French energy company ENGIE agreed to help usher in a low-carbon economy in China. File photo by Stephen Shaver/UPI | License Photo
BEIJING, Sept. 21 (UPI) -- French energy company ENGIE said it was building on its new strategy for an expanded footprint by shoring up its position in the Chinese market.
ENGIE Chairman Gerard Mestrallat signed a strategic cooperation agreement with Feng Yue, president of Chongqing Energy Investment Group, for capital investments in the Chinese market.
Through the agreement, the companies said total investments were valued at around $215 million, part of which would support the development of a power station and other projects in China.
"Today's cooperation agreement is the consolidation of the two parties' cooperation in the past years, and it keeps pace with their new strategies," the French company said. "This agreement also illustrates their common vision on the transition to a low carbon economy in China."
As China advances on a road to a low-carbon economy, Mestrallet in July signed a memorandum of understanding on co-investments in renewable energy projects and cooperation in energy efficiency strategies with Chinese counterparts.
Beijing committed to cutting emissions of carbon dioxide, a potent greenhouse gas, by more than 60 percent from 2005 levels by 2030.
ENGIE changed its name from GDF Suez this year to reflect what it said was a sign of the "profound" transformation underway in the global energy sector, characterized by decarbonization and development of renewable energy resources.
The company in February became a preferred bidder for the 100 megawatt Kathu Solar Park in South Africa, a country that set a target of adding about 1.6 MW of new renewable energy to its grid each year.
In June, ENGIE and its Indonesian partners signed a deal to purchase and sell up to 1.4 million tons of liquefied natural gas per year from the Jangkrik complex starting in 2017.