Sembcorp now a player in China’s wind industry

Singapore-based Sembcorp Industries acquires its first wind farms in China.

The company’s wholly-owned subsidiary, Sembcorp Utilities, signed a sale and purchase agreement with (AES) to acquire part of its power asset portfolio in China for US$85.5 million.

The acquisition includes a 49% stake in four wind power assets and a 25% stake in a coal-fired power plant owned through AES China Corp. The AES Corporation is a global power company listed on the New York Stock Exchange.

The wind power assets comprise three wind power plants in Inner Mongolia and one wind power plant in Hebei with a total gross power capacity of 247.5 megawatts. These wind power plants are currently owned through four 49%-owned Equity Joint Ventures with Chinese partner, Guohua Energy Investment Company.

Guohua is one of the top wind power companies in China and is owned by Shenhua Group Corporation, a listed state-owned enterprise and the largest coal company in China and the largest coal supplier in the world.

“This acquisition strengthens our global energy portfolio and provides a platform to accelerate Sembcorp’s growth in the renewable energy sector,” said Tang Kin Fei, Group President & CEO of Sembcorp.

“As a responsible energy player, Sembcorp aims to have a portfolio of high efficiency thermal and renewable power generation assets including a growing component of low carbon capacity. With this acquisition, our renewable energy capabilities will now include wind in addition to biomass.”

He said the buy-in is set to further extend Sembcorp’s presence in China as an established energy and water player. With the inclusion of Inner Mongolia and Shanxi, Sembcorp will have utilities operations in 11 provinces across China.

Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. It has facilities with 5,600 megawatts of gross power capacity and over seven million cubic metres of water per day in operation and under development.

It is also a world leader in marine and offshore engineering as well as an established brand name in integrated urban development.

In China, Sembcorp has an established presence in water and wastewater treatment operations in 12 cities across nine provinces. The Sembcorp Group has total assets of over S$11 billion and employs over 9,000 employees.