The companies have signed a letter of intent regarding the possible installation of up to 88 PWR BLOKs - engines that harness energy from flare and industrial residual gas combustion - corresponding to 35 MegaWatt in power generation.
The next stage is the parties entering into negotiations, as the letter of intent does not place any obligation on either party to fulfil the project, the statement noted.
In July, South African chrome producer Samancor Chrome revealed plans to trial the PWR BLOK energy conversion system developed by Gothenburg-based environmental technology firm Swedish Stirling.
That MOU covered the potential installation of up to 45 PWR BLOKs corresponding to 18 MW at each of Samancor Chrome's Mooinooi, Emalahleni and Burgersfort smelters.
Each PWR BLOK 400-F contains 14 Stirling engines and delivers a net output of 400 kW. The container is placed next to facilities where the combustion of residual gases occurs and converts the energy in the gas to electricity.
Swedish Stirling has said a customer's payback period for the PWR BLOK 400-F is about three years.