Hoku Scientific Inc., a Kapolei-based clean-energy technology company, has landed another large contract with a Chinese-based manufacturer that will give it added funds toward a polysilicon plant it is building in Idaho.

Hoku said it has signed a 10-year contract worth up to $284 million with Tianwei New Energy Wafer Co., a Chengdu, China-based maker of silicon wafers and photovoltaic cells. Hoku will deliver polysilicon to Tianwei starting in early 2010.

The contract is significant for Hoku in several aspects, including the $30 million in prepayments Tianwei will make by Nov. 15. Hoku has been scrambling to replace financing for the Idaho plant after a $110 million financing plan with Merrill Lynch dissolved in May. Hoku needs to come up with $53 million in the fourth quarter for its pilot production project at the plant.

Tianwei's $30 million will go toward that, along with $10 million from Jiangxi Kinko Energy Co. Ltd., which last month agreed to prepayments under a 10-year, $298 million contract with Hoku.

The remaining $13 million Hoku needs will come from a sale of shares. Hoku declined to discuss if it is currently selling stock, but has previously said it would market shares with the help of investment bank UBS around the end of July.

Darryl Nakamoto, Hoku's chief financial officer, said the Tianwei agreement is good news in that it increases the company's liquidity while reducing the number of shares it needs to issue for a share sale. If Hoku had to sell a large amount of stock, that could have diluted value for current shareholders.

Nakamoto said the contract is also significant in that it demonstrates that the industry believes in Hoku and its ability to produce polysilicon, a material used in cells of photovoltaic panels and computer chips.

"It shows more customer confidence," said Nakamoto, noting that the Tianwei announcement came just weeks after Hoku's agreement with Jiangxi, which also is a China-based company.

Hoku said it is now oversubscribed for the 3,500 metric tons per year of planned polysilicon production at the Idaho plant. But the company said it plans to realign its customer allocations over the next several weeks.

Hoku said it has been talking with Sanyo and Global Expertise Wafer as part of contract amendment discussions.

Besides the prepayment from Tianwei, Hoku's agreement with the company calls for another payment of $10 million in January 2009 and $5 million when the first shipment of polysilicon is received.

Hoku's obligation to repay Tianwei $45 million through product shipments will be secured by certain assets.

Hoku, whose shares have fallen 48 percent this year, made its announcement after the close of regular stock market hours. Prior to the close. the shares had risen 14 cents to $5.90.