(Yicai Global) June 30 -- A local government in China’s northwest Gansu province has announced the termination of a CNY35 billion (USD4.8 billion) photovoltaic hydrogen production project by a fake state-owned enterprise, a local news website reported.

The Suzhou district government in Jiuquan and the Zhongguangtong Technology Jiuquan only signed an intentional investment cooperation framework deal and completed the project filing procedures on June 13, the report said yesterday.

But without conducting a feasibility study or communicating with local regulators, the firm issued a general contract bidding announcement. On June 26, the government notified it to pull the tender and has withdrawn the project.

Zhongguangtong Jiuquan issued a bidding announcement on the China Tendering and Bidding Public Service Platform on June 21, saying that it intended to spend CNY35 billion building a 4-gigawatt off-grid solar power project on 16,500 acres from October 2023 to December 2026 and buy 8,638 sets of hydrogen production equipment.

The project had been approved by the local development and reform bureau, the company added.

State Power Investment Corporation, a state electricity giant, has some shares in Zhongguangtong, according to corporate data provider Tianyancha. Analysts believe that this effort by SPIC in photovoltaic hydrogen production confirms that the industry has bright prospects. Coupled with a huge amount of investment, it will accelerate the process of the hydrogen production industry. The information drew widespread market interest.

But SPIC said yesterday that Zhongguangtong Jiuquan is not its subsidiary and it has nothing to do with the project. The State-owned Assets Supervision and Administration Commission last year identified six businesses with ‘Zhongguangtong’ in their names as fake SOEs.

According to Securities Times, the parent company of Zhongguangtong Jiuquan, Zhongguangtong New Energy Group, is registered at 100-square-meter office building in Shenzhen’s Luohu district. The office has been used to register 16 companies so far, most of whose names begin with ‘Zhongguangtong.’

Editor: Peter Thomas