Sembcorp to acquire AES power asset portfolio in China

Sembcorp Utilities will acquire part of AES Corp's power asset portfolio in China for US$85.5 million.

A sale and purchase transactionhas been signed between the two groups.

The acquisition comprises a 49% stake in four wind power assets and a 25% stake in a coal-fired power plant.

China-based AES Huanghua, AES Hulunbeier Wind Power, AES Xinba'erhu Wind Power and AES Chenba'erhu Wind Power currently own the wind assets, which have a total generating capacity of 247.5MW, while AES China Corp owns the coal-fired power plant.

Sembcorp Group president and CEO Tang Kin Fei said the acquisition strengthens the company's global energy portfolio and provides a platform to accelerate Sembcorp's growth in the renewable energy sector.

"As a responsible energy player, Sembcorp aims to have a portfolio of high efficiency thermal and renewable power generation assets including a growing component of low carbon capacity," said Fei.

With the acquisition, Sembcorp's renewable energy capabilities now include wind, in addition to biomass.