Chinese solar companies and Saudis to build $3 billion projects

Two Chinese solar energy companies have signed deals worth about $3 billion to build power plants in Saudi Arabia, underscoring the oil-rich kingdom’s efforts to boost renewable energy production.

TCL Zhonghuan Renewable Energy Technology Co., the world’s second-largest maker of solar panels, said Tuesday it will partner with Saudi Arabia’s sovereign wealth fund Public Investment Fund and Vision Industries Co. to build the $2.08 billion plant.

And Chinese solar panel giant Jinko Solar Co. has struck a joint venture deal with PIF worth about $985 million. Vision Industries, a private renewable energy company, will also be a shareholder in the joint venture.

Chinese clean energy companies are turning to Saudi Arabia to globalize their production bases as they face unprecedented pressure on margins at home and trade tensions with the U.S. and its allies deepen.

Chinese Vice Premier He Lifeng pledged to deepen cooperation with Saudi Arabia in the areas of energy, trade and finance during a meeting last week in Beijing with Yasir Al Rumayyan, governor of the PIF.

Bloomberg News reported earlier that Saudi Arabia and China’s second-largest wind turbine maker, Envision Energy Co., are close to striking a deal to build a new power plant in the Middle Eastern country.

Also Tuesday, solar equipment giant Sungrow Power Supply Co. signed a deal with Saudi investment firm Algihaz Holding for a storage project. Details of the investment in that deal were not disclosed.

Hainan Mining Co. has signed a memorandum of understanding with Ajlan & Bros Holding Group for the potential production of lithium salt for use in battery production.

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