Oil distributor Showa Shell Sekiyu is planning to build one of the world’s largest solar panel plants in Japan, with an annual capacity of about 1,000mw. The project will require an expenditure of over Y100 billion ($943.5million), reports the Nikkei.

The plant will be completed in 2011, and will soon relegate Sharp’s Katsuragi facility in Nara region, which currently is said to be among the world’s biggest solar cell plants with an annual capacity of 710mw.

It will use Showa Shell's proprietary technology, with next-generation solar cells made of components such as copper and indium. This will minimise the cost, as silicon, which is used in mainstream cells, has become pricier because of its tight supply.

Japanese prime minister Yasuo Fukuda has set goals for increasing the use of solar cells, by 10 times from the current level by 2020 and 40-fold by 2030. The Ministry of Economy, Trade and Industry is also considering subsidies and tax breaks for households turning to solar power.

In addition to Japan, the company plans to sell to Europe and the Middle East, where there is considerable demand for solar panels. X