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By Theo Burman
Live News Reporter
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Plans for a $400 million solar cell facility in Colorado have been scrapped just two months after Secretary of State Anthony Blinken highlighted the project as an example of world-leading foreign investment.
The Intel semiconductor plant in Colorado Springs was slated to be converted into a solar cell facility by the Swiss solar panel manufacturer Meyer Burger.
However, on Monday, the company announced the plans would not go ahead, stating in a press release that the construction was "currently not financially viable and has been put on hold."
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The scrapping of the project comes only two months after Secretary Blinken highlighted Meyer Burger's plans as an example of how the U.S. remained a top destination for international investment.
A spokesperson for Meyer Burger told Newsweek: "Our solar cell manufacturing facility in Colorado Springs, Colorado has been put on hold due to an unexpected negative outcome with the financing that Meyer Burger anticipated would close in August.
"One of the key factors was increasing US construction costs. Meyer Burger remains committed to solar manufacturing in the US – for now at our site in Goodyear, Arizona where we produce solar modules."
Newsweek contacted the Department of State for comment on the latest development.
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At the SelectUSA Investment Summit in June, Blinken said: "Over the past three years, businesses from around the world have invested more than $1 trillion in the United States, supporting millions of jobs across this country.
"We're proud that, in addition to being the leading provider of foreign direct investment around the world, the United States also remains the world's top destination for foreign investment.
"Meyer Burger, a Swiss industrial technology company, is devoting $400 million to launch a new solar facility in Colorado, which will generate more renewable energy for homes, for businesses, for electric utilities."
Meyer Burger initially planned to use tax credits from the Inflation Reduction Act, passed by President Joe Biden, to fund the majority of the construction work. The company stated that "the debt financing previously sought through the monetization of 45X tax credits will continue to be pursued on a reduced scale, tailored to module production in the U.S."
"In connection with the strategic changes, the Board of Directors has instructed the Management to draw up a comprehensive restructuring and cost-cutting program. This should take account of the realignment and thus lead to sustainable profitability," the company said in its statement.
Meyer Burger also scrapped plans to expand on a solar cell facility run by the company in Arizona. Instead, it will continue maintaining the facility at its current capacity, saying that it is "focusing on the nominal capacity of 1.4 gigawatts at the module production plant in Goodyear, Arizona, U.S., which is already largely installed and in the ramp-up phase."
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