Areva enters solar business with Ausra buy
09 Feb 2010
French nuclear power giant Areva has entered the solar power business by acquiring start-up concentrated solar plant designer Ausra Inc, becoming the world leader in concentrated solar thermal energy in the process.
Paris-based Areva, the world's largest nuclear plant builder, on Monday announced the acquisition of Mountain View, California-based designer, manufacturer and seller of solar power stations for an undisclosed sum.
Ausra, a leading provider of large-scale concentrated solar power solutions for electricity generation and industrial steam production in the US, was set up in 2006. The company had raised $130 million through venture capital investors like Khosla Ventures and Kleiner Perkins Caufield & Byers.
The market for concentrated solar power plants is expected to grow substantially in the next decade, with an average annual growth rate of 20 per cent, and should reach an estimated installed capacity of over 20 GW by 2020.
The acquisition fits Areva's business strategy to be the world leader in concentrated solar power (CSP), and help strengthen and diversify its renewables portfolio.
"Combining Ausra's proven technology and AREVA's world leading engineering, procurement and construction (EPC) skills, the group is committed to building the most cost-effective CSP plants for utilities, independent power producers and industrial customers around the world, Areva said in a statement.
"Today is about making a strong company even stronger. With Areva, Ausra is joining forces with one of the world's global energy leaders. Combining Areva's financial and commercial strengths, and its energy expertise, with Ausra's proven technology and experienced management team will help position Areva for even greater success in the renewable and carbon-free energy industry," said Ausra's chairman and CEO Robert Fishman.
Ausra's headquarters in California will now become the headquarters of Areva's new solar business unit and the French nuclear giant will expand Ausra's workforce of 70 employees to 120 globally.
Areva plans to enter the markets in the US, the Middle East, Europe and South Africa initially and later expand globally by building concentrated solar power plants for utilities, independent power producers and industrial companies.
