Sunpower shares plunge amid job loss announcements
Shares in SunPower nose-dived yesterday after the company scrapped goals to break even this year and announced it would cut 15 percent of its workforce.
The second-largest US solar manufacturer said that aggressive Power Purchase Agreement (PPA) pricing by new market entrants had a negative impact on its near-term returns. In addition, the company claimed the extension of tax credits for renewable power “reduced the urgency” to complete solar projects by the end of this year.
SunPower will close a Philippine panel assembly factory and shift the equipment to Mexico, resulting in the loss of 1,200 employees. “This change will optimize our supply chain and move final panel assembly closer to our key markets,” the company said in a statement.
SunPower also posted a second-quarter net loss attributable to shareholders of of $70 million, compared with a profit of $6.5 million last year.
However, the company continues to anticipate revenues of nearly $3 billion for 2016, while it expects a loss of somewhere between $125 million to $175 million for the year.
SunPower is planning to take restructuring charges of $30 million to $45 million, mostly incurred in the third quarter.
Following the announcements, SunPower shares fell 29 percent to $10.49 in after-hours trading.
Image courtesy of Sunpower
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.