Solar Glass Plant Study Shows US$670M NPV, 20.2% IRR and 7.6-Year Payback
BFS•Bankable feasibility study for Brazil solar glass plant yields base-case NPV of US$670 million, IRR of 20.2% versus 4.6% WACC, US$396.5 million CAPEX and 7.6-year payback. The plant will reach 288,300 tonnes capacity with projected 2030 revenue of US$294.3 million, OPEX of US$143.3 million and a 50% gross margin.
1. Feasibility Study Confirms Robust Economics
The bankable feasibility study for the Belmonte, Bahia solar glass plant indicates a base-case NPV of US$670 million (US$829 million at 105% capacity) and an IRR of 20.2% (23.1% at 105%), significantly surpassing the project’s 4.6% WACC, with a US$396.5 million upfront CAPEX and a 7.6-year payback period.
2. Production Capacity and Timeline
The plant is designed to commence operations in November 2028, ramping to a full run-rate capacity of 288,300 tonnes per annum by Year 5, with furnace designs capable of reaching 10% above nominal output to meet Brazil’s growing solar sector demand.
3. Projected Financial Performance
By 2030, the operation is forecast to generate annual revenue of US$294.3 million against operational costs of US$143.3 million, delivering approximately a 50% gross margin; by 2033, revenue and OPEX are projected to reach US$344.9 million and US$167.6 million respectively.
4. Strategic Location and Environmental Features
Located adjacent to a low-iron silica sand mine owned by the company, the site supports a potential second production line and includes on-site photovoltaic power to reduce grid dependency and align with lower-carbon production goals, positioning the company as a first mover in the Americas.
