Envision Energy has launched a renewables-focused strategic joint venture (JV) with Saudi Arabia’s Public Investment Fund (PIF) and Vision Industries.
According to the parties, the JV will focus on manufacturing and assembling wind turbines and components, including blades, nacelles and hubs.
As per the agreement, the Shanghai-headquartered company will hold the majority share in the JV, with Vision Industries, an investor and developer of green energy industrial projects and local supply chains, and PIF holding the remainder, comprising 10 per cent and 40 per cent, respectively.
For the latter, the agreement was entered into by the Renewable Energy Localization Company (RELC), a fully-owned PIF company.
The ceremony was attended by HE Yasir Othman Al-Rumayyan, the Governor of PIF, Lei Zhang, Chairman of Envision, and board members of Vision Industries, among others.
This move from PIF comes alongside two other JVs, including one with manufacturer Jinko Solar, aimed at localising the manufacturing of photovoltaic cells and modules for high-efficiency solar generation.
The agreement targets an annual production of 10 gigawatts (GW) generation capacity.
The JV will see RELC hold 40 per cent of the JV, with Jinko Solar holding 40 per cent and Vision Industries holding 20 per cent.
Another JV has also been formed between PIF, LUMETECH S.A. PTE. LTD, a subsidiary of TCL Zhonghuan Renewable Energy, and Vision Industries.
This deal will focus on localising the production of solar photovoltaic ingots and wafers with annual production sufficient to generate 20 GW of power.
RELC will hold 40 per cent of the JV, with LUMETECH holding 40 per cent and Vision Industries holding 20 per cent.
Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, commented: “The new agreements are part of PIF’s efforts to localize advanced technologies in the renewable sector in Saudi Arabia and meet commitments to increase the share of local content, as well as contribute to localizing the production of 75% of the components in Saudi Arabia’s renewable projects by 2030 in line with the Ministry of Energy’s National Renewable Energy Program.”