On June 3, GCL Technology announced that it will explore potential cooperation opportunities with Mubadala Investment Company PJSC (hereinafter referred to as "Mubadala Sovereign Fund") to establish a comprehensive silicon ecosystem with global and regional significance in the UAE.
GCL Technology said that in May this year, its wholly owned subsidiary GCL Technology (Suzhou) Co., Ltd. and MDC POWER HOLDING COMPANY LLC, a wholly-owned subsidiary of Mubadala Sovereign Fund, signed a cooperation agreement to discuss the joint development of the UAE's first polysilicon production facility.
The reporter noted that accelerating overseas layout is a new engine for GCL Technology to promote internationalization and seek counter-cyclical growth, especially after the modularization and scale advantages of granular silicon are gathered and detonated, laying a solid foundation for the company to invest overseas to achieve faster replication and lower costs. GCL Technology stated in its 2023 financial report that after two years of careful planning, the company's polysilicon project in the Middle East is expected to start construction in 2024. This strategic move aims to promote China's manufacturing industry to the high end of the value chain with low-carbon, low-cost, and high-quality granular silicon technology as the core.
The United Arab Emirates, known as the "Desert Rose", is located on the Persian Gulf. It is the intersection of the land and sea Silk Roads and one of the first countries to respond to the "Belt and Road" initiative. The UAE has excellent lighting conditions, with an average annual effective power generation time of 3,000 to 4,000 hours. There are many opportunities and space for the development of large-scale photovoltaic power stations. In recent years, the UAE has accelerated the development of new energy and regarded it as an important pillar for achieving sustainable development. According to the UAE government's "National Energy Strategy 2050 Update", the share of clean energy in its total energy structure will increase to 30% in 2030, and the UAE government's investment in the energy sector will increase by 150 billion to 200 billion dirhams (about 40 billion to 54 billion US dollars) in the next seven years, and the installed capacity of renewable energy will more than double to 14.2GW.
"In recent years, the UAE government has continuously increased its investment in the field of renewable energy, providing a good development environment for the photovoltaic industry and attracting many foreign manufacturers to invest. With this layout, GCL Technology may be able to deeply participate in the construction of the photovoltaic industry chain in the Middle East and even the world and empower the development of the global green energy industry." A senior analyst told reporters.
According to the announcement, Mubadala Sovereign Fund manages diversified assets and investment portfolios in the UAE and abroad to create sustainable financial returns for its shareholder, the Abu Dhabi government. The establishment of Mubadala Sovereign Fund aims to promote the diversification of Abu Dhabi's economy by investing in traditional and non-traditional fields around the world, bringing significant positive impacts to the local GDP, and creating new job opportunities for the new generation of the UAE.
Source：Solarzoom
