.“
The shutdown of REC’s factory and now Norwegian Crystals in the same building does raise questions about broader challenges that might be impacting solar companies in the region.
| Potential Challenge | Description |
|---|---|
| High Operational Costs | Norway’s high labor and operational costs might challenge solar companies operating on thin margins. |
| Access to Raw Materials | Proximity and cost of importing necessary components can impact profitability. |
| Market Dynamics | European solar manufacturers face competition from dominant Asian manufacturers, affecting pricing. |
| Regulatory Environment | Norway’s high labor and operational costs might challenge solar companies operating on thin margins. |
| Technological Advancements | Continuous R&D investment is needed to stay competitive; lagging behind can reduce market share. |
| Infrastructure and Logistics | Logistical challenges might increase the cost or time of transporting goods to key markets. |
| Economic Factors | Broader economic challenges, like recessions, can impact the demand for solar products. |
| Local Expertise and Workforce | A lack of local expertise or skilled workforce can pose operational challenges for solar companies. |
While these are potential challenges, conducting a detailed analysis is essential to determine the specific factors that led to the difficulties REC and Norwegian Crystals faced in that particular region.