China engineers energy merger in pollution battle
State aims to improve electricity supply and efficiency by linking Beijing Energy and Jingmei
The mainland has merged Beijing Energy Investment Holding and Jingmei Group into a 200 billion yuan (HK$249.3 billion) business, in line with its policy to improve efficiency in the energy industry and reduce pollution.
The merger of Beijing Energy and Jingmei, a coal supplier based in the capital, would improve electricity supply, Lin Fusheng, the head of Beijing's Assets Supervision and Administration Commission, said in a report by Xinhua yesterday.
The merger took place on Sunday, said Beijing Energy, which invests in electricity projects.
The new company, Beijing Energy Group, would manage coal-fired power plants, renewable-energy projects, heating supply and coal mine development, Xinhua reported.
"This is in line with a national scheme to combine coal, power and heating resources to boost energy efficiency and cut pollution," said Tian Miao, an analyst with researcher North Square Blue Oak.
The mainland, the world's biggest energy consumer, has said it will fight pollution amid record smog levels in cities, including Beijing and Shanghai, mostly from coal-fired power plants.