Shenhua's $US1B wind plan

CONTROVERSIAL Chinese coal miner Shenhua Group, which is planning to construct a massive coal mine on the Liverpool Plains farming district in New South Wales, is reportedly considering spinning off its wind farm business in Hong Kong.

Haydn Black

China’s biggest coal producer plans to list its wind farm assets in an initial public offering in Hong Kong valued at between $US800 million and $US1 billion, local media has reported.

The $US1 billion ($A1.3 billion) IPO is expected for the first half of 2016.

Shenhua is no stranger to renewables.

Last November it announced an investigation into the construction of a small wind farm in Tasmania using new Chinese wind turbine generator technology at a ceremony involving Prime Minister Tony Abbott and Chinese President Xi Jinping.

Shenhua and Hydro Tasmania are investigating a proof of concept 10-30 megawatt wind farm that would demonstrate Chinese technology at one of the operating wind farms owned by Woolnorth Wind Farm Holdings, the pair’s existing joint operating company (Shenhua 75% Hydro Tasmania 25%)

The project would also demonstrate the continuing commitment of both companies to renewable energy in Australia.

Woolnorth owns the Musselroe (168 MW), Studland Bay (75MW) and Bluff Point (65MW) wind farms in northern Tasmania.

In April 2013 the pair signed a strategic co-operation agreement in Beijing to investigate a joint Australian wind portfolio of up to 700MW by 2020 at a cost of $1.7 billion.

At the time Shenhua chairman Dr Zhang Yuzhuo said Shenhua was transforming itself from a coal-based integrated energy company into a clean energy and technology supplier.

Renewable energy is an important part of that endeavour.