China Huadian Corporation

China Huadian Corporation (Huadian Group, 华电集团) is one of the five largest state-owned power generation enterprises in China, administrated by the State Council of the People's Republic of China. Incorporated in 1994, it has grown at the rate of 20% annually and now produces about 10% of China's power. It is one of the Big Five independent power producers along with Huaneg Group, Datang Group, Guodian Group, and CPA Group.

Greenhouse intense
A July 2009 report by Greenpeace China reported that China Huadian Corporation was the fourth largest coal consuming power generator in China with a total consumption in 2008 of 88.4 million tonnes of coal. Greenpeace China estimated that the coal it burned generated 215 million tonnes of carbon dioxide equivalent. The report also estimated that Huadin burnt 338 grams of coal per kilowatt hour, making it the fourth most carbon intensive of the top ten power generators. (Shenua, by comparison, burnt 316 grams of coal per kilowatt hour).

In terms of the amount of CO2 emitted for generating each kWh, Huadin was ranked sixth out of the top ten generators with 751.3 grams of carbon dioxide per kilowatt hour. Datang was the lowest, other than the hydro-based Three Gorges company, with 709 grams of carbon dioxide per kilowatt hour.

Of Huadin's 69 gigawatts of installed generation capacity, 380 megawatts was from wind power.

Overseas expansion
In recent years CHD has embraced a strategy of "investment, construction and maintenance of power plants" outside China. On its website CHD states that senior management "vigorously practices 'going global strategy so as to develop steadily overseas electric power markets such as Indonesia, Cambodia,Myanmar,Russia,India and Saudi Arabia." The company states that three affiliated CHD businesses -- China Huadian HongKong, China Huadian Engineering Co. and CHD Power Plant Operation Co. -- are "taking part in the international business."

Indonesia hydropower and coal projects
In October 2004 the Vice-President of CHD met with a senior official from the Chinese Embassy in Indonesia seeking support for its plans for greater involvement in the Indonesia market. The following year CHD won a $US400 million contract for the construction of 2×300MW coal fired power plant project in West Java, Indonesia. The project was to supply power to PT Pembangkitan Jawa-Bali (PT PJB), a government-owned utility commonly referred to as PT PJB. The consortium selected to build the project was PT. Indika Inti Energy, a wholly-owned subsidiary of the Indika Group.

In March 2005 there was a further high level meeting between CHD officials and the head of the state-run electricity company, PT PLN. The following month CHD signed a Memorandum of Understanding with the governor of South Sumatra, Mr.Syahrial Oesman, for the development of a 4X600MW mine mouth power station in South Sumatra. A few months later the formal Memorandum of Agreement was signed with the Indonesian President, Susilo Bambang Yudhoyono and Chinese vice premier Zeng Peiyan at a business luncheon. Signing the agreement were Mr. He Gong, the president of China Huadian Corporation, Mr. Eddie Widiono, the president director of Indonesian state-run electricity company PT PLN, Mr. Ismet Harmaini, president of Indonesian state-run coal company PTBA and Mr. Hendrik Tee, president of Indika. "This project is to be developed by 55% majority holding of China Huadian corporation," a CHD media release stated. The project is the Banko Tengah power plant. However, an October 2010 JP Morgan research report referred to the project as having stalled. The plant was proposed to be built adjoining the Banko Tengah mine.

In September, 2010, China Huadian Corporation (CHD) announced that it had embarked on a "going abroad" path by launching the 180 MW Asahan No 1 hydropower plant in North Sumatra, Indonesia. CHD also established a branch in Indonesia in August 2010, which became the first foreign-funded company licensed to operate a power plant in Indonesia. CHD Power Plant Operation Co (PPOC) general manager Jin Yingjun said, "Through this project, we have developed a new model for running power stations overseas. We aim to build up our team through this project and then further press ahead overseas." The company also stated in a media release that PPOC had "signed plant operation deals with Indonesia and Malaysia worth $200 million last year" and falgged that it was "currently seeking to build a thermal plant in Vietnam."

