Finance Association, December 12 (Reporter Liang Xiangcai) After planning a 10 billion yuan 2 GW new energy project with Ningde Era (300750.SZ), China Nuclear Titanium (002145.SZ) once again teamed up with Guangdong Construction Engineering (002060.SZ) to invest a total of 4.27 billion yuan to build related energy projects to supplement its recycling industry projects.

Jointly with Guangdong Construction Engineering to sign 4.27 billion yuan energy project

On the evening of the 11th, CNNC Titanium White announced that, based on the company's investment in the construction of the “sulfur-phosphorus-iron-titanium-lithium” green recycling industry project (hereinafter referred to as the circular industry project) in Baiyin City, the Baiyin Municipal Government supported the company's planning and construction of cogeneration projects, source grid load storage projects, and Jingtai New Energy projects in order to guarantee the electricity demand for recycling industry projects while providing energy security and green energy for recycling industry projects.

Specifically, the cogeneration project: construction of a 2×440t/h high temperature and ultra-high pressure circulating fluidized bed boiler+2 × 59MW pull-back steam turbine generator set. The construction site is located in Yindong Industrial Park, Baiyin High-tech Zone, Baiyin City. The construction unit is Gansu Zhonghetong Thermal Energy Co., Ltd., a wholly-owned subsidiary of the company. The project mainly provides steam and power for CNNC's titanium dioxide recycling industry projects. It mainly produces steam, cogeneration, and steam electricity. The total investment of the project is estimated to be about 0.8 billion yuan, and the construction period is expected to be 2 years.

Source network load storage project: Construction of 0.6 million kilowatt photovoltaic or wind power (subject to actual approval) and the construction of a new collection station, transmission and distribution line, and 0.06 million kilowatt/0.12 million kilowatt-hour energy storage as a support for the CNNC titanium dioxide cycle industry project. The construction site is located in Zhongquan Town, Jingtai County, Baiyin City. The construction unit is Baiyin China Nuclear Times New Energy Co., Ltd., a wholly-owned subsidiary of the company. The total investment of the project is estimated to be about 2.5 billion yuan, and the construction period is expected to be 2 years.

Jingtai New Energy Project: Construction of a photovoltaic or wind power project. The construction site is located in Jingtai County, Baiyin City. The construction unit is Baiyin Zhonghe Times Renewable Energy Co., Ltd., which is the company's wholly-owned subsidiary, and is responsible for developing all new energy projects obtained by CNNC Titanium in Baiyin City. The initial investment is 0.05 million kilowatt photovoltaic power generation projects (which have obtained a registration certificate) and 0.2 million kilowatt wind power projects (construction targets have been obtained). The total investment is about 0.97 billion yuan. Strive to achieve a total installed capacity of 2 million kilowatts, supporting the construction of 10% x 2h energy storage.

In terms of cooperation, the cogeneration project and the source network load storage project each have 35% of the shares, Guangdong Construction Engineering each holds 65% of the shares; and the Jingtai New Energy Project holds 100% of the shares.

It is worth noting that the above three project holders are responsible for project coordination, management, operation, financing, etc. When CNNC Titanium White requires the operation and management of the cogeneration project, CNNC Titanium White can carry out the later operation and management of the project company.

It should be pointed out that CNNC Titanium White stated in the risk warning that the agreement in the announcement is only a framework agreement for development cooperation. The implementation of the project must obtain project approval and approval, and cooperative investment matters must be subject to the respective approval procedures of both parties to the agreement. Therefore, there is uncertainty about the execution of the matters covered by the agreement, and the specific business involved in the agreement is subject to the separately signed business cooperation agreement.

New energy project cooperation with Ningde Times “no further details”

In order to meet the electricity needs of the “sulfur-phosphorus-iron-titanium-lithium” green cycle industry project, CNNC Titanium-White wanted to join forces with the Ningde Era to invest 10 billion yuan in a new energy project “no further details” three years ago.

While looking through CNNC Titanium's annual announcements, CNA found that as early as September 18, 2021, the company announced that its subsidiary, Baiyin CNNC Era Renewable Energy Co., Ltd. and the Baiyin Municipal People's Government, signed an investment framework agreement for a new energy power generation project with a total investment of about 10 billion yuan. The project includes 1,500 megawatts of photovoltaic power generation, 500 megawatts of wind power generation, and supporting 400 megawatts of energy storage.

At the same time, the announcement also revealed that Baiyin CNNC Times Renewable Energy Co., Ltd. is a joint venture established by CNNC Titanium and Times Yongfu Technology Co., Ltd., a holding subsidiary of Ningde Times. CNNC Titanium and Times Yongfu each held 50% of CNNC Era's shares.

However, less than a year after the announcement, the Ningde era chose to break up. According to Tianyan Research, on June 1, 2022, Times Yongfu Technology Co., Ltd. (now renamed Times Green Energy Co., Ltd.) withdrew 50% of its shares in Baiyin CNNC Era Renewable Energy. Immediately after that, on June 14, CNNC Titanium announced the progress of this 10 billion project and stated that the planned construction period for the project is from August 2022 to August 2024.

After less than a month, the project has broken ground. According to local official media in Baiyin City on July 4, 2022, construction of CNNC Titanium-White's 2GW “integrated source network load storage” new energy power generation project began in Jingtai County. A relevant person in charge of the company once told the media, “The project is being built in two phases. The first phase is a 0.5 GW photovoltaic construction, and the second phase is a 1.5 GW wind power generation construction. The first phase is scheduled to be completed by the end of June 2023, and the second phase will be completed by the end of 2024. Ultimately, the entire project will form a circular industry and achieve the goal of dual carbon.”

Regarding the latest progress of the 2GW “integrated source network load and storage” new energy power generation project, the company stated in its annual report of April 18, 2024 that Baiyin China Nuclear Times New Energy Co., Ltd. has achieved a wind power target of 600 megawatts (or 0.6 million kilowatts).

Coincidentally, the source network load storage project announced by the company also plans to build 0.6 million kilowatts of photovoltaic or wind power.