(Yicai Global) June 12 -- Chinese gas and coal supplier Guanghui Energy plans to build a USD223 million solar power plant in Texas to either use or resell.

The Xinjiang Autonomous Region-based firm will be able to generate 200 megawatts of power at the facility, it said in a statement yesterday. Guanghui subsidiary GH America Energy, which typically trades liquefied natural gas internationally, will run the plant and leverage local resources in the Blue Valley, where the facility will be located.

The company expects to be able to generate steady cash flow with the power plant or sell it for an 8 percent return on the total investment, it said.

Shares in Guanghui Energy [SHA:600256] were down 0.38 percent at CNY2.61 (37 US cents) when the markets closed for lunch.

Guanghui Energy’s controlling shareholder Guanghui Group will lend the energy firm up to USD100 million for the project, at a tentative interest rate of 4 percent, the statement added.

Editor: James Boynton