Abengoa to sell stake in China desalination project

Spain-based energy and environment technology solutions provider Abengoa will sell its shares in Qingdao BCTA Desalination, the project company created to manage the DBOOT desalination project in Qingdao, China.

The company will sell its stake in the project in the northeastern region of the country to one of its venture project partners, Qingdao Water Group, for €53m.

The desalination plant has been in operation since early 2013. It is capable of treating 100,000m³ a day of seawater through reverse osmosis technology.

The technology, design and construction of the project was undertaken by Abengoa, which currently has a 25-year operation and maintenance contract for the plant.

Abengoa currently owns 92.6% of the project company, which will be transferred to Qingdao Water Group. Both companies are now working on the definitive sales agreement and its implementation, which is expected to be completed in March.

Abengoa is likely to continue to be involved in the operation of the plant through a technical assistance contract.