Energy
Sector | Climate change |
Sub-sector | Energy |
Location | China |
Recognising the future potential of wind energy in this, Macquarie Asset Management (MAM) - through its Macquarie Asia Infrastructure Fund 2 (MAIF2) – acquired a 50 per cent joint controlling stake in Shanghai Sineng (SHSN), a private wind development company in China, which, in 2017, had projects strategically located in northern China where there are strong wind resources.1
MAM actively managed the construction of SHSN’s portfolio in line with international health, safety and environment (HSE) standards for all projects. This included independent safety audits and training for engineering, procurement and construction (EPC) contractor and sub-contractors. In addition, a new Chief Operating Officer experienced in wind project development and with knowledge of international standards was appointed in order to strengthen management capability and standards.
SHSN also leveraged Macquarie’s global expertise to complement the platform’s capability gap in conducting wind resource assessment and optimising turbine selection.
Outcome
In December 2021, MAIF2 entered into definitive agreements to divest SHSN through asset-level divestments and a sale-back of the fund’s stake to the co-shareholder – a move that underscored the significant demand from state-owned enterprises to acquire and operate renewable assets.
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