Chapter 997: Energy Investment
Chapter 997: Energy Investment
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After presenting the German proposal, the team then presented their findings on Poland, the country where the third project is located.
"The project in Poland will proceed very smoothly. We only need to invest 600 million euros to acquire and upgrade existing infrastructure. Another key advantage is that the Polish authorities are willing to provide subsidies and support our application for the EU's transition fund. It is the country with the highest rate of return among the three countries."
"Is there anything to add regarding legal and compliance matters?"
Anna quickly replied, "The three projects are located in different countries, and therefore face different legal frameworks. The Spanish project is the most complex, involving approvals at the autonomous territory, national, and EU levels. The biggest challenge for the German project is environmental approval. We have already commissioned the University of Berlin to conduct an environmental and ecological assessment study, and once the project is implemented, we will try our best to keep the impact within an acceptable range."
When discussing the Polish project, Anna paused briefly, then reorganized her thoughts, saying, "The Polish project carries the highest legal risks, but it's also very transparent. Poland is undergoing energy law reforms, and it's still uncertain whether the EU will approve Poland's transition plan, which significantly impacts our investment in the project."
Huang Xiaochuan understood Anna's words: they meant that if the project was halfway through, and then suddenly environmental policies changed and the project was shut down, then all the initial investment would be wasted.
Huang Xiaochuan asked, "Have you established an exit mechanism?"
Anna seemed well-prepared: "Yes! We have included change clauses for each project. If the legal environment changes unfavorably for us, we can sell the assets to local partners at cost plus 15, or convert them into bond investments. These terms have been negotiated in multiple rounds and a memorandum of understanding has been signed."
Hearing this, Huang Xiaochuan nodded, quite satisfied with the team's preliminary work.
As the presentation drew to a close, Schmidt stepped forward again: "Mr. Huang, based on our comprehensive evaluation, our recommendations are as follows: If you are seeking high returns and have a high risk tolerance, then you may choose the solar energy project in Spain."
If you value stable cash flow and brand recognition, then a natural gas power plant project in Germany is a good option. If you want to capitalize on the energy transition opportunity and are willing to take on some risk, a project in Poland is a better choice.
At this point, he glanced at Huang Xiaochuan's expression and added, "Our suggestion is to favor the Spanish project, which has mature technology, high returns, and low geopolitical risks, and is more in line with Europe's strategic direction of shifting from traditional energy to new energy."
After he finished speaking, everyone's eyes turned to Huang Xiaochuan, who was sitting in the main seat.
Huang Xiaochuan closed the report placed in front of him without saying a word. After looking it over, he finally spoke: "A very professional report. From your report, I found that even if some assumptions are flawed, the project can still bring acceptable returns."
He pointed to the Spanish project on the screen: "This project does have good returns, but it is highly dependent on subsidy policies and grid upgrades, so there are too many variables."
He then pointed to the German project: "This project is relatively stable, but the returns are mediocre."
Finally, his finger stopped on the Polish project: "This project is the riskiest, but if successful, the rewards will be very substantial."
This left the people in the conference room somewhat confused, but no one spoke up.
At this moment, Huang Xiaochuan stood up and placed his hands on the table: "My decision is to do all three projects."
A collective gasp filled the meeting room.
Huang Xiaochuan then changed the subject: "Of course, the power plant projects in the three countries will be carried out in batches and phases, and large-scale investment will be made after they are mature."
With that, the meeting came to an end. The team's task was to refine the investment plan and bring it to fruition as soon as possible.
Huang Xiaochuan shook hands with everyone and expressed his gratitude for their effective work.
During his handshake with Schmidt, Huang Xiaochuan made a request: "Mr. Schmidt, could you please prepare a separate report analyzing how the EU and foreign countries will perform in the competition in the green technology field? Could you give it to me next week?"
"No problem, Mr. Huang!"
"Hard!"
When Huang Xiaochuan returned to his suite, it was already one o'clock in the morning.
He asked Gao Song, "Is Xuanxuan asleep?"
Gao Song glanced at his watch and nodded. "They should be asleep by now."
Huang Xiaochuan waved his hand: "You should go and rest too. Don't rush to get up tomorrow. We'll have breakfast together at 9:30."
"Okay!" Takamatsu left the room and closed the door from the outside.
Huang Xiaochuan was wide awake. He looked up at the European night sky. He was making plans. In the future, electricity will be an indispensable and important resource. He was not only investing in this area in Europe, but also in China.
Wu Duo helped him a lot in this regard. He invested in the power plant project through the domestic electrolytic aluminum project, which was a win-win situation. It not only solved the power problem of electrolytic aluminum, but also reduced the power cost by half. The surplus power could be sold to the power company.
His goal is to reach a total domestic power generation of 100 billion kilowatt-hours and a total power generation of 9 million kilowatt-hours from power plants invested overseas by 2020.
What the team members didn't know was that very little of the electricity generated by European power plants flows into the local power grid. In the future, several computing centers will be set up in Spain and Germany, and of course, several large computing centers will also appear in western China.
The next morning, Huang Xiaochuan had breakfast at the restaurant accompanied by Gao Song. Actually, breakfast could have been delivered directly to the room, but Huang Xiaochuan still wanted to go out for a walk. He had learned that the hotel had a swimming pool, so he planned to go for a swim after breakfast. He couldn't stop exercising.
Just as he was eating breakfast, Tang Ruixuan came over.
"Uncle!"
Huang Xiaochuan asked her with a smile, "Have you had breakfast?"
"I already ate, and I even went for a walk outside just now." The little girl seemed to be in a good mood.
Huang Xiaochuan was very supportive of this: "Yeah, go out and have a look around when you have time, and see if there's anything you can buy as gifts for your great-grandmother, maternal grandparents, and your parents to take back with you."
I bought it in Nice a couple of days ago.
Huang Xiaochuan nodded. This child is quite good in this respect. He always thinks about buying gifts for his elders and younger siblings when he goes out, but he never buys anything for himself.
"Uncle, if you're free, why don't you come out for a walk with me later?"
"I'm not going. I'll have breakfast and then go for a swim to warm up. You go by yourself! I'll have Gao Song arrange a car for you."
Seeing this, Tang Ruixuan had no choice but to give up: "Alright then!"
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