CHD also stated that the National Development and Reform Commission (NDRC) had approved a plan of China Huadian Engineering Co, a CHD subsidiary, to build a 65 MW coal-fired power plant on Batam Island, Indonesia.

As of early 2011, the following projects were in various stages of development by China Huadian Engineering in Indonesia:
 * Lafarge, 33 MW coal-fired power plant, Aceh Besar, Sumatra - operating
 * Asahan, hydropower station, Sumatra - operating
 * Batam, hydropower station, Sumatra - under construction
 * Indorama, 60 MW coal-fired power plant, Java - construction completed

Malaysia
In 2009, CHD signed plant operations deals with Indonesia and Malaysia valued at $200 million.

Vietnam coal project
According to a September 2010 article in China Daily, the company "is currently seeking to build a thermal plant in Vietnam and they are conducting the negotiation with the relevant foreign parties." The plant is the 1200MW Phase 1 of the Kien Luong 1 Thermal Power Plant proposed by the Tan Tao Energy Corporation (TEC) of the Tan Tao Group. The Saigon Times reports that the project is the first "BOO (build, own, operate) project in Vietnam, with total investment capital of about US$2 billion." The proposed total plant has been mooted as 4,400-5,200 MW.

Russia project
It was reported in 2010 that CHD will fund a turbine construction project in Russia.

Singapore subsidiary
China Huadian Hong Kong Company will set up its first subsidiary in Singapore.

Cambodia, Malaysia, Cyprus, and Cayman
Following the establishment of its Singapore subsdiary, China Huadian Hong Kong Company planned to set up branches in Cambodia, Malaysia, Cyprus, and Cayman. The company also planned to explore coal mine development.

Finance
In March 2011, senior CHD officials met with Citibank's Managing Director, Head of China Global Banking, Dr. Eugene Qian. A CHD media release states that "CHD is now in the critical period of transformation and structural adjustment. It is in CHD's interest to adopt "Go Abroad" strategy and speed up internationalization". The media release stated that CHD "hoped to get strong support as well as establish financial partnership with Citibank during CHD's internationalization process to ultimately create win-win for both CHD and Citibank." According to the media release, Citibank's Qian indicated that the bank "will fully support CHD to explore oversea [sic] markets."

In late 2010 CHD stated in a media release that China Huadian Hong Kong Company, one of its subsidiaries involved in developing its overseas power industry work, "will set up branches in Indonesia, Cambodia, Malaysia, Cyprus and Cayman" and aimed to increase both its power generation capacity and involvement in coal mine development. "The company partners with the China Africa Cooperation Fund and the ASEAN Fund to develop its projects," the media release stated. According to Fu Weixiong, general manager of China Huadian Hong Kong Company, "Multiple fundraising channels provide solid support for CHD's global expansion."

Subsidiaries

 * Huadian Power International (华电国际电力股份有限公司) (SEHK: 1071, SSE: 600027, A share), which is listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange, is the Group's major subsidiary company. It operates thermal powers stations in China with installed capacityof 26,812 megawatts (MW) as of June 30, 2010
 * Huadian Energy Company Limited (华电B股 SHA:900937, B share) is a thermal power subsidiary based in Harbin, Heilongjiang province.
 * Huadian Resources (华电能源 SSE:600726） is the Group's listed coal company.
 * Huadian New Energy Development Company Limited (华电新能源发展有限公司) is the Group's main renewables subsidiary.

Countries

 * Australia and coal
 * China and coal
 * Indonesia and coal
 * Malaysia and coal
 * Vietnam and coal

Mines

 * Tanjung Enim mine

Power plants

 * Banko Tengah power plant
 * Celukan Bawang power station

External Articles and Reports

 * "China Huadian looks to overseas market," China Daily, September 21, 2010
 * JATAM, London Mining Network and Nostromo Research, Indonesia's Coal: local impacts - global links, Down to Earth newsletter, Number 85-86, August 2010. (Pdf)
 * Bart Lucarelli, "The History and Future of Indonesia's Coal Industry: Impact of Politics and Regulatory Framework on Industry Structure and Performance," Stanford Program on Energy and Sustainable Development, Working Paper #93, July 2010