(Yicai) Sept. 11 -- Goldwind Science and Technology, a major Chinese wind turbine maker, said it will invest CNY18.9 billion (USD2.7 billion) to build a green chemicals plant with a wind farm in Inner Mongolia Autonomous Region, a region of China that has wind and biomass resources in abundance.

Goldwind has inked a deal with the Bayannur city government to build the green chemical production facility there, the Beijing-based company announced late yesterday. The electricity generated by the wind power plant will mainly be used to produce green hydrogen, methanol, and ammonia, it added.

More than 80 percent of the power from the 3-gigawatt wind farm will go to the project, which will have the capacity to produce 600,000 tons of green methanol and over 400,000 tons of green synthetic ammonia a year, Goldwind said.

The green hydrogen will be used as a raw material for methanol and synthetic ammonia production, with biomass syngas made from local resources also included among the raw materials for methanol production, the firm said.

The project will use the plentiful wind, solar, and biomass resources in Bayannur, leverage Goldwind's resource and technological innovation advantages, and form an integrated solution for wind power and green chemicals, the company noted.

After jumping by as much as 4.3 percent earlier today, Goldwind’s shares [SHE: 002202] closed up 3 percent at CNY12.52 (USD1.76) each. The wider Shenzhen market ended 3.4 percent higher.

The investment is over 12 times Goldwind's net profit in the first six months of this year, but its first-half earnings report showed that the company had CNY9.6 billion (USD1.3 billion) of cash as of the end of June. The project financing will come from its own funds and bank loans, the firm said.

Goldwind's net profit rose 7.3 percent to CNY1.5 billion in the six months ended June 30 from a year ago, while its operating revenue surged 41 percent to CNY28.5 billion.

Editors: Tang Shihua, Martin Kadiev