By: Zawya

Chinese clean energy enterprise Central New Energy Holding Group has announced the signing of a Memorandum of Understanding (MoU) with international power infrastructure company EGN Ltd for joint cooperation in the investment and development of solar energy projects and potentially even local photovoltaic module production in the Sultanate of Oman.

The move adds to a flurry of predominantly China-based investments in Oman’s burgeoning clean energy manufacturing sector, which currently encompasses the production of solar panels and modules, wind turbines, electrolysers and related equipment.

The announcement was made in a filing by publicly-traded Central New Energy Holding Group to the Hong Kong Stock Exchange earlier this week. Central New Energy is described as a diversified enterprise mainly engaged in green building photovoltaic integration, new energy and engineering, property management services, smart logistics and other activities.

EGN Ltd, a clean energy-focused power infrastructure company incorporated in the Cayman Islands, is principally engaged in the operation of large-scale data centres worldwide, notably across the US, Latin America and Asia. The company also has a presence in Oman, which is home to an expanding cluster of traditional data centres and data mining centres.

Under the terms of the MoU, EGN will “take the lead in developing an integrated ‘generation-grid-load-storage’ project in Oman, based on green energy and incorporating data centres”. Central New Energy Holding, for its part, will “provide investment, construction and operation of photovoltaic power plants, as well as integrated energy management services”.

Significantly, the two parties will also support technology research and development and promote industrial localisation. With the goal of localising the value chain, Central New Energy Holding — together with its upstream and downstream partners — “will invest in establishing green energy component production bases in Oman to realise localised production. This will also include training local talent and contributing to the development of industrial technical standards in Oman”, the MoU stated.

Additionally, the parties may explore further project opportunities in Oman, including the potential establishment of joint ventures and other models of deeper cooperation, to build regional demonstration projects and promote project implementation. Furthermore, they will jointly seek diversified financing channels, including medium- to long-term policy-based funding in Oman, international funds, green bonds and joint investment funds.

“Together, the parties will build a collaborative industrial ecosystem and promote the development of upstream and downstream industry clusters”, the MoU added.

Commenting on the MoU signing, CHG EnSOL Renewable Technology Co Ltd, a wholly-owned subsidiary of Central New Energy Holding Group, stated in a post: “In accordance with the principles of equality and mutual benefit, industrial synergy and coordinated development, the parties will jointly invest in and develop photovoltaic power plant projects, establish production capacity for photovoltaic modules and pioneer a new model integrating green energy and the digital economy. This initiative aims to achieve mutual development and win-win outcomes”.