Swedish firm Cleanergy has announced that start of installation of its Stirling concentrated solar power (CSP) technology in China, for a 200MW project that has a potential value of around SEK5bn ($575m).

In April, Cleanergy had signed an agreement with Datang Holdings New Energy Technologies (Datang), a Chinese energy company, for the project. 

The deal included the manufacturing, installation and development of Cleanergy’s advanced Stirling CSP technology in the country.

The firms will initially install 50MW capacity in 2018, while the remaining 150MW will be installed as a second step that includes energy storage.

Cleanergy is expected to supply close to half of the project value, while Datang will secure government approvals in   China and financing.

Datang director Wang Xu said: “Our goal is to make the Stirling solar application dominant in China for new energy and manage to get its cost level competitive by localization.

Cleanergy, along with Datang, is preparing a project feasibility report to understand the full cost reduction potential by localizing production in China. It will star with component sourcing and assembly of the dish concentrator.

Cleanergy CEO Jonas Eklind said: “China is an important market for Cleanergy with a potential of 10 GW installed solar energy with storage by 2030. We have been present in the region since 2010 and the first to come this far with Stirling CSP.

“There is no doubt that there is currently an extremely strong momentum in the solar energy market, in particular solar energy in combination with energy storage.”

Based in Gothenburg, Cleanergy supplies Stirling engine-based renewable energy solutions to its customers.

Based in Beijing, Datang business activities include investment, development and management of new energy technology and new energy projects.