New Development Bank Agrees to Bankroll Putian Green Energy Project
The New Development Bank founded by the so-called BRICS nations of Brazil, Russia, India, China and South Africa approved a 2 billion yuan loan to China’s central government on Nov 22, the proceeds of which will be used to fund construction on the second phase of the Pinghai Bay offshore wind power project in Putian, Fujian province.
The new wind farm is designed to have a total capacity of 700 megawatts, making it one of China’s largest projects of this kind. Construction on the 50-MW first phase of the project is already complete and went into operation in July. The second phase is expected to add another 250 MW of capacity.
Fujian Zhongmin Offshore Wind Power Co, the owner of the project, has now launched a competitive tendering process to procure the wind turbine generator units and accessory equipment that will be used in the second phase of the project, with a deadline of Dec 30.
The Putian-based company is also planning an even larger 400 MW capacity extension for the third phase of the project.
When all three phases are complete, the Putian project will generate an estimated 873 million kilowatt-hours per year, replacing 277,500 tons of standard coal. This will cut carbon dioxide emissions by 2.1 million tons annually, according to the State-owned Fujian Investment and Development Group, the parent company of Zhongmin Offshore Wind.
The green energy project in Putian is the first in Fujian and second in China to benefit from the New Development Bank’s sovereign project loans to the Chinese government.
Including the Putian project, the bank approved seven projects involving funding of more than $1.5 billion in its first full year of operations, said the bank’s president, KV Kamath.
The bank’s mission is to facilitate infrastructure construction and sustainable development in emerging economies and developing countries.
As Fujian’s first project approved by the National Energy Administration, the Putian offshore wind farm has previously received an endowment worth $900,000 from World Bank, and a 300 million yuan concessional loan from the China Clean Development Mechanism Fund.
The project is situated in Pinghai Bay, between Daitou Peninsula and the Nanri Island, under the jurisdiction of Putian city in northern Fujian.
A map shows the geographic location of the project. [Photo from Fujian Investment and Development Group]