Tuesday, 16 March 2010

Dragon Power enters RMB 28 Billion (USD 4.1 Billion) strategic cooperation agreement with the China Construction Bank

In February, China Construction Bank and National BioEnergy (NBE), a subsidiary company of the Dragon Power Group entered into an agreement on strategic cooperation. The China Construction Bank intends to provide upto RMB 28 billion in funding for the construction of biomass power plants in China over the next 5 years. This landmark achievement reflects the dominant position of NBE in the Chinese biomass market as well as a commitment from the China Construction Bank to provide demonstrable support for industry leaders in the renewable energy space, particularly biomass.

The agreement supports the consistent messages from Premier Wen Jiaobao on the importance of renewable energy most recently reinforced by the designation of alternative energy as an emerging strategic industry.

Kai Jiang, Chairman of National Bioenergy and the Dragon Power Group commented “This agreement gives us the platform to continue to execute our strategy and the access to capital to build an additional 100 biomass power plants in China. We are very grateful for the support given to us by CCB and for their vision in supporting the development of biomass as a key source of power for China.”

About dragon Power:- Dragon Power has managed to achieve remarkable growth in the renewable energy industry. Since its inception in 2004, Dragon Power has already established 19 biomass power plants controlling 60% of China’s biomass market. While the biomass power plants are operated through NBE, the design engineering and manufacture of the biomass power plants, is conducted by another subsidiary DP CleanTech, their advanced technology and strong presence in Europe has further accelerated Dragon Power’s global reach.

There are currently 10 plants under construction and plans to start construction of another 13 biomass plants this year. Power generation capacity is expected to expand to one million KW by 2011 and since approval of the RMB 28 billion loan Dragon Power plans to establish 100 biomass power plants with a capacity of three million KW over the next 5 years.  Additionally, Dragon Power is seeking to introduce some large enterprises as strategic partners and start preparing for an initial public offering (IPO) in 2011.