(Yicai) March 19 -- Chinese environmental protection services provider Yonker Environmental Protection has signed a CNY270 million (USD37.5 million) deal to build and operate distributed photovoltaic energy facilities in a steel mill in Indonesia.

Yonker's unit Dezhiqing New Energy Indonesia will install PV power generation facilities with an expected installed capacity of about 65.9 megawatts at the steel mill known as Dexin Steel Indonesia, the Changsha-based parent company announced late yesterday. Once the construction is completed, Dezhiqing New Energy will operate the facility for 15 years, Yonker added.

The solar power facility is expected to generate an average of 97.5 million kilowatt-hours of electricity per year for 15 years, Yonker said, noting that Dexin Steel Indonesia will prioritize the use of energy generated by the PV facility installed by Dezhiqing New Energy.

Based on the power price settlement terms agreed by Dezhiqing New Energy and Dexin Steel Indonesia, the electricity consumption can bring Yonker's subsidiary an annual operating revenue of between CNY43.9 million and CNY48.8 million (USD6.1 million and USD6.8 million) and help the steel mill cut about 100,000 tons of carbon dioxide emissions each year.

Dexin Steel Indonesia has an annual steel capacity of seven million tons in the first phase, which began operations last September. It is Southeast Asia's largest joint venture steel mill, built and invested by China’s Delong Steel Group in the Indonesia Morowali Industrial Park in Indonesia's Sulawesi island.

The deal is expected to positively impact Yonker's operating performance in future years, the firm pointed out, adding that it will take the project as a starting point to steadily expand in overseas new energy service markets.

Yonker [SHE: 300187] was trading down 4.3 percent at CNY5.32 (73 US cents) as of lunch break in Shenzhen today. The stock has rebounded 45 percent since hitting its lowest-ever closing price early last month.

Editor: Futura Costaglione