Suncool AB and Zhong Fa Zhan Holdings Ltd invest
Written By: Tracy Dawson Roses
July 2, 2015
Suncool AB and Zhong Fa Zhan Holdings Ltd invest in solar air conditioning joint venture
On July 2, Swedish innovation company Suncool AB and Zhong Fa Zhan Holdings Ltd. signed agreements to invest in and establish a Chinese business for the manufacturing, marketing and sales of innovative Solar Air Conditioning and heating products.
Shanghai based investment bank E. J. McKay advised Swedish firm Suncool AB and its shareholders in the transaction.
The solar thermal market in China is by far the world’s largest with more than 80% share of the global market and some 50 million m2 solar collectors sold every year. The technology exclusively acquired by ZFZ enables the manufacturing of solar collectors that cannot only produce heating and hot tap water, but also directly supply air conditioning. Target customers include hotels, hospitals and other commercial buildings as well as the residential sector and distributors of solar powered solutions.
The new operating company will be established in Yuyao (Zhejiang province) with active support from the local government. Furthermore, the new venture will receive strategic and operational advisory support from the leader of green energy in China, the China Energy Conservation and Environmental Protection Group (CECEP), through its multi-national vehicle China-UK Low Carbon Enterprise (CULCE).
The business plan for the new company, a wholly owned subsidiary of ZFZ, is to exclusively commercialize the unique solar heating and cooling technology in China, Hong Kong, Macao and Taiwan.
The Suncool technology was originally developed by ClimateWell AB, the award-winning and leading provider of sorption components. The patented technology is based on salt crystals, which can store chemical energy and convert it to heating and cooling without using any electricity or moving parts.