Hanwha Solar One has signed a memorandum of understanding (MOU) with Jiangsu Zhongtian Technology to jointly develop, construct, finance and grid-connect PV projects.
The cooperation has been described as the latest step in “accelerating downstream activities in China” for Hanwha Solar One. Ahead of the move Hanwha Solar One struck a deal with the Bank of Beijing for a three-year credit facility worth US$574 million.
The MOU brings the two companies into a long-term strategic partnership, with a definitive strategic cooperation agreement expected to be entered into within 90 days of the signing. Jiangsu Zhongtian Technology (ZTT) began as a manufacturer of optical fibre cabling for communications, including an involvement in developing China’s telecommunications and electrical grid infrastructure. ZTT has since diversified into green energy, offering a range of services including developing distributed power stations, micro grids and large capacity lithium-ion batteries.
The first project for the two companies to collaborate on will be a 150MW distributed energy project for which ZTT has already obtained permission in Nantong, Jiangsu Province, China, with Hanwha Solar One supplying PV modules.
Hanwha Solar One chief financial officer Jay Seo said: “The contemplated cooperation on ZTT's 150 MW distributed generation project in Nantong, as part of the government's initial national level demonstration pilot, will be a strong start to the relationship between our two companies, and we are confident that further synergies will result in additional business opportunities for both companies. We aim to build up our track record and project profile in EPC to include IPP development and ownership. We will actively participate in China's aggressive programme to develop renewable energy.”