China Green Energy to sell 25% stake to foreign investor

Alternative energy producer China Green Energy said it is seeking to raise about US$100 million from asset sales. It said in May that it hopes to sell a 25% stake in the company to foreign investors before an initial public offering of as much as US$200 million. Alternative energy companies have attracted interest from investors as Beijing tries to reduce the country’s reliance on coal, which accounts for more than 70% of its total energy production, through government policies that are supportive of cleaner energy. The nation’s power grids are required to buy all available power generated from alternative sources starting in September 2007 and Beijing plans to have 16% of electricity supply generated by renewable sources by 2020, at an investment cost of US$198 billion. U.S.-based Waste Management Inc., , France’s Veolia Environnement S.A. and GDF Suez S.A. are competing for the right to build waste-to-energy plants with a subsidiary of Shanghai Chengtou Holding. (May 4, 2009)