A subsidiary of CHINA POWER (02380) has entered into an engineering, procurement, and construction contract for the second phase of the Lubei project, focusing on solar power generation and energy storage infrastructure.

The contract, valued at approximately RMB 435 million (about HKD 500 million), was signed between Weifang New Energy, an indirect non-wholly owned subsidiary, and State Nuclear Power Engineering Research & Design Institute Co., Ltd.

A consortium led by China Railway 21st Bureau Group, with State Nuclear Power Engineering Research & Design Institute and China Railway 14th Bureau Group as members, will serve as the general contractor.

The scope of work includes the construction of a 200 MW photovoltaic power plant and a 57 MW/114 MWh energy storage facility.

Contractor services encompass survey and design, equipment procurement, permit handling, construction and installation, salt pan renovation, commissioning, completion certification, training, final delivery, performance guarantees, and follow-up services during the defect liability period.

The Lubei project is situated on saline-alkali tidal flats in Weifang, Shandong Province, and employs a complementary "photovoltaic and salt pan" model for integrated development.

By installing power generation equipment above the salt pans, the project preserves traditional salt production while significantly enhancing land use efficiency compared to conventional renewable energy projects.

Upon completion, the project is expected to strengthen the local energy mix, support national goals for building a "green energy belt in the lower Yellow River region," and facilitate the area's transition to high-tech chemical industries.

This investment aligns with the company's strategic objectives for green and sustainable development and is anticipated to improve the group's long-term profitability.