ADB Finances Solar Thermal Technology Project in China
19 August 2011: The Asian Development Bank (ADB) has approved a US$100 million loan to boost energy efficiency in Shandong province in the People's Republic of China (PRC).
The project aims to reduce harmful emissions, such as carbon dioxide, and consists of the first of its kind large-scale industrial use of solar thermal technology to generate electricity. Financing will also be used to improve the capacity of government and financial institutions to plan, invest in, and manage future energy efficiency improvements and reduce reliance on coal for power generation and industrial production.
According to Shigeru Yamamura, ADB Energy Specialist, Shandong has the second largest level of industrial output of all provinces in China and is highly dependent on fossil fuels. The financial model chosen is expected to attract domestic private equity funds and overcome financing barriers.
Financing will be provided through a privately-owned group called Golden Yimeng Group and Dongying Lufang Metallic Materials. It will allow the expansion of a biogas capturing system to generate power and supply heat, as well as to produce organic fertilizers. This system will use steam preheated by solar parabolic concentrators to supply a six-megawatt electricity generating steam turbine. [ADB Press Release]