Sembcorp’s JV with Beijing Energy to buy 3 solar projects in China

UTILITIES giant Sembcorp Industries on Friday (Nov 11) said it is acquiring three solar projects in northern China through a joint venture (JV) with Beijing Energy International Investment.

Beijing Energy Sembcorp (Hainan) International Renewables, which is 49 per cent owned by Sembcorp, entered into share purchase agreements with BEI Energy Development (Beijing) to acquire the entire equity interest in the projects, Sembcorp said in an exchange filing.

The initial equity consideration is about 15 million yuan (S$3 million), with future capital injection of up to 1,148 million yuan, the mainboard-listed company said. The acquisition is expected to complete in the first quarter of 2023, subject to regulatory approvals, and will be accretive to earnings upon completion.

The company said the investment will be funded through a mix of internal cash resources and external borrowings.

The solar assets, which have a total capacity of 795 megawatts, are in the south of Hebei province, one of China’s main energy demand centres, Sembcorp said. The assets are contracted to the state-owned State Grid Corporation of China.

The acquisition is expected to bring Sembcorp’s global renewables portfolio to 7.9 gigawatts (GW), which the company said is close to its 2025 target of 10 GW of gross installed renewables capacity.

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China is one of Sembcorp’s key markets driving its brown-to-green transformation, the company said.

Sembcorp shares rose S$0.02 or 0.7 per cent to close at S$3.04 on Friday.