China Energy Investment Corp (CHN Energy) and its majority-owned subsidiary, China Longyuan Power Group, have officially inked a CNY 3 billion (USD 416 million / EUR 383 million) joint venture deal. The collaboration is geared towards the development of an expansive “new energy” desert project in China, encompassing renewables and energy storage.
The investment agreement outlines the blueprint for the ambitious venture, tentatively named Badain Jaran (Gansu) Desert, which holds the potential for the construction of a substantial 11 GW of new energy capacity. The project's scope extends to include peak load regulation through a combination of thermal power, energy storage, and solar thermal power initiatives, as detailed in a recent statement released by Longyuan.
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The joint venture aims to leverage Longyuan's specialized expertise and technological advancements in the new energy sector, capitalizing on CHN Energy's proficiency in the development, construction, and operation of thermal power projects.
The envisaged business activities of the joint venture are broad-ranging, encompassing power generation, transmission, and supply, along with services related to solar and wind power generation technology. Additionally, the collaboration could delve into energy storage, sales of solar thermal power generation equipment, leasing of PV equipment, and advancements in recycling technologies.
According to the agreement's terms, Longyuan is set to invest RMB 1.53 billion, securing a controlling 51% stake in the joint entity. Meanwhile, CHN Energy will contribute CNY 1.47 billion, securing a 49% shareholding. The formal capital injection is contingent on project progress, with a deadline set no later than December 31, 2033, as specified in the agreement.
It is crucial to note that the project is still pending approval, according to Longyuan's statement, underscoring the preliminary nature of this substantial renewable energy initiative.
