China Datang Corporation Renewable Power Co Ltd will join efforts to establish a joint venture for developing wind farms and other renewable energy resources in Australia, said Datang in a statement published on its website Wednesday.
This joint venture -- AusChina Energy Group -- will be founded by Datang Renewable in cooperation with CBD Energy Limited, an Australian-based company, and Baoding Tianwei Baobian Electric Co Ltd, a company based in north China's Hebei province, according to the statement.
Under the agreement, Datang Renewable holds a 63.75 percent stake in the new joint venture, while CBD Energy has a 23.75 percent stake, and Baoding Tianwei garners the remaining stake.
According to the 21st Century Business Herald, a Beijing-based Chinese language newspaper, under an initial plan, the joint venture will set up a wind farm and solar power plant in three years, with an investment of 3 billion Australian dollars ($3.19 billion).
The gross investment over the next eight years will reach A$6 billion ($6.46 billion). The ultimate objective of the joint venture is to eventually occupy 33 percent of the renewable energy market in Australia.
The two Chinese companies -- Datang Renewable and Baoding Tianwei -- will supply facilities and funds for the project.
Datang Renewable, the second largest wind farm operator in China after Longyuan, floated its shares in the Hong Kong Stock Exchange at the end of last year.
"This joint venture will also serve as a bridge for Datang to participate in other overseas projects," said Hu Guodong, Deputy General Manager of Datang Renewable.
"In addition to Australia, we are talking with partners in the United States and South America to jointly develop wind farms in those places. We are negotiating some projects," said Hu.
Gerard McGowan, a senior executive at CBD, said wind power feed-in tariffs will equal and compete with thermal power feed-in tariffs in three years.
Going global has become a major theme for Chinese wind farm operators this year.
On April 13, Longyuan, the Chinese wind power development giant, signed an agreement with Gamesa, a leading Spanish wind turbine maker, to jointly develop wind farms in the United States, Europe and South America.
Other top Chinese wind turbine makers are also eyeing the world market.
Sinovel, China's largest wind turbine maker, has mapped out plans to sell half of its turbines in the world market over the next five years.
Tao Gang, Vice President of Sinovel, said, "We are keeping a watchful eye on mature European and North American markets and the emerging Australian and South American markets."
"The growth rate of China's wind power market will slow down sooner or later, considering its mammoth base. We may make greater profits overseas and diversify our clients. This will ensure our sustainable development," Tao said.