(Yicai Global) Sept. 14 -- Beijing Shouhang Resources Saving Co. [SHE:002665], which makes air cooling systems for power plants, will partner with CNNC Liaoning Nuclear Power Co. to invest CNY15 billion (USD2.3 billion) in a 500-megawatt solar-thermal power station in northern China.
The pair has already signed a cooperation framework agreement, Beijing Shouhang said on Sept. 13.
The two firms will set up a joint venture in which CNNC Liaoning will act as the controlling shareholder, but the investment proportions are still to be decided, the statement said. With CNNC Liaoning as the controlling holder and the consolidation of financial statements, the new company will be able to bring in third-party investors.
Areas with rich solar and thermal resources, such as Inner Mongolia, Zhangjiakou, Liaoning, Jilin and Heilongjiang are all potential sites for the plant. The joint venture will finance the development of the plant, though the financing method has not been finalized yet.
Both companies agreed that Beijing Shouhang will provide technology integration services and key equipment to ensure the station will meet the National Energy Administration's requirements on revenue for demonstration solar-thermal projects.
CNNC Liaoning is a joint venture in which China National Nuclear Corp. holds a 50-percent stake. The firm is responsible for building, testing, operating and managing the Xudabao Nuclear Power Plant which is currently under construction in Liaoning province.