Singapore-based Sembcorp Industries has completed its $85.5m acquisition of power assets in China from American firm AES Corporation, following approval by relevant authorities.
The acquisition comprises a 49% stake in four wind power assets with total capacity of 247.5MW in Hebei and Inner Mongolia, and a 25% stake in a 2,100MW coal-fired power plant in Shanxi.
The co-operative joint venture for the Shanxi coal-fired plant will expire in 2016.
Tang Kin Fei, Sembcorp president and chief executive, said the acquisition marks a significant milestone in the firm's strategy to grow its renewable energy capabilities.
"This acquisition not only strengthens our global energy portfolio but also provides a platform to accelerate Sembcorp's growth in the renewable energy sector," Fei said.
"In addition, we now have our first wind power assets in China, the largest wind power market in the world."
The energy solutions provider had announced in May 2012 that its subsidiary, Sembcorp Utilities, signed a sale and purchase agreement with AES to buy power assets in China.
Image: The acquisition includes four wind power assets in Hebei and Inner Mongolia. Photo: courtesy of Tomasz Sienicki.