Panda Green has secured exclusive rights to develop a RMB10 billion (US$1.41 billion), 1 GW renewables project which will feature hydrogen production, PV and photothermal power generation and energy storage, with an initial development phase leading to 500 MW of capacity.
Although light on detail, a stock market update issued by Panda Green to the Hong Kong exchange stated a memorandum of cooperation had been signed with the local government of Manasi county, in the Xinjiang Uyghur autonomous region, and the agreement will lapse if work is not begun in earnest within a year.
The few remaining non-state-owned shareholders in the developer might be forgiven for wanting to know how much was handed over to secure the project rights and, more importantly, whether any cash is refundable in the event of shovels never breaking ground, given the new owners of the bailed-out company have called in auditor KPMG to find out what happened to RMB1,022 million of deposits paid in 2017 for PV projects which were never constructed.
With that investigation in mind, the boilerplate warning to investors attached to news of the hydrogen project has probably never been more apposite.
“Subject to a number of conditions to be fulfilled, the development of the project may or may not proceed. Shareholders and potential investors of the company are advised to exercise caution when dealing in the securities of the company,” stated the standard safety notice at the foot of Friday’s update, give or take a couple of overzealous capitals.