CPIC and Pingdingshan Coal to Build Large Thermal Plant to Replace Smaller Units in Henan

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Researched by Industrial Info Resources (Sugar Land, Texas)--Construction has begun in central China's Henan Province on Phase I of the Pingdingshan No. 2 power plant, the first 1,000-megawatt (MW) thermal power project approved to replace smaller units. The $1.07 billion project includes two 1,000 MW ultra-supercritical coal-fired units in Phase I. It will be jointly built and invested by China Power Investment Corporation (CPIC) (Beijing), one of China's top five power producers, and Pingdingshan Coal Mining Group (Pingdingshan), a leading coal producer in China.

The project will consume about 4.4 million metric tons of coal every year after completion. All of the project's required coal will be supplied by CPI Pingdingshan Coal Mining Group, according to the agreement signed between the two parties.

Because the cost for coal is rising, thermal power enterprises have been running into large deficits while profits of large coal producers have been rising. Power producers are working to be more engaged in the coal industry. The State-owned Assets Supervision and Administration Commission is encouraging power producers to develop primary energies, such as coal, that are related to power. However, because of the current high price of coal, power producers are not strong at the moment, so long-term supply agreements could be the best solution.

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