CN Energy Group to Invest $207M in Xilinhot Wind Power Project
Ticker: CNEY · Form: 6-K · Filed: Sep 26, 2024 · CIK: 1780785
Sentiment: bullish
Topics: renewable-energy, investment, wind-power, joint-venture
TL;DR
CN Energy Group is dropping $207M on a new 100MW wind farm in Inner Mongolia, expected online Q4 2025.
AI Summary
On September 25, 2024, CN Energy Group, Inc. announced that its wholly owned subsidiaries, Zhejiang CN Energy Technology Development Co., Ltd. and Manzhouli CN Energy Technology Co., Ltd., have entered into a cooperation agreement with Inner Mongolia Energy Development Co., Ltd. This agreement aims to jointly develop and operate the "Xilinhot Wind Power Project" with an estimated investment of approximately RMB 1.5 billion (approximately $207 million USD). The project is expected to have a capacity of 100 MW and is anticipated to commence operations in the fourth quarter of 2025.
Why It Matters
This significant investment in renewable energy infrastructure signals CN Energy Group's strategic expansion into the wind power sector, potentially diversifying its revenue streams and contributing to China's green energy goals.
Risk Assessment
Risk Level: medium — The investment involves significant capital expenditure and relies on the successful development and operation of a new wind power project, which carries inherent construction and operational risks.
Key Numbers
- RMB 1.5 billion — Investment (Estimated capital required for the Xilinhot Wind Power Project)
- $207 million USD — Investment (USD) (Approximate USD equivalent of the RMB 1.5 billion investment)
- 100 MW — Project Capacity (The planned power generation capacity of the Xilinhot Wind Power Project)
Key Players & Entities
- CN Energy Group, Inc. (company) — Filer of the report and investor in the project
- Zhejiang CN Energy Technology Development Co., Ltd. (company) — Wholly owned subsidiary of CN Energy Group involved in the project
- Manzhouli CN Energy Technology Co., Ltd. (company) — Wholly owned subsidiary of CN Energy Group involved in the project
- Inner Mongolia Energy Development Co., Ltd. (company) — Cooperation partner for the wind power project
- Xilinhot Wind Power Project (project) — The subject of the cooperation agreement
- RMB 1.5 billion (dollar_amount) — Estimated investment for the Xilinhot Wind Power Project
- $207 million USD (dollar_amount) — Approximate conversion of the RMB 1.5 billion investment
- 100 MW (capacity) — Expected capacity of the Xilinhot Wind Power Project
- Q4 2025 (date) — Anticipated commencement of operations for the project
FAQ
What is the primary purpose of the cooperation agreement announced by CN Energy Group?
The cooperation agreement is for the joint development and operation of the "Xilinhot Wind Power Project".
Who are the parties involved in the cooperation agreement?
The parties are CN Energy Group, Inc. (through its subsidiaries Zhejiang CN Energy Technology Development Co., Ltd. and Manzhouli CN Energy Technology Co., Ltd.) and Inner Mongolia Energy Development Co., Ltd.
What is the estimated investment for the Xilinhot Wind Power Project?
The estimated investment is approximately RMB 1.5 billion, which is about $207 million USD.
What is the expected capacity of the Xilinhot Wind Power Project?
The project is expected to have a capacity of 100 MW.
When is the Xilinhot Wind Power Project expected to commence operations?
The project is anticipated to commence operations in the fourth quarter of 2025.
Filing Stats: 363 words · 1 min read · ~1 pages · Grade level 8.9 · Accepted 2024-09-26 16:36:01
Key Financial Figures
- $19,690,929.15 — ice of RMB138,204,750.62 (approximately $19,690,929.15), which shall be paid by Xinbaocheng in
Filing Documents
- cney_6k.htm (6-K) — 12KB
- cney_ex991.htm (EX-99.1) — 57KB
- cney_6kimg2.jpg (GRAPHIC) — 17KB
- 0001477932-24-005953.txt ( ) — 94KB
From the Filing
cney_6k.htm UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the Month of September 2024 Commission file number: 001-39978 CN ENERGY GROUP. INC. Building 2-B, Room 206, No. 268 Shiniu Road Liandu District, Lishui City, Zhejiang Province The People's Republic of China (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F Form 40-F On September 25, 2024, CN Energy Group. Inc. (the "Company"), through its wholly owned subsidiaries in China, Zhejiang CN Energy Technology Development Co., Ltd. ("Zhejiang CN Energy") and Manzhouli CN Energy Technology Co., Ltd. ("Manzhouli CN Energy"), entered into a Share Transfer Agreement (the "Agreement") with Xinbaocheng Industrial Group Co., Ltd. ("Xinbaocheng"). Pursuant to the Agreement, Zhejiang CN Energy agreed to transfer 90% of its equity in CN Energy Industrial Development Co., Ltd. ("CN Energy Development"), and Manzhouli CN Energy agreed to transfer its 10% of equity in CN Energy Development to Shanghai Xinbaocheng Industrial Group Co., Ltd. ("Xinbaocheng") (the "Transfer") for a total purchase price of RMB138,204,750.62 (approximately $19,690,929.15), which shall be paid by Xinbaocheng in installments according to the schedules set forth in the Agreement. The new corporate structure of the Company after the Transfer is demonstrated in the diagram below. The foregoing descriptions of the Agreement are summaries of certain material terms of the Agreement, do not purport to be complete and are qualified in their entirety by reference to the agreements, which are attached hereto as Exhibits 99.1. EXHIBITS Exhibit No. Description 99.1 English Translation of the Share Transfer Agreement by and among Zhejiang CN Energy Technology Development Co., Ltd., Manzhouli CN Energy Technology Co., Ltd. and Shanghai Xinbaocheng Industrial Group Co., Ltd. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CN Energy Group. Inc. Date: September 26, 2024 By: /s/ Wenhua Liu Name: Wenhua Liu Title: Interim Chief Executive Officer 3