Sunpower clinches 76.8m yuan waste-heat-to-power project

SUNPOWER Group, which specialises in energy saving and clean power technologies, has secured a tender worth 76.8 million yuan (S$15.2 million) from repeat customer Chongqing Iron & Steel Company.

The mainboard-listed firm will provide comprehensive turnkey services to reform and upgrade waste-heat-to-power facilities for the Chinese steel manufacturer, Sunpower said in a bourse filing on Monday night.

These include design, procurement, construction, installation and integration. Sunpower will also use its proprietary waste-heat recovery technology to recycle waste heat to generate power, improve operational efficiency and reduce emissions.

Delivery of the services will be completed in 2021. Sunpower said the tender is expected to have a positive impact on the group's financial performance for FY2020 and FY2021.

Executive chairman Guo Hongxin said Sunpower's green investments (GI) business has "bounced back" from the temporary headwinds of the coronavirus pandemic after China's economy reopened.

In the first half of this year, the GI segment's profitability improved due to better operational efficiency and further cost control, he added.

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"GI remains our primary value creator and growth driver which delivers high-quality recurring income and cash flows over the long term," Mr Guo said.

Sunpower aims to invest 2.5 billion yuan in GI project equity by 2021. It already has eight operational GI projects, one in trial production, three under construction, and a pipeline of other projects under evaluation.

Shares of Sunpower ended Monday at 58.5 Singapore cents, up 0.5 cent or 0.9 per cent.