GCL’s solar projects business explains how it reduced debt in 2021 – pv magazine International

The developer last year sold 2.9GW of solar generation capacity to state-owned entities to reduce its debt load by $1.76bn and still has 298MW to sell as it reiterates plans to switch to hydrogen blue, then green.

Solar project developer GCL New Energy released annual results last year fleshing out the sale of the large project which the company says has completed a “magnificent turnaround” to become an “asset-light” business.

The project subsidiary of polysilicon maker GCL-Poly sold 2.9 GW of solar generation capacity last year, to reduce its debt by RMB 11.2 billion ($1.76 billion). That left it with a project portfolio of 1,1051 MW, the developer said yesterday, with a further 298 MW up for sale.

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The company, which sold these sections of solar projects to Chinese state-owned companies, nevertheless suffered a loss of 790 million RMB (124 million dollars) for its shareholders. This was billed as a win over the 1.37 billion RMB ($215 million) loss in 2020 and will come as no surprise after revenue fell from 5.02 billion RMB ($788 million) to 2.85 billion RMB ($447 million), a year later. year, including electricity sales which fell from 4.94 billion RMB ($775 million) in 2020 to 2.69 billion RMB ($422 million) last year.

In line with the definition of light assets, the value of GCL New Energy’s non-current assets decreased from RMB 30.8 billion ($4.83 billion) in 2020 to RMB 7.71 billion ($1.21 billion). dollars) and its current assets of 10.7 RMB. billion ($1.68 billion) to 7.42 billion RMB ($1.16 billion), with a value of 783 million RMB ($123 million) for sale. While the company’s cash halved from RMB 1.14 billion ($179 million) to RMB 586 million ($91.9 million), short-term liabilities also shrunk, from 23.5 billion RMB (3.69 billion dollars) in 2020 to 3.64 billion RMB (571 million dollars), and in particular a sharp drop in bank loans of 12.4 billion RMB (1, $95 billion) to RMB 1.08 billion ($169 million).

All this means that the current liability net worth of RMB 9.23 billion ($1.45 billion) posted in 2020 has become an asset of RMB 4.56 billion ($715 million) last year. The company’s borrowings due this year also decreased, from RMB 1.59 billion ($249 million) to RMB 352 million ($55.2 million), year-on-year.

As for the future, apart from operating and maintenance revenue from solar projects – which reached RMB 79.6 million ($12.5 million) last year, up from RMB 64.8 million. ($10.2 million) a year earlier – and engineering, procurement and construction activities worth RMB 70.3 million ($11 million), up from RMB 23.7 million ($3.72 million), GCL New Energy remains keen to become a hydrogen projects company.

Despite a failed plan to extract Ethiopian natural gas from connected company Poly-GCL Petroleum Investments Ltd, GCL New Energy said it was still considering a supply deal for the fuel, as it stressed the importance of gas-powered “blue” hydrogen as an energy carrier transition source, due to the high costs of green hydrogen powered by renewables. GCL has not yet explained what carbon capture and storage measures it will take to ensure that any hydrogen fueled with gas is blue, rather than the “grey” version of gas classified as fossil fuel.

The company at least mentioned its intention, further down the line, to provide “wind and solar hydrogen energy services, integrated with storage.”

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