Singapore's energy company SP Group announced on Thursday it will partner with Qingdao Daneng Environmental Protection Equipment Co Ltd to invest and build a 90-megawatt aquavoltaic farm.

The project will deploy solar photovoltaic panels across 300 acres of aquafarms in Qingdao city in Shandong province, and is on track to be connected to the grid by the end of the year. Aquafarming is the cultivation of aquatic organisms, including fish, crustaceans and aquatic plants.

It is projected to produce 162 million kilowatt-hours of green electricity annually, while reducing carbon emissions by 160,000 metric tons.

SP Group said combining solar power generation with aquaculture enables land use optimization and unlocks symbiotic benefits such as reducing evaporation rates at the water's surface and ecosystem restoration.

"There is a growing need for green energy solutions as China's industrial sector embarks on a green energy transformation. SP Group welcomes the opportunity to work with local companies to further explore innovative applications of renewable energy, amid China's energy transition," said Michael Zhong, managing director of SP Group's China branch.