(Bloomberg) -- Saudi Arabia and China’s second-largest wind turbine manufacturer are close to a deal to develop a new plant in the oil-rich desert kingdom to help support its goal of boosting renewable power production.
The Saudi sovereign wealth fund and Vision Industries, a privately owned renewable-energy manufacturing company, could sign an agreement with Envision Energy Co. as soon as this week, according to people familiar with the matter.
The deal would involve the Public Investment Fund, which controls nearly $1 trillion of assets, and the two other partners building a wind turbine manufacturing plant in Saudi Arabia as part of the kingdom’s efforts to localize supply chains, according to the people. Envision is expected to be the majority investor in the partnership, they said, declining to be named discussing confidential information.
The PIF and Vision Industries didn’t immediately respond to requests for comment, while Envision declined to comment.
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Envision already has significant business in Saudi Arabia, which is investing billions of dollars in renewables to stop burning oil for power. The Chinese firm supplies wind turbines for the almost $9 billion Neom Green Hydrogen Co., which will use 4 gigawatts of solar and wind power to create clean hydrogen.
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