China OKs Sembcorp Industries renewable energy deal

$85.5m purchase of wind and coal power assets pushes through snag-free.

Chinese authorities have greenlighted Sembcorp Industries' acquisition of power assets in China from The AES Corporation through its wholly-owned subsidiary, Sembcorp Utilities.

The sale and purchase agreement with AES involves acquiring part of its power assets in China. These include a 49% stake in four wind power assets in Inner Mongolia and Hebei with a total gross power capacity of 247.5 megawatts, as well as a 25% stake in a co-operative joint venture for 2,100-megawatt coal-fired power plant in Shanxi.

The co-operative joint venture expires in 2016.

“The successful completion of this acquisition is a significant milestone in our strategy to grow our renewable energy capabilities. This acquisition not only strengthens our global energy portfolio but also provides a platform
to accelerate Sembcorp’s growth in the renewable energy sector. In addition, we now have our first wind power assets in China, the largest wind power market in the world," said Tang Kin Fei, Group President & CEO of Sembcorp.

"With this acquisition, Sembcorp’s renewable energy capacity, which now includes wind in addition to biomass, accounts for approximately 5% of the Group’s total energy portfolio. The transaction also further extends Sembcorp’s presence in China as an established energy and  water player. Sembcorp’s energy and water operations in China have now increased from 13 to 18 cities across 11 provinces," said Sembcorp in a release.