Sunpower bags third centralised steam BOT project worth RMB54m

It will build a 40 tonnes/hour-capacity boiler.

Sunpower has inked a concession agreement through its subsidiary Quanjiao Sunpower Clean Energy with the management committee of the Anhui Quanjiao Economic Development Zone (Zone) to establish a centralised steam build-operate-transfer (BOT) project.

According to the company’s media release, the project will be carried out in phases, the first of which is estimated to be worth about RMB54m. As the group’s third centralised steam BOT project, it will be funded by proceeds from the company’s December 2015 share placement, bank loans, as well as internal resources.

Sunpower further reports that the first phase will involve the construction of one coal-fired boiler with a 40 tonnes/hour capacity, as well as distribution pipeline to supply steam to companies operating within the Zone.

The project as a whole was locked down for a concession period of up to 30 years, and is expected to be finished in 3Q16. Once operational, the project is expected to contribute to smog governance as the Zone will close almost 20 heavy pollution-prone small coal-fired boilers. Sunpower says it anticipates the project to contribute to Sunpower’s EPC revenue and bring in a new stream of recurring income.

“Going forward, we hope to strengthen our presence in the growing central heating and clean energy industry via the BOO and BOT business models. This will further expand our recurring income stream and enhance our market competitiveness in the long run,” commented Sunpower chairman Guo Hongxin.