(Yicai Global) Aug. 8 -- Chinese electricity firm Guangdong Shaoneng Group Co. [SHE:000601] will spend CNY3 billion (USD447 million) to expand one of its biomass power plants and develop ecological plant-fiber products in the southern city of Shaoguan as it looks to expand its biomass energy business, it said in a statement yesterday.
The firm signed an investment agreement with Xinfeng country government in Shaoguan, the statement read. Under the deal, it will invest CNY1 billion to expand the Xinfeng biomass power plant and raise its installed capacity to 120 megawatts, and pump CNY2 billion into a project for new ecological plant-fiber products.
The company currently has two biomass power plants with a combined capacity of 120 megawatts, including the 60-megawatt plant in Xinfeng, the statement said. The Xinfeng plant went into operation on March 22, 2017.
Guangdong Lvzhou Ecological Technology Co., a Shaoneng subsidiary that makes plant-fiber products and annually produces 15,000 tons of eco-friendly paper tableware, will invest in a new plant-fiber product and build 64 production lines in phases, given that its products are in short supply, the statement added.
The two projects will help the firm optimize its structure by becoming less dependent on hydropower and improving profitability, the company said.