TBEA to Invest in Multiple Photovoltaic Projects in Baotou

PVTIME - On February 8, TBEA announced that its holding subsidiary Xinte Energy Co., Ltd. (hereinafter referred to as "Xinte Energy") has signed an "Investment Framework Agreement" with the Baotou City Government and the Tumd Right Banner Government for the development of a 200,000 tonne high-purity polysilicon production project, a 200,000 tonne industrial silicon supporting project, and new energy power stations in Inner Mongolia.

Phase I will bring online 100,000 tonnes of high-purity polysilicon production capacity and 5GW in new energy power stations. Phase II will bring online the remaining 100,000 tonnes of high-purity polysilicon production capacity, the 200,000 tonne industrial silicon supporting project, and another 5GW in new energy power stations.

According to the announcement, the investment total for phase I is 8 billion yuan. After obtaining the land and completing the relevant construction approvals, construction will officially begin within one month of meeting the conditions. Phase I is expected to be operational within 18-24 months after the start of construction. Phase II of the high-purity polysilicon project as well as the industrial silicon supporting projects will advance according to the market conditions and pending approvals. The 10GW in new energy power stations will be constructed in phases according to Baotou's "14th Five-Year Plan" new energy development and construction plan.

In terms of policies, the People’s Government of Baotou City and the People’s Government of Tumd Right Banner will treat Xinte Energy in accordance with its western development tax policy, assist the project companies in their application and approval of high-tech enterprise qualifications, and provide other policy support.

Xinte Energy is mainly involved in the production and sales of polysilicon and providing engineering and construction contracting services for photovoltaic and wind power projects. It was listed on the main board of the Hong Kong Stock Exchange on December 30, 2015. Currently, TBEA is still planning the domestic listing of Xinte Energy.

In the past six months, Xinte Energy has signed long-term silicon supply contracts with subsidiaries of JA Solar, LONGi, and Wuxi Shangji Automation for 5.354 billion yuan (excluding taxes), 9.137 billion yuan (including taxes) and 19.235 billion yuan (excluding taxes), respectively.

 

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