Alliant acquires three CHP power plants in China

Alliant Energy International, a wholly owned subsidiary of Alliant Energy Resources, Inc. — the non-utility division of Alliant Energy Corporation — announced Friday the acquisition of three combined heat and power (CHP) facilities in the People’s Republic of China.

The acquisitions were made via the establishment of joint ventures by Peak Pacific Investment Company, Ltd. Peak Pacific is a development company majority-owned by Alliant Energy that focuses on developing CHPs and electric generating facilities for large industrial customers in China. Local Chinese partners are involved in each of the joint ventures.

In addition, a financing agreement signed on August 23 between the International Finance Corporation (IFC), the private financing arm of the World Bank, and Peak Pacific suggests additional acquisitions and development of generating facilities in China are likely. IFC will provide a $25m ten-year loan to Peak Pacific to help fund the company’s investments in China. This is IFC’s first investment in the Chinese power sector.

The acquisitions bring the number of Alliant Energy International projects in China to nine. The company’s investment in China after these transactions will total $150m generation capacity increasing to more than 500 MW. The company first invested in China in 1996.

“We remain focused and on track in our efforts to prudently increase our investments in China,” says Joel Schmidt, Alliant Energy International’s managing director for China. “These plants provide immediate earnings and cash flow as well as expanding our fleet of operating plants and strategically positioning us in China.”

The three acquired facilities are coal-fired and have a total generation capacity of 225 MW. The newly acquired facilities in China are: Weifang Ocean Peak Heat and Power Co., Ltd. – a 75 MW CHP (final 25 MW under construction) in Shandong Province; Zouping Peak CHP Co., Ltd. – a newly constructed 50 MW CHP in Shandong Province; and Luannan Heat and Power Company – a newly constructed 100 MW CHP in Luannan County, Hebei Province.

Alliant expects China to be the largest growth market for electric power generation in the next ten years. “An increasing demand for energy and ready access to financing are creating an idea business environment for us,” says Bob Anderson, chief executive officer and founder of Peak Pacific. “Our generating capacity in China has doubled in the last three months with these most recent acquisitions and we anticipate continuing our growth.”

The Chinese government is encouraging foreign and private investment to help meet its expanding needs for energy infrastructure. “Opportunities are presenting themselves and Alliant Energy has the resources and industry expertise to make things happen,” says Schmidt. “We’re taking advantage of China’s growth potential and at the same time helping provide the country with an efficient and environmentally friendly energy supply. It benefits everyone involved.”

CHP plants generate both power and steam from the same operation to improve overall fuel efficiency. The Chinese government encourages CHP facilities for their environmental and efficiency benefits.

No posts to display