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Sembcorp Industries expands renewable energy business in China
SEMBCORP Industries is expanding its renewable energy business in China through the development of a 150-megawatt (MW) wind farm in Huanghua, Hebei province, the group announced on Wednesday.
The 1.3 billion yuan (S$300 million) wind farm in Laoshibeihe has received approval from the Hebei Development and Reform Commission and will commence construction this year. It is expected to be completed by 2017 and will be funded through a mix of internal and external borrowings.
Sembcorp Industries' share of the equity investment, through its 49 per cent-owned joint venture with Guohua Energy Investment Co, will amount to around 0.2 billion yuan.
Meanwhile, the group also announced that its 48MW wind farm in Jiedijianhe has begun supplying power to the Hebei South grid.
The two projects are not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financing year ending Dec 31, 2015.
Before news of the announcement on Wednesday, Sembcorp Industries closed trading up 1.72 per cent at S$4.72.