The listed renewable energy group CBD Energy has confirmed the ending of its involvement in the AusChina wind joint venture as it prepares to announce what could be significant write-downs in the value of its assets.
Among the assets it is reviewing are the carrying value of its Emerald and Bowen joint ventures with Buildev, a property development company linked to struggling coal magnate Nathan Tinkler. CBD said the value of these investments were being reviewed “in light of recent sales and press reports” concerning Buildev. The two joint ventures were for “sustainable” property developments, in which CBD Energy would provide the renewable energy power.
The company said it is also looking at the recognition of deferred tax assets and the carrying value of its graphite energy storage technology patents.
The asset review is required before CBD Energy can go ahead with its proposed listing on the Nasdaq stock exchange, which it plans to do after completing its merger with the US solar company Westinghouse Solar. CBD Energy says this process would likely take a further two weeks.
The AusChina venture with Chinese wind giants Datang Renewables and Tianwei was launched with great fanfare at the Sydney Opera House last year, with an ambitious to capture one-third of the local wind development market, or about $6 billion of contracts.
However, divisions over the business model appears to have caused CBD, which held a 23.75 per cent stake, to “retire” from the joint venture. CBD Energy says it will still play a role in “serving” the remaining joint venture partners “under a different business model.” It cited the case of the Taralga wind farm, which is developing with the held of Spain’s Banco Santander.
CBD Energy shares remain suspended from the stock exchange.
