Individual solar cells, which are assembled into panels at the Heliene plant in Mountain Iron plant. Heliene will build another plant in the Twin Cities. (Anthony Souffle, Star Tribune/The Minnesota Star Tribune)

Canadian solar panel maker Heliene Inc. will spend $145 million to open a plant in the Twin Cities, its second in Minnesota.

"There is a very strong demand in the U.S. for the product," said Martin Pochtaruk, president of Heliene, based in Sault Ste. Marie, Ontario.

Heliene's Iron Range plant is one of the largest solar panel manufacturers in the country.

The company has not yet selected a site in the Twin Cities, Pochtaruk said, but plans to create 470 jobs and start production in late 2024. Heliene is currently seeking 300,000 square feet of existing industrial space for the plant.

The $145 million budget will pay for equipment and ancillary services.

Heliene last year opened a $21 million expansion of its plant in Mountain Iron and employs 155 workers there. Pochtaruk said another 120 jobs will be added by the end of the year.

"They provide good solid wages and tax base for us. It's been a good project," said Mountain Iron City Administrator Craig Wainio.

The Inflation Reduction Act (IRA), passed in 2022, created federal incentives for renewable energy including tax credits for solar manufacturers to spur domestic industry. China currently controls more than 80% of the solar panel market.

Pochtaruk said that the IRA is boosting sales in the industry: "That is making demand consistent and growing."

On the Iron Range, Heliene set up shop at a facility vacated by a defunct Minnesota solar panel maker.

Heliene benefited from incentives from the state of Minnesota. From 2018 to 2022, the state provided the company about $15 million in financing from the Minnesota Department of Employment and Economic Development (DEED) and the Iron Range Rehabilitation and Resources Board (IRRRB) toward setting up operations and expanding the facility in northern Minnesota.

The state also is talking to Heliene about its plans for a new facility.

"DEED has had discussions with Heliene leadership about their expansion plans, and we'll continue that dialogue," department spokesman Devin Henry said.

The privately owned company also produces solar panels in Ontario. It does not disclose its overall revenue or profits.

"Heliene will be creating great jobs for Minnesotans by manufacturing solutions that combat climate change," said Peter Frosch, CEO of regional economic development group Greater MSP, in a statement. "This announcement reflects a broader trend we're seeing in our region toward advanced manufacturing opportunities in clean tech and decarbonization technologies."

Golden Valley-based Mortenson ranks fifth on a 2023 list of top solar contractors by Solar Power World, a solar-focused media outlet.

"The solar industry is poised for incredible growth that will see record levels of new installations year-over-year for the next decade and beyond," said Brad Heitland, director of business development for Mortenson, in a statement. "The Inflation Reduction Act has created incentives to help bolster the domestic supply chain, generate substantial job growth, and incentivize new project deployment, which will be vital in meeting the demands of the market,"