CRP eyes stake in nuclear, other energy tech
Updated: 2009-07-31 07:22
(HK Edition)
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HONG KONG: In a step toward greater energy-production diversification, electricity sales and coal mining giant China Resources Power Holdings plans to take a 25 percent stake in a 25 billion yuan ($3.66 billion) nuclear project in Hunan province, the company's chief financial officer Wang Xiaobin told Reuters yesterday.
CRP, the country's fourth-largest listed power company by market value, said it also aims to invest 10 billion yuan in renewable energy by 2011, she said.
The economic stimulus funds flowing into renewable energy sector on the mainland is luring an increasing number of companies into boosting investment in the sector. Beijing aims to generate up to 15 percent of its total electricity output from clean sources of power, like nuclear, by 2020.
China Resources said it is diversifying into other virtually inexhaustible resource technologies, including solar and waste-to-energy projects, in the medium-term.
"We are planning minority stakes in one or two nuclear projects to gain more experience in this technology," said Wang.
China Resources is building the Hunan project with China National Nuclear Corp, the country's nuclear giant, which will own more than 50 percent of the venture.
The five-year project, which will be constructed in phases, will have a generating capacity of up to 4,000 megawatts. The project awaits government approval.
"We are also in discussion with Guangdong Nuclear (China Guangdong Nuclear Power Corp) for similar projects," she said.
The flagship power unit of state-owned China Resources National Corp is also planning investment in multi-billion yuan coal mine projects in Shanxi and Inner Mongolia, said Wang.
"We are expanding our sourcing of coal mines within Shanxi," she reported.
Wang expects improved profits this year for the mainland's power sector, after many mainland power producers either reported huge drops in earnings or posted losses in 2008 due to steep spikes in coal prices.
The central government raised on-grid power prices twice last year to ease the burden of high coal costs on generators, but several of the power companies said the hikes weren't big enough for them to turn a profit.
Reuters
(HK Edition 07/31/2009 page3)