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US firms scoop 1bn deal despite trade war threat

EIGHT energy projects worth US$1.5 billion (1 billion) have been agreed by the US and China despite threats of a trade war between the two countries.

The deals were given the green light during a US trade mission to Shanghai last week.

The biggest scheme is for a US$1.2 billion (800 million) expansion of the Wujing power station, signed as a memorandum of understanding between Cogen Technologies and Shanghais Electric Power Corporation (EPC).

Under the proposal, Cogen will help install two 600 MW coal-fired generators complete with scrubbing equipment to reduce sulphur dioxide emissions.

The Wing Group also signed a letter of intent with the EPC to build a US$700 million (470 million) liquefied petroleum gas-powered station to replace a coal-fired plant.

Texas-based contractor Enserch Development has linked with EDC Shaoxing Power for a US$27 million (18 million) coal-fired pow-er station plan in Zhejiang province.

Another power group, Community Energy Alternatives has formed a joint- venture with the Jinqiao Heat and Power Corporation to develop a US$28 million (19 million) co-gener- ation plant producing steam and power for the Jinqiao export processing zone in Shanghais Pudong industrial zone.

Other schemes included agreement for a 50 MW co-generation plant in Hunan province worth US $50 million (34 million) and a US$70 million (47 million) gas turbine project.

Yang Xiong, deputy director of Shanghais municipal planning commission, said the city needed to double its installed capacity by the year 2000 from 5,000 MW to 12,000 MW.

This will expand to 22,000 MW by 2010.

The city authorities are also keen to develop alternative energy sources including liquefied natural gas and LPG to reduce its dependence on coal.