China-based energy company Shenhua Group has collaborated with Hydro Tasmania to jointly invest $1.7bn to develop wind farms in Australia over the decade.
Both the companies have recently signed a strategic co-operation agreement in Beijing, China.
According to the agreement, the two companies would build wind farms adding 700MW more of power capacity to their portfolios.
Commenting on the alliance, Hydro Tasmania CEO Roy Adair said through this agreement the two companies would develop, build and operate a 700MW capcity more of wind farms in Australia by 2020, with a total estimated investment of A$1.6bn.
"Shenhua is a first-class strategic partner for Hydro Tasmania and for the state," added Adair.
The agreement follows the Shenhua’s acquisition of 75% stake each in the Musselroe wind farm and Woolnorth wind farms. Hydro Tasmania retained 25% interest in both the projects, managing them as a part of the partnership.
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By GlobalDataMeanwhile, Musselroe is currently being developed by Hydro Tasmania in north-east Tasmania and is expected to be fully operational by July 2013.
Hydro Tasmania chairman David Crean noted: "his strategic agreement builds upon the excellent relationship that has developed between Hydro Tasmania and Shenhua over the past few years, with respect to Australian wind farm development."
"This follows on from the Roaring 40s joint venture involving Shenhua subsidiary Guohua and Hydro Tasmania from 2007 to 2009 where several wind farms were jointly constructed and managed in China," added Crean.
In addition, the alliance between the companies is said to be significant as it marks the first investment by a Chinese firm in Australia.
