China's largest aquatic feed manufacturer, Tongwei
Group, has set up a CNY 800 million ($115m) solar power joint venture,
accelerating its plan to integrate solar power generation and aquaculture in
China.
Based in Lijiang, Yunnan Province, Southwest China, the joint venture aims to
produce 5GW worth of advanced monocrystalline photovoltaic panels annually.
The idea is to install photovoltaic panels on top of fish ponds which use
Tongwei's PRAS (partial recirculation aquaculture system) systems, reducing
electricity costs and exploiting unused space amidst increasing cost of land.
Underneath the panels farmers will be able to cultivate silver carp and
bigmouth carp, which are at home in dark environments.
Open sections of ponds using the PRAS system will be used to cultivate other
fish species, such as shrimp.
Speaking with Fish First, a Chinese trade magazine, Tongwei's new CEO Guo
Yizhong said integrating solar power with aquaculture would be a "new
industrial model" for the company.
Tongwei is already one of the biggest feed firms in China and partner of Danish
aquatic feed company BioMar.
Electricity used to power oxygenation machines counts as one of the four
biggest input costs for aquaculture farmers in China, along with costs of feed,
fish fry and land rental, said Guo.
"Traditional [fish] ponds require 0.75kw per mu to power oxygenation
machines. Based on production of 1.5t per mu, this equals CNY 0.80-1.00 per
kilogram of fish," he said. Based on this, electricity costs of a standard
pond of around 10 m (6670m2) can be up to CNY15,000 annually.
Tongwei's PRAS system already reduces electricity costs by 50%. With the solar
panels integrated into the system, electricity costs will easily be covered,
while excess power could be sold back to the grid, said Guo.
With Tongwei's huge distribution network, it is well placed to promote the
solar powered PRAS to aquaculture farmers. However, Guo said that the scheme
will still take some time to develop.
"Compared with our traditional business model selling aquatic feed, solar
requires a completely new industrial model. 2016 was a year of establishing the
fish and solar integration model. In terms of capacity, we basically achieved
our targets.
"Operations management still requires some time. It probably won't be
until this year or next year before we see the results. But we have invested a
huge amount of effort to explore the idea and refine it," he said.
The joint venture will formally be established within the next two months.
Tongwei will invest CNY 120m in the joint venture with three Chinese solar
power companies raising the rest of the funds, according to Tongwei's company
filing at the Shenzhen Stock Exchange. By teaming up with three solar power
companies, Tongwei will tap China's fast-developing solar power industry, which
is by some distance the world's largest.
Sources: SeafoodSource & UndercurrentNews
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