SOURCE: Hoku Scientific, Inc.

November 19, 2008 16:27 ET

Hoku Secures Key Materials for Polysilicon Production

POCATELLO, ID--(Marketwire - November 19, 2008) - Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to manufacture and sell polysilicon for the solar market, today announced the signing of an HCl supply agreement with BHS Acquisitions, LLC, a wholly owned subsidiary of BHS Marketing, Inc., and a leading chemical supplier with bulk liquid transloading facilities in Nampa, Idaho, that are serviced by Union Pacific Railroad. BHS's customers include Alcoa and Rio Tanta (Alcan).

HCl and metallurgical grade silicon are the two primary starting materials for the manufacture of trichlorosilane, which is the key raw material for the production of solar grade polysilicon using the Siemens process. The supply contract with BHS, coupled with the metallurgical grade silicon contract with Polymet, mean that Hoku has now secured enough key starting material to operate the plant into 2010.

According to the terms of the agreement, BHS will supply Hoku with guaranteed amounts of HCl for eight years beginning in 2009. The guaranteed annual amount of HCl is expected to be enough to support the continuous operation of Hoku's trichlorosilane plant, which would enable the production of approximately 4,000 metric tons of polysilicon per year.

"We are pleased to be working with BHS," said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. "Their operations in Idaho can receive and store liquid chemicals from railroad shipments, which will improve our overall supply chain logistics. In addition to being the ideal supplier of HCl for Hoku, we are pleased that we could find a supplier based in the State of Idaho so that we may further support the local economy."

"BHS is excited to partner with Hoku as their long-term HCl supplier," said Michael Merlo, Vice President of BHS Marketing, Inc. "As a long-time supplier of industrial chemicals in the Pacific Northwest, our growth into the solar sector is a natural fit for us. Hoku is a leading company in this area, and we look forward to working with them."

About Hoku Scientific, Inc.

Hoku Scientific, Inc. (NASDAQ: HOKU) is a diversified, clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market, and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar is a provider of turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information visit www.hokucorp.com

Hoku® and Hoku Scientific® are registered trademarks and Hoku Solar™ and Hoku Fuel Cells™ are trademarks of Hoku Scientific, Inc. Hoku Materials™ is a trademark of Hoku Materials, Inc. All rights reserved.

About BHS Marketing, Inc.

BHS Marketing began in August of 1998, when it acquired REP Chemical / Western Briquette (founded in 1977). Headquartered in Salt Lake City, BHS Marketing has branches in Idaho and Colorado along with warehouses throughout the United States. BHS Marketing is an active member of the National Association of Chemical Distributors (NACD) and participates in the Responsible Distribution Process(SM); promoting the best management practices in the industry and community. For more information visit www.bhsmarketing.com

Safe Harbor Statement

This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to Hoku Materials's completion of its polysilicon production facility and its ability to successfully produce polysilicon; Hoku Materials's ability to produce up to 4,000 metric tons of polysilicon annually; BHS Acquisitions' ability to deliver HCl within the specifications and in the amounts provided for under the agreement; the amount of HCl that will be sufficient to produce 4,000 metric tons of polysilicon annually; Hoku Materials's cost to purchase HCl; BHS Acquisitions' ability to deliver HCl on time to meet Hoku Materials's planned trichlorosilane plant start-up, commissioning, and production ramp-up; Hoku Scientific's future financial performance; Hoku Scientific's business strategy and plans; and objectives of management for future operations. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause Hoku Scientific's actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in Hoku Scientific's filings with the Securities and Exchange Commission, as applicable. Except as required by law, Hoku Scientific assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Contact Information

  • For more information contact:

    Hoku Scientific, Inc.
    808-682-7800
    Email Contact

    BHS Marketing, Inc.
    208-466-8437