Aureos backs Chinese wind energy company

The emerging market specialist has made a second investment from its China-focussed fund, citing 'clear policy support' provided by Chinese authorities for clean energy initiatives.

Aureos Capital, the London-based emerging markets private equity firm, has invested $5 million (€3.2 million) to take a stake of about 30 percent in Qingdao Land of State Power Environment Engineering, a Chinese wind energy and environmental protection company.

The investment was made from the $36.5 million Aureos China Fund.

Qingdao Land of State Power Environment Engineering produces wind energy turbines using proprietary technology, and it also engages in water-recycling and the removal of sulphur from power plant emissions. The investment will be used by the company to expand its operations.

Steve Wu, a managing partner of the Aureos China Fund, said in a statement that “as China’s industrial output and energy usage has continued to climb the demands to improve the sustainability of both have increased” and Qingdao Land of State Power Environment Engineering is in a good position to “take advantage of this trend”.

Chung Min Pang, also a managing partner of the fund, told PEO there is great support for clean energy in China and the Chinese government is taking alternative energy very seriously. The authorities are concerned about promoting clean energy initiatives both for meeting the country’s energy demands and for environmental reasons, he said.

Aureos’ investment was prompted by the “clear policy support” that made such an investment “feasible in the context of China,” Pang added.

Pang said that the Aureos China Fund has now deployed about $6.5 million in two deals and although it is looking at clean energy with great interest, it does not maintain a particular sector focus.

Aureos is currently raising three funds, namely the US$100 million Aureos Central Asia Fund, the US$300 million Aureos Latin America Fund and the US$400 million Aureos Africa Fund.