The $3.4 million investment came from state-owned Shanghai Chengyi New Energy Venture Capital Co., Ltd.
MONTREAL and SHANGHAI—Montreal-based gas purification and filtration equipment maker Xebec Adsorption Inc., has sold a 30 per cent stake in its wholly-owned Chinese subsidiary, Xebec Adsorption (Shanghai) Co., Ltd., for about C$3.4 million (RMB16.5 million).
The investment came from Shanghai Chengyi New Energy Venture Capital Co., Ltd., an investment subsidiary of Shanghai-based Shenergy Group.
In the course of this investment, Xebec Shanghai has been converted to a Sino-joint venture company.
Xebec makes equioment for the natural gas, field gas, biogas, helium, and hydrogen markets.
Shenergy Group is a state-owned enterprise (SOE); an energy firm solely funded and supervised by the State-Owned Assets Supervision and Administration Commission (SASAC) of the Shanghai Municipal Government. It is comprised of nine holding companies including Shenergy Co. Ltd., and Shanghai Gas (Group) Co., Ltd., as well as 15 subsidiary companies.
Shenergy Group is mainly engaged in the development and integration of power & gas infrastructure, as well as in industry, real-estate and finance activities. The 2013 total assets of Shenergy Group exceeded RMB 106 billion, and annual revenues reached RMB 31.8 billion.
Shenergy Group has a strong commitment to clean energy with existing wind and solar investments. With the investment in Xebec Shanghai, it will now have renewable natural gas technology and projects, expanding its focus and solidifying its position in clean energy.
Xebec Shanghai has been operating in China since 2008 and has continuously expanded its market share in gas dehydration and purification solutions in both China and South East Asia. Recently, Xebec started up operation of a first-ever commercial landfill gas to low-carbon-fuel plant in Northern China.
“China has the potential to convert large amounts of biogas and landfill gas into low carbon renewable natural gas which can then be utilized in a number of different applications, allowing China to move exponentially toward an ecologically sustainable society” said Dr. Peter Cheng, Xebec Adsorption general manager in Shanghai.