A-Power re-focus sees China CHP order

• 13 years ago (2011-04-19)
• Junior Isles

Asia 859 Renewables 757

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A-Power Energy Generation Systems Ltd. has said it has reached an agreement to build a new combined heat and power plant in China worth an estimated $75 million.

The memorandum of understanding with Liaoyuan Zhongneng Electrical Equipment Ltd. calls for two 25 MW power generation units at the power plant.

A-Power has been hit by reduced wind-turbine sales recently; its stock is down 61 per cent over the past 12 months. As a result, it has focused more on its power generation business and won several large contracts in recent months.

In March the company agreed to build a biomass power plant in China for about $30.5 million and in January announced two contracts worth about $58 million for a residential development and shopping centre project in northern China.

The company decided to postpone the March release of its 2010 earnings, saying the delay would allow its auditors extra time to complete their work. In December, A-Power reported its third-quarter loss widened as revenue plunged amid lower-than-expected sales of wind turbines.

The company said it will disclose more details of the project after it signs the final contract.