Siemens has signed a memorandum of understanding (MoU) for a strategic co-operation with Chinese utility Huaneng Power International covering several energy technologies – including wind power.
The MoU also includes Shanghai Electric Group, with which Siemens formed two wind-power equipment joint ventures in China in late 2011.
Siemens said the co-operation pact will cover advanced gas turbine and steam power plant technology, modernisation and upgrade of steam turbine units and wind power.
But when asked by Recharge Siemens did not disclose details of the co-operation in wind envisaged, pointing to a confidentiality clause in the agreement.
Western wind turbine manufacturers have met great difficulties in penetrating the huge Chinese wind market over recent years.
Having a big local utility such as Huaneng Power as a strategic partner may be instrumental for Siemens to gain market share through its JVs with Shanghai Electric. Huaneng Power owns power plants in 19 Chinese provinces and has a wholly-owned power company in Singapore.
“We can look back on a long and successful partnership with China. The strategic agreement with Huaneng Power International is a next step, which further underlines our relationship,” says Siemens chief executive Joe Kaeser.
“Together with our strategic partner Shanghai Electric, we are looking forward to elevating our cooperation with Huaneng to a whole new level.”
The MoU was signed in Berlin today by the three companies in the presence of Chinese President Xi Jin Ping and German Chancellor Angela Merkel.