China Datang Corp, the parent of the country's second-largest independent power producer listed in Hong Kong, is in talks to invest 3.52 billion yuan in an energy-efficient power project in Chifeng, Inner Mongolia.
Datang and A-share electricity generator Chifeng Dadi Basic Industry plan to set up a 51-49 joint venture that will generate electricity and recycle hot water from power generation to produce heat for residents in the city, according to a Chifeng Dadi statement to the Shenzhen Stock Exchange yesterday.
The planned investment adds to a growing number of green energy projects in the mainland as the country seeks to rein in pollution and develop sustainable energy sources.
Inner Mongolia, the region with the country's most proven coal reserves, is also trying to make more efficient use of the fuel while meeting pollution emission targets by closing down smaller coal-fired generation units.
The project will access massive coal reserves in the southeast of the autonomous region, whose proven 310 billion tonnes of coal resources surpass Shanxi province as the country's No1 coal-rich region.
The joint venture will have an initial registered capital of 100 million yuan, in which Datang and Chifeng Dadi will contribute in accordance with their proportion of shareholdings. The pair will invest further capital as the project develops.