Sopogy announced on Monday that it has entered into a deal to use its solar thermal technology in a 50 megawatt electric-generation plant in Toledo, Spain.

Honolulu-based Sopogy did not reveal financial terms of the deal with Madrid-based INYPSA Informes y Poyectos, a solar project developer. But the solar startup—which builds concentrated solar power, or solar thermal, systems for commercial and industrial customers—said the agreement is its largest European contract so far announced.

The deal comes as Sopogy looks to expand beyond its initial focus of Hawaii and California and into the European market. Sopogy CEO Darren Kimura said Europe’s feed-in tariffs and other incentives are especially attractive now as solar project financing in the United States has dried up.

Earlier this month, Mr. Kimura told Red Herring that the startup was finalizing a third round of funding for at least $10 million to help propel its expansion overseas.

Sopogy has built a “micro” version of solar thermal systems, a technology which traditionally has been used in massive utility-scale generation plants. Backed by Honolulu venture-capital firm Kolohala Ventures, Sopogy makes metal troughs that use mirrors and lenses to concentrate the sun’s rays to drive electrical turbines. Each trough, or collector, generates 500 watts and can be strung together for larger generation.

Sopogy says by using solar thermal technology the company can build generation plants in the 1 MW to 50 MW range that are cheaper than conventional solar photovoltaic systems. But the company also must compete with biomass, or waste-to-energy, technology in the renewable energy middle market. Biomass has the largest share of that market, and the technology is improving as costs decline.