The company signed the contract with Greek firm, Solar Technologies, which will build the production plant in Ioannina, northern Greece. It will manufacture over 5,000 square metres of Dyesol’s solar cells for the European market.

Dyesol’s technology produces electricity by mimicking photosynthesis found in nature. The company claims its “third-generation” technology is more advanced than earlier silicon-based photovoltaic cells, because it can produce electricity in low-light conditions.

Managing director Sylvia Tulloch said the agreement was a major step forward for Dyesol and coincided with global pressure to address climate change.

“Solar Technologies’ manufacturing facility will be a world first for dye solar cells and signals a strong vote of confidence in the future of this exciting technology,” Tulloch said.

“People are increasingly looking for clean energy sources and dye solar cells are set to play a key role in future electricity supplies.”

In cooperation with its representative in Europe, Greatcell Solar S.A., Dyesol will provide a complete design and operating package. The Queanbeyan-based company will design the plant, provide equipment and materials, including the dyes used to make the solar panels, and an operating system.

The first phase of the contract, covering construction of the facility, extends for nearly two years, and is expected to be followed by significant, on-going contracts for the supply of Dyesol materials when production starts, the company said.

Across the Atlantic, Dyesol has completed a feasibility study to establish a similar manufacturing facility in Canada, it said.

In addition, the company has lodged two patents in overseas markets to protect its intellectual property.