Solar Millennium AG signs framework agreement with China

Solar Millennium AG, Erlangen, signed a framework agreement today as part of the fourth Chinese-German Hightech Forum in Peking, to provide solar-thermal power plants with a total capacity of 1,000 MW by 2020, together with local companies. The first large-scale solar power plant is to be implemented within a short period of time in Inner Mongolia and will provide a capacity of 50 MW.

Parabolic trough technology, developed and tested by Solar Millennium, is to be used. A total of 200 MW of solar-thermal power plants are to be implemented within the next four years as part of the German-Chinese cooperation. Flagsol GmbH, a technology daughter company of Solar Millennium AG, is also included in the framework agreement.

Today's signing of the framework agreement was preceded by several preparatory measures. Last fall, for example, locations in a total of three Chinese provinces were inspected, together with the Chinese Energy Ministry.

Christian Beltle, the Chairman of the Board of Solar Millennium AG, was very pleased with the framework agreement: "China has included solar-thermal power plants in its new five-year plan, thereby implementing an important technology that can replace conventional fossil power plants, in good time. I consider this to be a forward-looking decision based on the sharply-increasing energy demand in China." A law regarding the implementation of renewable energies was introduced in China in January 2006. The aim is to raise the proportion of energy generated from renewable sources by 10 %. This corresponds to a capacity of approx. 100,000 MW.

The technology
Solar-thermal power plants generate electricity using the heat caught from solar radiation. In a parabolic trough power plant, trough-shaped mirrors focus the incident solar radiation onto a pipe in the focal line of the collector. A heat transfer medium in the pipe is heated, and this generates steam in the power block section using heat exchangers. The steam is then used to operate a turbine which generates electricity in the same way as in conventional power plants. Integration of a thermal storage system means the availability of the electricity can be planned. Therefore, the solar power plants can also generate electricity after sunset.

About Solar Millennium AG
Solar Millennium AG is an innovative technology and service company that is active around the world. Its headquarters are in Erlangen (Germany). Together with its daughter companies, it offers a wide range of services from construction to the operation of large-scale solar-thermal power plants. It specializes in parabolic trough and solar chimney technologies and has reached a leading position worldwide in this energy marketplace of the future. The main focus of current projects is Spain, the USA and China.