Saudi Arabian energy company Acwa Power has opened a renewable-energy innovation centre in Pudong New Area in Shanghai.
The move is part of the company’s aim to expand its renewables presence in China, according to a statement.
The new facility will focus on five areas: photovoltaics, wind, energy storage, green hydrogen and seawater desalination, Acwa said.
The first phase involves an investment of RMB20 million ($2.8 million) in a research and development centre and a green energy laboratory, the statement said.
Acwa Power has signed preliminary agreements with Gulf Renewables Laboratory (GRL) and Shanghai Jiao Tong University (SJTU) to develop the project.
Earlier this year, Acwa Power, which trades on the Saudi Exchange (Tadawul), entered China’s renewables market with agreements to develop more that one gigawatt of projects across several provinces.
By 2030, the Public Investment Fund-controlled company aims to invest up to $30 billion in China.
As part of this strategy, the Saudi company signed joint ventures with Chinese companies to launch two renewable energy projects worth $312 million.
Gulf investors are increasingly attracted to China’s renewable sector due to its technology, pricing and overcapacity, filling a gap left by Western businesses which have been reducing their exposure to China.
UAE’s Masdar is also eyeing opportunities in China, its chief financial officer Mazin Khan told AGBI last year.
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