SP Group (SP) announced an agreement with ENGIE SA, to acquire ENGIE’s 40% stake in Sino-French Energy Services Co. Ltd (SFES) in Chongqing, China. This is SP’s first acquisition of energy assets in China, growing the company’s China presence with sustainable energy solutions.
Stanley Huang, CEO, SP Group, said, “The acquisition of ENGIE’s stake in SFES strengthens SP Group’s District Cooling and Heating presence in Chongqing and expand our capabilities into Combined Cooling Heating and Power (CCHP) offerings for the hospital segment. Together with Chongqing Gas Group, we will continue to play a key role in supporting the hospitals to adopt more energy efficient CCHP and grow the CCHP market share.”
Established in 2010, SFES was a joint venture company between ENGIE and Chongqing Gas Group, a state-owned enterprise that owns 80% of Chongqing’s gas distribution network. SFES is the market leader for CCHP solutions in Chongqing. It operates CCHP solutions deployed in three of the city’s hospitals as well as a District Cooling and Heating plant that serves the Chongqing Danzishi Central Business District. The district is located 2.7 kilometres across the Yangtze river from SP’s integrated cooling and heating plant in Raffles City Chongqing.
SP Group runs an advanced energy-efficient cooling and heating system for Raffles City Chongqing, that commenced operations in September 2019. SP’s cooling operations enables Raffles City Chongqing to reduce energy consumption by more than 40%, compared to conventional building chiller plants.
Besides Chongqing, new partnerships and collaborations are taking root in Shanghai and Guangzhou. In August 2020, SP signed an agreement with the Sino-Singapore Guangzhou Knowledge City (GKC) to develop district cooling and heating solutions for the Knowledge Tower in GKC. In October, SP inked a Memorandum of Understanding with State Grid Shanghai Energy Services to study the feasibility of jointly developing and investing in integrated energy projects to bring sustainable energy solutions to customers in Shanghai.
