China Energy Conservation Investment Corp (CECIC) plans to list its wind power unit in Hong Kong next year, and on the mainland afterwards, a senior executive told Reuters on November 4 China's Social Security Fund, Everbright Ltd, and China Development Bank have become strategic investors, which take a 40 percent stake in total, Li Longsheng, vice president of CECIC, said on the sidelines of a conference.
"We will list the wind power unit first," said Li, "(We) will list H-shares in Hong Kong, then return to A-share. It will be really fast," said Li, who declined to comment on the size of the IPO. The company's capital is expected to be 1.6 billion yuan after raising money from strategic investors, Li added.
CECIC, controlled by the central government, is already operating wind power generators with a total install capacity of 300 megawatts (MW), according to its website (www.cecic.com.cn).
Li said the company also plans to list its renewable energy unit in the future. "Urban waste management, water treatment, power generation from sludge, and biomass power generation in rural areas...we have pilot projects in these areas," said Li.
The renewable energy unit expects to achieve installed capacity of 120,000 kilowatts in its five biomass power generation projects by 2010. By 2015, it expects to build another 50 projects with a total installed capacity of 1,320
MW, the company's website said. CECIC's revenue in 2008 was less than 20 billion yuan, but the company aims at expanding the revenue to 100 billion yuan by 2012, he said.
CECIC also operates China's biggest on-grid solar power project with installed capacity of 10 MG in the northern region of Ningxia, which is only the first phase of a total 50-MW project.
China's renewable energy sector has grown remarkably in recent years, as Beijing pushes for sustainable development, but overcapacity is already threatening polysilicon and wind power equipment industries as a result of blind expansion.
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