Huaneng Power Lays Foundation for $1.3 Billion Power Plant in China’s Jilin Province

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Researched by Industrial Info Resources (Sugar Land, Texas). The first phase construction of a $1.3 billion power plant being built by Huaneng Power International Incorporated (NYSE:HNP)(Beijing, China) in Jiutai County, 50 kilometers east of Changchun, capital of China's northeastern Jilin Province started May 13, 2007. Wang Min, Party Secretary of Jilin Committee, Han Changfu, Governor of Jilin province, and Li Xiaopeng, President of China Huaneng Group attended the ceremony. The project will be the largest thermal power plant in Northeast China upon its completion.

The project was initially signed between the Government of Jilin and China Huaneng Group in the beginning of 2005. All approval procedures for phase I of the project were finally completed on February 26 after two years of effort made by both parties.

The first phase construction occupies 30 hectares and is expected to begin operations in 2009. The two units for the second phase of construction will be ready to generate electricity between 2011 and 2015.

On the same day, Han Changfu and Li Xiaopeng also jointly signed the Cooperative Agreement on Development and Construction of Energy Projects on behalf of the Government of Jilin province and China Huaneng Group in Changchun. According to the agreement, Jilin province will further support China Huaneng Group in the construction of Huaneng Jiutai Thermal Power Plant’s phase II and large-scale and mid-sized heat combined power projects, as well as wind power projects in Jilin province.

Huaneng Jiutai Thermal Power Plant plans to build four 660 MW supercritical coal-fired generating units in two phases, a total installation capacity of 2,640 MW, by taking advantage of rich coal resources to the south of Longjiabao, Jiutai city, as well as those in the adjacent Heilongjiang province. Phase I will have an investment of $633 million to build two 660 MW supercritical coal-fired generating units together with a flue gas desulfurization scrubbers. Upon the completion of the project, more than 7,260 GWh of electricity can be generated every year, which could not only greatly alleviate the current power shortage in Liaoning and Jilin provinces, but also improve the power structure in Northeast China. Currently, the pre-stage preparation work for phase II is also underway.

Huaneng Power International Incorporated is an affiliated company of China Huang Group. Its subsidiaries develop, construct, operate and manage large thermal power plants in China on a nationwide basis. At present, the company owns a total of 23,822 MW of attributable installed capacity and is constructing or planning to develop additional 16,335 MW of capacity, making it one of the largest independent power producers in China. The company was established on June 30, 1994 and completed its initial public offering of 1,250,000,000 overseas listed foreign shares in October 1994.

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