China Shenhua Energy to acquire plants from parent
China Shenhua Energy, the listed unit of the nation's largest coal producer Shenhua Group Corp, plans to acquire from its parent company 3,500 megawatts of "near-zero emission" coal-fired power plants as part of a five-year asset acquisition programme.
China Shenhua Energy, the listed unit of the nation's largest coal producer Shenhua Group Corp, plans to acquire from its parent company 3,500 megawatts of "near-zero emission" coal-fired power plants as part of a five-year asset acquisition programme.
The plan, to be funded by a share sale on the mainland, would not result in lower profitability of its power generation business, vice-chairman Ling Wen said.
"To meet stricter emission regulations, we must invest in upgrading our plants, but this does not mean our profitability will be hit in a major way," Ling said. "On the contrary, our power plants will get priority when selling their output to state-owned power grid operators."
Senior vice-president Wang Xiaolin said each of the near-zero emission coal-fired plants' upgrade cost would run into tens of millions of yuan, depending on their size and technology used.
Our plants will get priority when selling … to state-owned grid operators
"Near-zero" indicates an emission level lower than that of power plants fired by natural gas.
