German polysilicon producer Wacker Chemie AG (ETR:WCH) said today it will be supplying silicone fluid to Chinese solar thermal plant components maker Royal Tech CSP Ltd.

The Chinese firm will use Wacker’s newly developed HELISOL silicone fluid as a heat-transfer medium in its concentrated solar power (CSP) plants.

German chemical company Wacker Chemie AG (WKCMY.PK, WKCMF.PK) announced Thursday that it has signed an agreement with Royal Tech CSP Limited of China, a specialist for highly efficient solar thermal systems that are based on CSP technologies.

Under the deal terms, Wacker will supply its newly developed HELISOL silicone fluid to Royal Tech, its exclusive partner in China. Royal Tech uses the silicone fluid as a heat-transfer medium in its solar power plants.

The company noted that HELISOL can withstand thermal stress of up to 425 C for a long period of time and its viscosity remains low even at -40 C. In combination with Royal Tech’s parabolic trough collectors, the fluid enables efficiency levels that are not possible with conventional heat-transfer fluids.

At present, Royal Tech is building a 50-megawatt solar power plant in the city of Yumen in western China.

“Our partnership with Royal Tech will contribute to significantly enhancing the efficiency of solar power plants and, in turn, bolster the market position of our two companies in the highly promising market for high-performance CSP systems,» said Auguste Willems, member of Wacker’s executive board.

Royal Tech is currently building a 50-MW CSP plant in the city of Yumen, Gansu, and has a 100-MW project in Inner Mongolia.