World Energy Giant BP group announced Thursday that its subsidiary BP Solar has signed a contract with a local company to form a joint venture to develop solar photovoltaic in China.
The joint venture, jointly established with China Xinjiang SunOasis Co., will see the creation of two companies, BP SunOasis Company Limited and BP SunOasis (Prime) Company Limited, which together will manufacture, market and sell solar photovoltaic (PV) products and systems in China.
Based in Xi'an, capital of West China's Shaanxi Province, the joint venture will enjoy a 25-megawatt manufacturing capacity. It has a total registered capital of over 10 million US dollars and the equity percentage split between SunOasis and BP Solar is 51 to 49, according to BP.
The joint venture represents an excellent opportunity for BP Solar to position itself and grow in the growing solar PV market by expanding its manufacturing network.
China is planning for its domestic solar PV market to reach up to 400MW by 2010 and 10,000 MW by 2020 from a 2005 base of 20MW.
According to BP, the joint venture will focus on providing access to sustainable power in remote rural areas throughout China, as well as the developing grid-connect market.
Lee Edwards, CEO of BP Solar, said that it is a great strategic opportunity for SunOasis and BP Solar, both of which share a common vision for the long-term solar potential in China.
The joint venture will add to BP Solar's already strong presence in the Asia-Pacific region, he said.
As one of the world's largest oil, gas and petrochemical companies, BP has been operating in China since the early 1970s and has invested over three billion US dollars in the country's commercial projects.
So far, BP's activities in China include the production and importation of natural gas, supply of aviation fuel, import and marketing of LPG, fuels retailing, lubricants blending and sales, petrochemical manufacturing and solar electric facilities.
Xinjiang SunOasis Co., Ltd (SunOasis), founded in 2000, is a private limited company located in northwestern Xinjiang Uygur Autonomous Region. Its largest shareholder, Tebian Electric Apparatus Stock Co., Ltd (TBEA) is a public listed company in China and one of the top largest transformer manufacturers in the world.
SunOasis is the leading solar system integrator in China with approximately 25 to 30 percent share of the Chinese market.