Hoku Scientific Inc., the Kapolei-based clean energy technology company, won a 10-year, $298 million contract with a China-based firm. It will provide needed funds for a polysilicon plant Hoku is building in Idaho.

Hoku said that with the contract with Jiangxi Kinko Energy Co. Ltd., it now has pre-sold its annual production of 3,500 metric tons of polysilicon.

Hoku has been looking to complete its financing for its $390 million plant under construction outside Pocatello, Idaho. Hoku is building the facility to take advantage of the growing market for polysilicon, used in cells for photovoltaic panels.

Hoku said it had signed a definitive contract for the sale and delivery of solar-grade polysilicon over a 10-year period starting in late 2009. The contract calls for an initial deposit of $10 million to Hoku, with an additional prepayment for product of $20 million by Dec. 20.

Another $25 million payment is to be made by March 31, 2009. Hoku is granting to Kinko Energy a security interest in its polysilicon assets to secure Hoku's obligation to repay $55 million to Shanghai-based Kinko as a credit against product shipments.

"We are pleased to have established a relationship with Kinko Energy, an emerging player in the global silicon ingot and wafer industries," said Dustin Shindo, Hoku's chief executive officer.