Three Gorges in $269 mln backing of HK firm's renewables bid

China Three Gorges, operator of the nation’s biggest dam, agreed to pay HKD2.1 billion (USD269 million) for a 29.1 percent stake in renewable energy producer China Power New Energy Development Co, according to  Bloomberg.

China Power New Energy will issue 3.2 billion new shares at HK$0.65 each to China Three Gorges, the Hong Kong-listed company said in a statement to the city’s stock exchange yesterday. China Power New Energy said it will use the proceeds to fund power generation projects.

China is pushing its companies to increase power generation from alternative sources including wind and hydro as it seeks to cut reliance on coal and oil to reduce pollution. China Three Gorges, which operates the world’s largest hydro power dam, will become the biggest shareholder in China Power New Energy.

The purchase will create “opportunities for the company’s further expansion through leveraging the hydro power capabilities and expertise” of China Three Gorges, China Power New Energy said in the statement.

The sale will leave state-owned China Power Investment as China Power New Energy’s second-biggest holder with a 25.6 percent stake. China National Offshore Oil, the nation’s largest offshore oil producer, will have 8.1 percent.