China-based A-Power Energy Generation Systems has entered into a RMB218m ($32.7m) deal to construct a straw-based biomass power plant in the country.
The engineering, procurement and construction contract will see the biomass plant built in Baisha County in Hainan province for Hainan Century Light Investment.
Based on the availability of straw resources, Hainan Century Light Investment will look to develop two straw boilers, each with 12MW of condensing steam turbines.
A-Power will oversee the build until the project becomes operational, which is expected to take place in early 2012.
The company has seen its Nasdaq-listed shares fall over the course of the year, despite international sales boosting revenues in the second quarter.
On Friday trading, when the deal was announced, its share price spiked to more than $5.1, the highest trading level witnessed in December.
Jianxiang Lu, chairman and CEO of A-Power, said, ‘We are pleased to announce this new contract which will generate additional revenues and profits over a relatively short period of time.’
The company is also developing its wind energy business and in September delivered a prototype wind turbine to be installed at the large-scale Spinning Star project in west Texas, US.
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