(Yicai Global) Sept. 14 -- A wind power affiliate of nuclear energy giant China General Nuclear Power Group will join forces with Baolihua New Energy Stock to develop two large wind power projects in southern China's Guangdong province which were earlier signed to them separately.
CGN Wind Energy signed an agreement of intent with Baolihua to together develop and construct a offshore wind power station of 900 megawatts, which was assigned to solely CGN before, and 500MW, which was Baolihua's, the Guangzhou-based clean energy firm said in a statement yesterday.
The cooperation will help to accelerate the construction of the two projects and become a role model for the contiguous development of offshore wind power projects in Guangdong province, the statement added.
The two parties will set up a joint venture after getting an approval from the government. CGN will hold 80 percent's equity of this firm and Baolihua will keep the remaining 20 percent. The project company will acquire Shenzhen-based CGN's wind power affiliate. The acquisition price will be determined by an asset assessment report issued by a third-party agency which is qualified by the State-owned Assets Supervision and Administration Commission of the State Council.
After meeting conditions to start the construction, the two parties need to increase their investment in the project company according to their shareholding ratio. If Baolihua waives the right to chip in, CGN can ramp up its capital independently, which will also raise its shareholding ratio in the JV.
Editor: Emmi Laine