|LG International invests in Gan Susheng ‘Coal-Fired Cogeneration Plant’|
|Date : 2015-08-13 | View : 51,637|
LG International invests in Gan Susheng ‘Coal-Fired Cogeneration Plant’
LG International has decided to invest in a coal-fired cogeneration plant in China. The company announced on August 13 that it invested RMB 339 million (KRW 62.5 billion) for a 30% stake in the coal-fired cogeneration plant to be constructed in the vicinity of Wuwei, Gan Susheng.
Under the joint venture between LGI and Gansu Province Electric Power Investment Group Corporation (GEPIC), a major Gan Susheng investor, the Wuwei coal-fired cogeneration plant will be constructed with a capacity of 700MW at a cost of RMB 3.25 billion (KRW 599.6 billion).
Construction of the first cogeneration plant in Wuwei will be completed and begin operating in the second half of 2017. This power plant will use coal as fuel to generate electricity and heating energy, to supply to the region.
This investment by LGI in the Wuwei coal-fired cogeneration plant comes just five months after LGI and GEPIC signed an MOU in March. Both companies had formed a strategic alliance to pursue power generation and logistical infrastructure projects.
GEPIC, a policy-oriented large state investment company established with100% investment by the province government, primarily pursues coal-fired power plant, hydroelectric, and wind power generation businesses, as well as the development of coal, railroad, logistics and real estate.
This investment is profoundly meaningful because we have entered northwestern China, which offers big development potential in association with China’s One Belt One Road policy, and because we have laid grounds for the expansion of our overseas power generation business. Notably, in the long term, we are reviewing the supply of coal as fuel, so we expect to create big synergies between power generation and resource development businesses.
Starting from developing coal mines in Nei Mongol Autonomous Region in 2008, we were first South Korean company to buy coal chemical urea plants from China.
[Reference] Gan Susheng
Gan Susheng, bordering China’s inlands including Shanxisheng, Qinghaisheng, Xinjiang Uyghur Autonomous Region, and the Inner Mongolia Autonomous Region, is located in the middle and upper streams of the Yellow River. According to the Xi Jinping government’s plan for constructing the One Belt One Road (the overland and marine Silk Road) project, Gan Susheng is receiving considerable attention as it is emerging as the key part in the economic development area along the overland Silk Road that connects Central Asia and Europe. The province, diversifying its industrial structures focused on light and heavy industries, is expected to offer high growth potential in northwestern China’s development.
[Reference] One Belt One Road (the overland and marine Silk Road) strategy
One Belt symbolizes the economic development area along the overland Silk Road that connects China and Central Asia and Europe. One Road, on the other hand, is based on the marine cooperation with ASEAN nations, the 21st century marine Silk Road that connects Southeast Asia, Southwestern Asia, Europe and Africa. The One Belt One Road strategy combines these two vital aspects of regional economic development, which the Xi Jinping government has defined as a key task in China’s 13rd five-year economic development plan (13•5 Plan). China thus expects to invigorate its domestic economy, bolster foreign economic collaboration, secure resources, and maintain its massive economy profile.
▲ Map of Gan Susheng Wuwei’s coal-fired cogeneration plant in China
▲ Bird’s-eye view of Gan Susheng Wuwei’s coal-fired cogeneration plant in China