The Serbian mining and energy ministry has secured a EUR2bn (USD2.18bn) investment committed by China to develop renewable energy projects in the Balkan country, as reported by Reuters on January 26. The ministry has inked an agreement with China’s Shanghai Fengling Renewable and Serbia Zijin Copper, a local subsidiary of Zijin Mining [601899: CH]. The agreement involves the construction of a 1.5-gigawatt (GW) wind farm, a 500-megawatt (MW) solar plant, and a hydrogen production facility with an annual output capacity of 30,000 tons by 2028. The green energy generated from these projects will be used in Zijin Mining’s copper mine and smelter in eastern Serbia. Shanghai Fengling Renewable will be the main investor in these projects.

The agreement marks the biggest investment to date in Serbia’s renewable energy sector. These projects will enable Zijin Mining, one of China’s largest gold manufacturers, to meet a significant part of its electricity demand sustainably. In 2018, Zijin Mining acquired a 63% stake in Serbia’s sole copper complex RTB Bor for USD1.46bn, as part of China’s multi-billion-dollar investments in Serbia under its Belt and Road Initiative (BRI). Additionally, the Serbian mining and energy ministry highlighted the planned renewable projects’ contribution to helping the country achieve energy security and independence goals, paving the way for its 2050 carbon neutrality target.

Sources:

https://www.reuters.com/business/energy/serbia-secures-22-bln-investment-china-renewable-energy-facilities-2024-01-26/

https://www.power-technology.com/news/serbia-2-18bn-renewables-investment-china/?cf-view

https://www.karanovicpartners.com/news/rtb-bor-privatisation-zijin-mining/#:~:text=Zijin%20Mining%2C%20one%20of%20China’s,return%20for%20a%2063%25%20stake.