The news that Tianwei New Energy Holdings took over Honolulu-based Hoku Scientific is good news for Pocatello and the state of Idaho.

The Chinese company’s takeover of cash-strapped Hoku means it will be able to finish building its Pocatello polysilicon plant and keeps Idaho nascent alternative energy industry moving forward. Hoku had put construction of the $390 million plant on hold and there were many people beginning to doubt whether the state’s investment in tax credits to lure the manufacturer here.

Hoku signed a $43 million tax increment financing deal with Pocatello and a deal with Idaho Power so it will receive guaranteed enough power to support 4,000 tons of polysilicon production annually at a fixed rate for four years.

Those incentives made Hoku a player in the small world of polysilicon manufacturers. Polysilicon, used in microchips, is a basic material for solar energy equipment. But Hoku found that it was hard to raise the kind of capital necessary for the business.

Most of its money came in the form of prepayments for product but when the economy cooled, the capital market dried up.

Tianwei converted its own $79 million in prepayments into $50 million worth of Hoku stock. It also announced it would loan Hoku an additional $50 million.

Hoku’s Pocatello plant will create 250 jobs when it is fully on line. Idaho Commerce Secretary Don Dietrich was always confident the plant would be built.

But Tianwei’s takeover means the Hawaii initial investors won’t see the full fruits of their investments. CEO Dustin Shindo gambled on the high value and short supply of polysolicon and lost, reported the Pacific Business News.

But Idaho may still win.