HK firm seeks investors for Australia coal power plant

05 March 2019 - 12:00 am UTC

Hong Kong-based Kaisun Energy Group plans to help build a coal-fired power plant in Australia together with a local property developer and a Chinese state-owned electricity producer.

The energy unit of Kaisun Holdings last week signed a co-development MOU with Carvcorp Australia and Northwest Power Construction Engineering (NWPC) to raise funds for the 2GW project, according to a 28 February stock exchange filing. NWPC is a subsidiary of China Energy Engineering Corporation, the company that built the Asian nation’s Three Gorges Dam.

Cavcorp is leading the consortium, while NWPC will take charge of the EPC and Financing as well as O&M works for the Ultra Supercritical Coal-Fired Power Plant in New South Wales’ Hunter Economic Zone. NWPC will operate and maintain the plant for at least 10 years, a term that could be extended. The consortium members plan to set up a project SPV, according to the stock exchange filing.

“The developers are currently working to obtain an environmental permit and sign a power-purchase agreement,” an NWPC spokesperson told Inframation. “A formal co-development agreement is likely to be signed when the regulatory approvals and the PPA are finalised.”

Kaisun will seek new investors and consider sponsoring any potential listing of the project in Hong Kong, it said in the stock exchange statement. It intends to continue working with NWPC to look for Belt and Road project opportunities in energy and infrastructure. In particular, it will look to invest as well as provide expertise in corporate management, fundraising and possible project exits.

Kaisun Energy is currently undergoing a business revamp that could see the coal miner team up with other Chinese state-owned enterprises to undertake more coal-fired, wind, solar, biomass and transmission projects in modes such as BOT, BOOT and EPC plus Financing.

“Future fundraising activities may be required in view of the large scale of the Belt and Road projects in general,” the company said in the bourse filing.

Kaisun specialises in energy, logistics as well as machinery production in Central Asia, and in China’s Xinjiang and Shandong provinces. In January, it announced the acquisition of a railway platform in Choir, Mongolia, which covers 35,000 square metres with an annual average handling capacity of 1.8 million tonnes.

 

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