Hudson Clean Energy invests in China’s GSEI
Hudson Clean Energy Partners has purchased a minority stake in GSE Investment Corporation (GSEI), a Chinese company operating in the waste-to-energy and wastewater treatment space. Korean private equity player MBK Partners remains the firm’s majority owner.
Hudson's funding will be put towards several expansion and greenfield projects.
GSEI owns and operates a portfolio of 11 assets across China, supported by long-term concession agreements struck with local governments. These include the company's flagship waste-to-energy project in Beijing, which is the largest single-line plant in Asia. It has total water and wastewater treatment capacity of 800,000 tons per day and solid waste treatment capacity of 3,000 tons per day.
MBK invested in the company in December 2009 through its $1.6 billion MBK Partners II fund.
"GSEI has deployed innovative technologies and constructed a portfolio of highly strategic assets that position the company at the forefront of China's rapidly growing environmental protection industry," said Neil Auerbach, Hudson's co-managing partner, in a statement. "We are delighted to be working alongside the GSEI management team and the company's strong existing partners."
It is Hudson's debut investment in China. The New Jersey-based firm, which invests solely in companies focused on renewable power, alternative fuels and energy efficiency, opened an office in Beijing last year. Hudson expects to invest approximately $70 million from its current $1 billion global fund in China.
It also plans to raise the largest renminbi-denominated fund dedicated to green energy, to be launched in conjunction with the Yangzhou municipal government. In order to displace Green Capital Group at the top of the cleantech fund rankings, the vehicle must exceed RMB5 billion ($782.7 million).
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