Sustainable Development Capital and AVIC UK collaborate on $200m UK China energy fund

Sustainable Development Capital LLP Asia (SDCL Asia) and AVIC UK launched a landmark collaboration on Wednesday, to work together on key energy projects as part of a US$200 million UK China Energy Efficiency Investment Fund.

The partnership will see the companies co-invest in projects with specialist technology solutions that reduce energy demand and costs, and will result in significant greenhouse gas (GHG) emissions reduction.

A signing ceremony for the partnership was held at the Bank of China’s offices in London on Wednesday and attendees included the Chinese Ambassador to the UK, Xiaming Liu (standing middle); Minister of State at the Department of Energy & Climate Change (DECC), Greg Barker (pictured standing second left); Crispin Simon (pictured below left), CEO of UK Trade & Investment; and Wenjian Fang (pictured far left), General Manager at the Bank of China.

Speaking at the ceremony, the Chinese Ambassador praised the collaboration saying “it fully reflects the thriving cooperation between China and Britain in the energy sector…we also have extensive cooperation in PV, wind farm and tidal power.”

Chief Executive Officer of Sustainable Development Capital LLP (SDCL), Jonathan Maxwell (pictured seated left), also addressed the delegates, commenting: “China’s industrial base and also its retail, commercial and health-care assets offer an enormous opportunity for energy savings.”

He continued; “Our collaboration with AVIC is a potentially transformative opportunity to partner with a major Chinese company and the Chinese government to address one of the fastest growing sectors of the world energy markets. Energy efficiency has the potential to make a major contribution to a more cost effective, productive, resilient, resource efficient and lower carbon economy.”

Mike Lou (pictured seated right), Chief Executive Officerof AVIC UK, said: “By diversifying into renewable and energy efficiency business, AVIC can broaden our view to “thinking out of box, going beyond commerce” strategy and help people both in UK and China. Getting sustainable development for our future generations is part of our dream.”

SDCL and AVIC are seeking to bring the best of UK and international technologies and services to China and, with this being complimented by the expertise and skills of Chinese partners, the initiative is expected to produce impressive results.

The collaboration, including the UK China Fund, is expected to involve an overall investment programme of approximately US$200 million in the next 2-3 years.

SDCL Asia is the dedicated Asian investment and financial advisory arm of SDCL and is a joint venture with the First Eastern investment Group, a specialist in direct investment in China.

SDCL manages and advises government backed energy efficiency investment funds in the UK, the Republic of Ireland and Singapore.

AVIC Renewables, represented by AVIC UK, is the dedicated renewable energy and energy efficiency investments arm of AVIC International, one of the largest state owned enterprises in China, with industrial scale interests in the aerospace, manufacturing, real estate and energy infrastructure sectors. It has a dedicated energy management business and a focus on renewable energy and energy efficiency investment, both in China and overseas.