(Yicai) March 8 -- Shares of Shouhang High-Tech Energy Technology jumped after the major Chinese supplier of power plant air cooling systems won an order worth about CNY429 million (USD60 million) from a unit of a contractor set to build a solar thermal power plant.

Shouhang High-Tech Energy [SHE: 002665] ended up 7.7 percent at CNY2.38 (33 US cents) a share in Shenzhen today, after jumping by as much as its 10 percent daily trading limit in the morning. 

The order from a subsidiary of China Energy Engineering Group is equivalent to about two-thirds of Shouhang High-Tech Energy's revenue in 2022 and will likely positively impact its business this year and next, the Beijing-based firm said late yesterday.

Under the agreement, Shouhang High-Tech Energy will provide key equipment and services for a 100-megawatt power generation and energy storage project, owned by Beijing-listed Tangshan Haitai New Energy Technology, that is about to start construction work, it said.

According to an invitation to tender report published on the website of solar power industry media CSP Focus last December, the project is located in the city of Turpan in China's northwest and Xinjiang Uygur Autonomous Region. It also includes a 900 MW photovoltaic power station.

Shouhang High-Tech Energy develops solar thermal power plants, which use mirrors or lenses to focus sunlight onto a receiver. It has built and runs a 100 MW tower-type solar plant in Dunhuang, one of China's first solar thermal power plant projects. 

Some 12,000 reflectors at the Dunhuang site bounce sunlight onto a 260-meter-high heat-absorbing tower that uses molten salt to convert solar energy into thermal energy, producing a stable and steady electrical output.

Editor: Martin Kadiev