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Sydney-based firm Solar Sailor has signed a deal with shipping giant China Ocean Shipping (Group) Company (COSCO) to fit energy-generating sails to two of its commercial ships, according to local media reports.

The green technology specialist will fit 30-metre long aluminium sails covered with photovalitic panels, which the company says will harness wind power to reduce fuel costs by up to 40 percent, and capture the sun's energy to meet approximately five per cent of the ship's energy requirements.

Solar Sailor claims its 'hybrid marine power' (HMP) and 'solar wing' technology is suitable for a wide range of applications from small-unmanned vessels to large tankers, including ferries, tourist cruisers and private yachts. It has won numerous awards for design and innovation including the 2001 Australian Design Award of the Year.

The sails, which can be retro-fitted to existing tankers, are remotely controlled by linking a computer to a ship's existing navigation system. Sensors automatically adjust the angle of the sails to catch a breeze and help vessels along with the use of wind power.

Commenting on the technology, Ian Macdonald, New South Wales Minister for State Development, said the new solar wing technology could significantly reduce a ship's bunker costs and emissions.

"This is a breakthrough opportunity for Solar Sailor to play a leading role in the future of international shipping design during a period when rising fuel costs and environmental concerns have taken centre stage," said Macdonald.

Speaking about his vision of the future on the company's website, Dr Robert Dane, the company's chief executive, said "in fifty years time people will look back at boats of the 20th Century and they'll say "where are the wings"?"

Solar Sailor owns patented ‘solarsail’ technology, which covers single devices that are able to harvest wind and solar energy on any vehicle.

The company says it already has contracts for design and supply to ferry operators in USA, Asia and UAE. The company’s subsidiary UOV LLC in Virginia, USA, has also signed a contract with the US Navy for the development of unmanned ocean vehicles over the next 18 months.