Environmental protection solutions specialist Sunpower Group has secured a manufacturing & services (M&S) contract worth over RMB60 million ($11.9 million) with China Huanqiu Contracting & Engineering Corporation, a subsidiary of China National Petroleum Corporation. Both companies are repeat customers of the group.
Under the contract, Sunpower will supply design, procurement and engineering services for a complete demountable flare system, with core components such as the flare tip and integrated pilot light manufactured by Sunpower.
The project is the largest coal-to-glycol project under construction in the world. Delivery is expected to be completed in 2020 and will have a positive impact on the group’s financial performance in FY2020 and FY2021.
“Our partnership with HQC dates back to 2012 and we are pleased to cooperate with them again. Securing this contract is a testament to our strong and long-standing partnership, and signals HQC’s strong confidence in Sunpower’s ability to supply core equipment and comprehensive services for flare systems. This contract also reaffirms Sunpower’s technological expertise and market leadership in the field of flare systems and flare gas recovery,” says Guo Hongxin, executive chairman of Sunpower.
“The GI business has bounced back from the temporary winds of the pandemic in 1H2020, and saw improved profitability due to our continued improvement in operational efficiency and further cost control. GI remains our primary value creator and growth driver that generates long-term, high-quality recurring income and cash flows,” Guo adds.
“The Group now has a portfolio of eight GI projects in operation, one in trial production, three under construction and a robust pipeline of projects under evaluation for investment. To date, the Group has invested and committed approximately RMB1.7 billion in project equity and is on track to invest RMB2.5 billion in project equity by 2021 to build a sizeable and valuable GI asset portfolio,” says Guo.
Shares in Sunpower closed 0.5 cent lower, or 0.9% down, at 53.5 cents on August 31.