China 250 MW biomass venture aims to raise up to $100 million

April 04, 2011
Biomass power plant

Shenzhen-based Hanyuan Green Energy Resource Co Ltd, a biomass power venture, aims to raise up to USD100 million through private placement for a series of renewable energy power plants that could yield about 1.5 million UN-backed carbon offsets a year.

The 250 megawatt venture it due to be listed on London's Alternative Investment Market within the next few months, a spokesperson for financial services firm GA Group, the project's lead manager, told Point Carbon News on Tuesday.

The venture will utilize waste agriculture biomass in China's Shandong Province to produce electricity from five newly-constructed 50 megawatt power stations. The fuel - including wheat straw, corn stalks, cotton stalks, peanut stalks and soy bean stems - will purchased from local farmers, contributing to the local economy and removing the otherwise discarded material from the waste chain

"The biomass energy venture is a scalable project designed to utilize waste agriculture biomass to produce electricity from five newly constructed 50 megawatt power stations," GA Group said in a press statement. The venture is seeking to raise USD30-100 million in funding, primarily from private European investors.

While GA Group will raise funds, New Zealand-based Environmental Intermediaries and Trading Group (EITG) will manage the associated carbon credit business surrounding the venture with the subsequent value integrated into the deal.

EITG has initiated registration of the project under the Clean Development Mechanism of the United Nations Kyoto Protocol, with the aim of selling the resulting Certified Emissions Reductions to its European clients.