China Energy Investment Corp (CHN Energy) and its majority-owned subsidiary, China Longyuan Power Group (HKG:0916), have entered into an agreement to establish a CNY-3-billion (USD 416 million/EUR 383 million) joint venture aimed at constructing a new multi-gigawatt-scale “new energy” desert base in China, encompassing renewables and energy storage.
The investment agreement, recently finalized, outlines the framework for the Badain Jaran (Gansu) Desert Base project, which could potentially boast an 11 GW capacity for new energy. The project’s scope includes peak load regulation through thermal power, energy storage, and solar thermal power initiatives, as revealed in a statement released by Longyuan.
The collaboration is expected to leverage Longyuan’s expertise and technological advancements in the new energy sector while capitalizing on CHN Energy’s proficiency in developing, constructing, and operating thermal power projects.
The joint venture anticipates engaging in a wide range of activities, including power generation, transmission, and supply, solar and wind power generation technology services, energy storage, sales of solar thermal power generation equipment, leasing of PV equipment, and recycling technologies.
According to the terms of the agreement, Longyuan will inject RMB 1.53 billion into the joint entity, securing a controlling 51% stake, while CHN Energy will contribute CNY 1.47 billion, holding a 49% share. The formal capital injection is contingent on project progress, with a deadline set no later than December 31, 2033.
It’s important to note that the project is currently pending approval, as stated by Longyuan in the released statement.