First Minister Alex Salmond today welcomed the conclusion of a $10 million licensing agreement between a Sino-Scots company and a Scotland based engineering firm on processing domestic waste into energy.
The deal could see a minimum of $600 million worth of business coming to Scotland over ten years. Confirmation of the deal came as Chinese Vice Premier Li Keqiang and his delegation of six Ministers arrived in Edinburgh for the first day of a state visit.
The agreement between Shanghai Huanuan Boiler and Vessel Co/Cochran and Scotland based engineering company, W2E Engineering Ltd Scotland, means that technology pioneered in Scotland will be introduced into China with the building of a renewable energy conversion plant.
The Chinese delegation also attended a presentation on Scotland’s rapidly growing offshore renewable industry and visited Pelamis Wave Power in Edinburgh.
The events aim to showcase Scotland’s world-leading wind and marine energy technology developers and manufacturers, and the economic opportunities our renewable energy industry presents for potential investors across the world.
W2E, who specialise in generating electricity from domestic refuse by gasification, signed a licensing and manufacturing agreement with SHBV/Cochran that plans to provide SHBV/Cochran with a minimum $60 million of business per year for the next 10 years. This work will be carried out in Annan, Dumfriesshire, and a new facility will be by SHBV in China.
Welcoming the deal Scotland’s First Minister Alex Salmond said:
“This announcement positions SHBV/Cochran as a global leader in providing the technological know-how to support green energy developments with major expansion potential in China and elsewhere. This agreement with W2E will now result in a working partnership to fulfil alternative energy solutions that are sustainable, renewable and environmentally proven.
“SHBV/Cochran intend to build green power stations using this technology both in Scotland and in China. While China will benefit from improved waste management, green power and the direct manufacturing jobs in building the equipment and constructing and operating the plant, the Annan plant will benefit from undertaking the R&D, engineering and project management. This can then be applied to future green energy plants in UK, China and worldwide, potentially making Annan a centre of excellence for this technology.
“A number of Scottish energy companies, such as the Glasgow based Sgurr Energy, have already entered the Chinese market and this visit will help to showcase the innovation and skills that Scotland’s green energy sector offers potential investors.
“China already has the largest deployment of on-shore renewable technology, and Scotland is a world-leader in pioneering the technology and application of clean, green energy. This announcement is another positive step forward in strengthening Sino-Scottish links and confirming Scotland’s reputation as a global leader in the development of renewable energy.”
Shanghai Huanuan Boiler and Vessel Co Chairman Mr Dong Ping said:
“Contributing to environmental protection is the duty of every citizen and the conclusion of this 10m USD deal will introduce this world class technology from Scotland into China. This agreement will see the creation of new green power stations built in Scotland and in China and this will generate sustainable renewable energy at a reduced cost for our global customers.”