Shares of Chinese asset management company Haide Capital Management jumped after the firm said it will seek business opportunities via a new long-term energy storage technology.
Haide’s stock price [SHE: 000567] surged as much as 6.6 percent in earlier trading, it closed up 2.40 percent to CNY17.10 (USD2.69), while Shenzhen market’s benchmark index closed down 1.60 percent today.
The firm penned a cooperation agreement with Hubei province-based Zhongfan Vanadium Energy Storage Technology and CAS Investment Management, an affiliate of the Chinese Academy of Sciences, to promote the industrial development of vanadium redox flow batteries, the Hainan province-headquartered investor said in a statement yesterday evening.
The vanadium battery is a new type of energy storage system that could smooth the power output of renewable power systems such as wind farm and solar power plant. The technology is also slated to replace the pumped storage power stations, which are used to balance the peak and valley period of the grid operation, as its technology would become more mature in the future.
The three above-mentioned companies will set up a joint venture to advance their pursuits, including buy more vanadium mine assets, as well as the construction of Hubei province’s first over 100-megawatt vanadium energy storage power station and an ancillary production line of 30,000 tons high-purity electrolytes per year, according to the agreement.
The joint venture also plans to engage in new adventures such as high purity vanadium refinery and vanadium based new materials development projects.
Zhongfan, which own vanadium mine assets, and is the EPC contractor of the above mentioned vanadium energy storage power station project, is slated to become the JV’s controlling shareholder. Haide, a key shareholder, will assist the JV in acquiring mine resources and market expansion. CAS will mainly help the JV with new technology development. The JV’s financial terms were not disclosed.
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