ENGIE, one of the world’s energy leaders, and Ferrostaal, a leading global project developer and industrial service provider, have signed a joint development agreement to build and operate the Sainshand wind farm project, located in the Gobi Desert.
The project brings more than USD 100 million in foreign direct investment into Mongolia and is in line with the government’s objective to evolve towards a greener economy and a better environment.
With a potential reduction of more than 200,000 tons of CO2 emissions per year, the Sainshand wind farm contributes to the country’s ambitions to reduce its greenhouse gas emissions by 14 per cent.
This objective was defined by the Mongolian authorities in the Intended National Determined Contributions (INDC), as part of the Climate Change Agreement, which was negotiated at COP21 last year and which enters into force today, 4 November 2016.
The Sainshand wind farm will have a total installed capacity of 55 MW and will provide the equivalent of the electricity consumption of 130,000 people in Mongolia.
“We welcome ENGIE as a co-developer and sponsor of the Sainshand wind farm project. ENGIE brings extensive expertise in renewable energy, complementing Ferrostaal Group’s long-standing capacity of project development, financing and industrial plant construction.
In this first collaboration, we combine our knowledge and expertise in bringing sustainable solutions to Mongolia,” commented Dr. Oliver Schnorr, President of Ferrostaal Mongolia. “This project demonstrates that Mongolia welcomes private investment, from both Mongolian and foreign companies, in partnership with the public sector,” he added.
Benoît Ribesse, Chief Executive Officer of ENGIE Mongolia, said: “Mongolia’s energy system calls for new energy sources. We are committed to the country’s modernization efforts in expanding its power generation infrastructure through sustainable energy sources.
As such, we are excited to be part of the Sainshand wind farm project, which is an important step in this direction. The renewable energy sector is evolving fast. Projects based on wind or solar are not only environmentally friendly, they are also becoming more and more economically sustainable thanks to recent innovations.”
The Sainshand wind farm, located 450 km southeast of Ulaanbaatar nearby the Sainshand City, capital of Dornogobi Province, will boost the local and national economy through job creation, fiscal contributions and the supply of clean energy.
Construction is planned to start in 2017, with commissioning of the plant in the second half of 2018.