Hyundai Engineering & Construction Co., South Korea’s No. 2 builder, said Tuesday it has signed a pact with global energy contractor Abeinsa to cooperate in solar power generation.

The memorandum of understanding is expected to help the South Korean company make inroads into integrated solar combined cycle sectors in places like South America and Africa.

Abeinsa is the construction arm of Spain’s Abengoa S.A. and has extensive experience in concentrated solar power generation. CSP efficiently creates heat and pressure from the sun’s rays, which is then used to make electric power. If used in conjunction with heat storage facilities, the sun energy can be turned into electric power even at night.

“Abeinsa is consistently rated as one of the top two builders in the power generation field, with Hyundai E&C to benefit from the tie-up,” an official at the South Korean company said.

The pact was signed by Hyundai E&C’s president Jung Soo-hyun and Abeinsa CEO Manuel Valverde in Seoul. (Yonhap)