The Hindu Business Line : IFC to invest in Chinese firm Honiton Energy

Chennai, April 10 The International Finance Corporation (IFC) plans to provide both equity and debt to Honiton Energy Caymans Plc, a wind energy developer in China.

The Tanti Group, promoters of India’s leading wind turbine manufacturer Suzlon Energy Ltd, has a 23.6 per cent stake in Honiton Energy.

Honiton Energy plans to develop about 1,600 MW of wind energy capacity by 2012 in China’s Inner Mongolia region. It has commissioned 50 MW, and another 100 MW is under development.

According to information available on IFC’s Web site, the cost of the next two phases of the project is estimated at $160 million, and the development of about 550 MW over the next few years is estimated to cost $760 million.

IFC’s proposed investments include an equity component of $40 million and different categories of loans of up to $25 million and $75 million.

According to the IFC site, Honiton has obtained exclusive conditional rights to develop wind energy farms on five separate acreages of Inner Mongolia Autonomous Region of about 2,155 sq km, with a potential to produce 6,200 MW of wind energy and requiring investments of about $8 billion.

Arcapita Bank, a leading investment firm headquartered in Bahrain, and Colossus Holdings, a Singapore-based holding company of the Tanti Group, formed a joint venture and acquired a 90 per cent stake Honiton Energy in July 2008. The partners plan to invest $2 billion to develop 1,600 MW of wind energy capacity by 2012.

Suzlon has supplied the turbines for the first phase of Honiton’s wind farm at Bailingmiao. REpower, a German wind turbine manufacturer in which Suzlon is set to acquire a controlling stake, has a joint venture with Honiton to produce 2 MW wind turbines.

IFC believes that its investment in Honiton Energy, one of the first foreign private developers to deliver wind farms in China, will encourage other investors to participate in China’s wind energy sector.

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