AndaSol-1, a progress report

Following our first press release (May 24, 2007), in which we announced to be elected as turnkey supplier of molten salts to the Andasol-1 solar power station, we are delighted to announce that our consortium, that consists of Durferrit GmbH, SQM Europe NV and Haifa Chemicals ltd, finished successfully the on-site melting process and supply of 28,500 Tonnes of nitrate salts that will be used for the thermal storage of solar energy.

This ca. 300 million Euro project is for the construction of a 50 MW electricity-generating plant, implementing an advanced method of harnessing solar energy. AndaSol-1 project collects thermal energy from a 50-hectare solar field near Guadix in Andalucía, Spain, during daylight hours. Most of this energy is used directly for steam generation by a steam-driven turbo-generator. But about one-third of this energy is initially stored in molten salts during the day, and then recovered during the night, extending thereby, the power station operation by additional 7-8 hours per day.

It is assumed that Andasol-1 will generate 178,000 MWh of renewable electricity per year, whereas the same field of solar collectors and turbine, without molten salts would turn out just 117,000 MWh, a difference worth more than 24 million Euros (US $30 million) per year at today's power prices.

Currently all 28,500 Tonnes of Haifa's potassium nitrate and SQM's (Chile) sodium nitrate have been melted down within just 75 days, by a furnace supplied by Durferrit (Germany) of 4 meter in diameter and 5 meter high, with 12,400 KW burners. The molten mixture has been brought to a temperature of ca. 400 Celsius, and stored at this temperature until the final startup of Andasol-1.

ACS Cobra and Sener, owners of the project, plan to finish the construction and connect to the grid within the next couple of weeks before the end of the year.

Successful completion of the Andasol-1 molten salt project places the three supplier companies in an advantageous position for future solar energy projects. Many more 50 MW plants are planned in Spain. In the United States, utilities in California and other Southwestern States have announced plans (or contracted) for similar projects, for which we are also in progress to offer our services.