Privately-owned Queensland company, Pulse Energy, has signed a multi-million dollar deal to set up power stations and sell clean electricity in China.
The Brisbane-based company will invest $160 million to build 11 biomass power stations in China from the middle of this year.
The power stations, which will use CSIRO-developed technology that uses sugar cane waste to generate electricity, are expected to be operational within a year.
The company has also secured fuel supply contracts worth $420 million and will roll out 30 more power stations over the next three to five years.
Pulse Energy, which was set up in 2001 and is owned by the Weis family, has established a power purchase agreement in China under the country's new electricity scheme.
China has made a $180 billion commitment over the next 15 years to ensure renewable energy represents 15 per cent of its total generated power.
"We've got an agreement over a long period of time to sell the electricity into the grid," Pulse Energy business development director Damien Weis said.
"We are going to be one of the first companies in the world to take advantage of new electricity tariffs in China, which are very favourable to biomass.
"It's commercially viable for us and the numbers stack up really quite well."
The company will also apply to gain carbon credits stemming from the Kyoto Agreement.
Mr Weis said Pulse Energy was in talks with "a number of players" to join them in the China deal.
Pulse Energy is currently working on projects in Cuba, Mexico, The Caribbean, The Pacific and China.
Front page
RSS Feed