China Power Investment, Shenergy to Build IGCC Project in Shanghai

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Researched by Industrial Info Resources (Sugar Land, Texas)--China Power Investment Corporation (CPIC) (Beijing), one of the top five power producers in China, signed a strategic cooperation framework agreement and a joint venture agreement for an Integrated Gasification Combined Cycle (IGCC) Power Project with Shenergy Group (Shanghai), a leading energy provider in Shanghai and the holding company of Shenergy Company Limited (SH:600642) (Shanghai), in Shanghai on August 5. Yang Xiong, deputy mayor of Shanghai; Lu Qizhou, president of CPIC; Yang Xianghai, chairman of Shenergy; and other leaders and representatives attended the signing ceremony. Su Li, vice president of CPIC, and Wu Jiangxiong, general manager of Shenergy, signed the agreement.

According to the agreement, CPIC and Shenergy will establish a full-round, strategic-cooperation partnership to ensure sustainable development and a safe supply of energy in Shanghai. Based on Shanghai's new energy industry development strategy, as well as China's, CPIC and Shenergy will promote the construction of Shanghai Caojing IGCC Demonstrative Project and build it into a quality project with advanced technology, strong demonstrative effect, high localization level, and reasonably priced electricity both in China and abroad.

As reported, the proposed IGCC project is located in the Shanghai Chemical Industry Park. Construction of the project is mainly comprised of two or three gasification furnaces, each of 3,000 tons per day; two sets of F-class, gas-steam, combined-cycle power generating units of 400 megawatts each; as well as the associated support facilities, such as a port.

In addition to the IGCC project, both parties will conduct strategic cooperation in the construction of power projects outside Shanghai; development of new energy such as nuclear power; and the development of upstream resources.

After the signing ceremony, CPIC and Shenergy jointly unveiled the preparation office for the project.

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