Wuhan, Hubei province-based clean energy technology provider Wuhan Kaidi Electric Power has received a total of RMB3.6 billion ($580 million) investment commitment from GSR Ventures, according to a company announcement.
The investment will support Kaidi’s new energy production project located in Beihai, Guangxi Autonomous Region in Southern China. It plans to generate 60,000 tons of biological synthetic oil to be extracted from palm trees imported from Southeast Asia.
GSR will commit RMB600 million this year for the project launch, and invest an additional RMB3 billion next year for operational capital.
Founded in 2007, Shenzhen-listed Kaidi is mainly engaged in businesses related to power supply and new energies. It has built a dozen of biological power plants in the provinces of Hunan, Hubei and Anhui.
Founded in 2004, GSR Ventures primarily invests in early and growth stage technology companies in areas including semiconductor, Internet, wireless, new media and green technology. It has over US$1.3 billion asset under management currently.