China National Machinery Industry Corporation (Sinomach) and General Electric Co (GE) signed a Memorandum of Understanding (MOU) on promoting African clean energy projects in Beijing on Sept 16.

The two companies will join hands with the goal of doubling the population having access to electricity to the south of Africa’s Sahara Desert, in support of China’s Belt and Road Initiative and the “Power Africa” plan of the United States. According to the MOU, Sinomach and GE agree to jointly develop, invest in and finance African clean energy projects. The companies will assist each other in receiving long-term financing from relevant countries and provide development funds if necessary.

In addition, they selected the 102-megawatt Kipeto wind power project in Kenya as a trial model for future cooperation. The signpost of China’s Belt and Road Initiative in Africa, Kenya has become a strategic crossroad for China and the United States. African countries have growing requirements for clean energy for their economic development, and in Kenya, electricity is still unavailable to 80 percent of the population.

The country plans to realize a 2,036-megawatt installed capacity from wind power by 2030. Sinomach will offer project contracting for the Kipeto project, which is expected to significantly boost Kenya’s energy supply. GE will provide draught fans, power generators, fittings, technical support and training.

Sinomach and GE sign MOU on African clean energy projects in Beijing on Sept 16.

Sinomach Chairman Ren Hongbin said that, “The company is expanding cooperation with GE to conduct electrical power construction for Africa and other emerging markets. That’s a new mode for the Chinese and American companies to explore the third side market based on mutual benefit.”

Sinomach is a top enterprise of China’s machinery industry and GE is a giant diversified corporation. They have jointly constructed several infrastructure projects in Asia, Africa and Latin Amercia, with total completed funding surpassing $ 3 billion. GE’s gas turbines, wind power generators and other advanced equipment, together with Sinomach’s project construction and management capacity, guarantee the success of those clean energy projects worldwide.

GE will provide Sinomach and other overseas Chinese project contracting enterprises with advanced technology, global resources and management experience, said Rachel Duan, president and CEO of GE Greater China Group. Through complementary technology and capacity, more companies from the two countries are expected to join in globalization and practise innovative cooperation, she added.

The two leaders also exchanged views on how to advance science and technology and innovative, methods under the global economic recession.

Yang Dan, vice-president of GE, Xie Biao, vice president of Sinomach and other department leaders of the two companies also attended the meeting.