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United Polysilicon Solar, a subsidiary of United Solar Holdings, has achieved financial close on its planned USD 1.6 bn polysilicon plant in the Sohar Freezone, after securing OMR 185 mn (USD 480 mn) in a long-term syndicated loan led by the International Finance Corporation (IFC) and OMR 154 mn from local banks. The financial close comes as the plant prepares to launch in 1Q this year, with planned capacity of 100k metric tons per year.
Why it matters
Backing solar supply chains: Polysilicon, a high-purity state of silicon, is a key raw material critical for the solar panels’ supply chain. The plant’s production of this raw material is expected to support the production of up to 40 GW of solar panels annually — in our calculation, based on the Australian PV Institute guidelines — making it a critical part of Oman’s plan to establish a solar industrial base in Sohar.
REMEMBER- Oman has been courting major players in solar panel production. For example, China-based JA Solar is now building a USD 565 mn solar cell plant in Sohar that will produce 9 GW of solar cells and modules, with production slated to begin in 1Q of this year. China’s Q-Sun Solar also said in 2024 that it intends to develop a 10 GW solar cell and module production plant in Sohar.
The factory could also give Oman a solid foothold in the global supply of polysilicon, which is 90% controlled by Chinese production. The world produces about 3.5 mn metric tons of the raw material, meaning the plant is set to produce almost 3% of global production.
Our take: The plant’s promise fully hinges on production quality
The world is currently overproducing polysilicon, with the current supply outmatching the 1.9 mn metric tons of demand for the raw material. That means the new factory must produce high-quality, efficient polysilicon to secure production uptake abroad.
Still, we expect the project to play a role in Oman’s localization push to turn Sohar into an integrated production base for the solar industry, with the country making headway on projects that will also produce final-stage products such as solar panels.
