Pacific Green Technologies Inc (OTCMKTS:PGTK) has bought ENGIN, the Chinese developer of concentrated solar power (CSP) projects and partnered with PowerChina, the US-based supplier of emission control systems
The Chinese company, Shanghai Engin Digital Technology Co, has developed, designed and engineered three utility-scale CSP plants in China. The facilities include the 100-MW Dunhuang molten salt tower CSP plant, the 50-MW CGN Delingha parabolic trough CSP system and the 10-MW Dunhuang molten salt tower CSP system. It also has a salt water desalination facility in Indonesia.
The Company has acquired ENGIN through two separate trades (the”Transactions”). The Transactions will be financed by the Company’s own internal fiscal resources. Over the next six months, ENGIN’s staff will be incorporated into the organization’s present nearby offices in Shanghai.
Pacific Green acquired a 75% stake in the company for a whole amount of CNY 76 million (USD 11.4m/EUR 10.4m) from Beijing Shouhang Resources Saving Technology Company Ltd (SHE:002665), such as CNY 20 million payable on conclusion of numerous performance tests. In addition, the business acquired the remaining 25% stake in the Chinese developer from investors Liu Tao and Liang Qi to get CNY 2 million and 125,000 new stock in Pacific Green.
International Strategic Alliance Agreement
As part of the Shouhang Agreement, the parties have agreed an intent to enter an International Strategic Alliance Agreement between PGTK, Shouhang and PowerChina for the development of CSP plants whereby PGTK and ENGIN provide the Intellectual Property, the technical know-how, design and engineering, Shouhang provides manufacturing of the solar field and molten salt tank services and PowerChina provides the EPC role both in China and international markets.
“We are very pleased to have acquired ENGIN and to incorporate new advanced technologies, intellectual property and engineering know-how into our successful business model. ENGIN has been at the core of developing CSP technologies in China and will be at the core of this exciting new part of our business.
We also look forward to building a strong relationship with Shouhang as both a strategic partner and client. We have achieved great success in the growth of our Marine Division and alongside that growth we intend to expand our land-based initiatives. Our strategic goal is to become the number one company in environmental technologies. â€
Scott Poulter, Pacific Green Technologies’ CEO
A link to PGTK’s investor deck is here.
