$59.71m will be injected into the first phase of development.
Sunpower Group plans to invest in a biomass cogeneration project in Tongshan District, Xuzhou City of Jiangsu Province, it said in a bourse filing.
The Tongshan project will be constructed in phases and have a total capacity of 2 × 130 tons/hour (t/h) steam boilers and 2 × 35 megawatt (MW) electricity generators. The estimated investment for Phase 1 of the Tongshan Project is approximately $59.71m (RMB420m).
It will be developed under a joint venture, of which Sunpower owns an 85% stake. Upon completion, the biomass cogeneration plant will supply civil heating to homes in Tongshan District as well as supply electricity to the State Grid.
The Tongshan project has been granted an exclusive concession right to supply heating by the Tongshan District Government.