Apollo Solar Energy has signed an agreement with the Ningguo Municipal Government to build a 2MW demo solar power station in Ningguo City, China.

Under the agreement, Apollo Solar will invest approximately $8.75m to build the solar power station and will be responsible for construction of the entire project, including planning, design, construction and installation of the power station.

The power station is expected to become operational in September 2010. The agreement provides for the payment of subsidies to Apollo Solar from central, provincial and local government entities in China for electricity generated by the project.

Renyi Hou, CEO of Apollo Solar, said: “We are very pleased to sign the agreement with Ningguo Municipal Government to build the 2MW demo solar power station, the first project of those contemplated by the non-binding letter of intent signed in April between Apollo Solar and the Ningguo Municipal Government.

“Apollo Solar has purchased 2MW of thin film solar panels in the US and we expect the shipment to arrive at Ningguo City in mid-June of 2010. We then anticipate completing the installation of the 2MW of thin film solar panels, and beginning testing of the operation, by the end of September, 2010.”

Apollo Solar, through its wholly-owned subsidiary Sichuan Apollo Solar Science and Technology, is primarily engaged in refining and producing tellurium and tellurium-based metals for specific segments of the electronic materials market. The company’s products include CdTe thin-film compounds, CIGS thin-film compounds, ultra-high purity metals and commercial-purity metals.