PowerChina, Toshiba sign cooperation pact on hydro, geothermal, thermal power
Author: U.S. Army Corps of Engine. License: Creative Commons, Attribution 2.0 Generic.
Power Construction Corporation of China Ltd (PowerChina) and Toshiba Corp (TYO:6502) have signed a strategic agreement to cooperate in hydro, geothermal and thermal power systems, the Japanese group said today.
The companies have already been cooperating in power generation businesses, especially in hydropower generation. The new agreement, signed at the China-Japan Third-Party Market Cooperation Forum, deepens their partnership to Toshiba's other systems and equipment, and to joint work on investments and arrangement of finances for projects, according to the announcement.
PowerChina currently owns a 20% stake in Toshiba Hydro Power (Hangzhou) Co Ltd (THPC) that was set up by Toshiba in China in 2005. The companies have agreed to cooperate in the Tanahu hydropower project in Nepal and Koukoutamba hydropower project in Republic of Guinea, where PowerChina acts as engineering, procurement and construction (EPC) contractor and THPC is providing hydroelectric turbines and generators under a framework purchasing agreement.
Toshiba said that demand for "highly efficient" thermal power plants is expected to grow in Asia and the Middle East regions. The Japanese company supplies power generation equipment for combined-cycle power plants and ultra-super critical coal-fired power plants.