Chapter 488: Rooted in the present
"good!"
Thomas looked solemn and nodded.
"The board of directors has discussed that with such a large investment, we probably can't find a partner elsewhere. Instead of facing the pressure of oil companies elsewhere, it would be better to start from scratch in China."
"We will not make a one-time investment. The company does not have that much money in its account. Building a total of about five square kilometers of solar power stations is the limit of our funds."
"So, we plan to take it step by step, first building a five-square-kilometer solar power station and putting it into operation."
"After that, through this power station, we will find ways to obtain financing from other channels and gradually build it. This is probably our most feasible way at the moment."
The middle-aged man named Wang steadied his feet this time, looked squarely at Thomas's stubborn face, and was filled with emotion in his heart.
This is really the modern version of Yu Gong moving mountains!
When a five-square-kilometer solar power station is actually put into use, the total power generation per year is about 10 billion kilowatt-hours. If it is sold to the local power grid for 2 cents per kilowatt-hour, the gross profit will be only 2 billion yuan!
In other words, even if they don't pay taxes and invest all their profits in expansion, they will only be able to build one square kilometer of solar power stations a year at most!
How many years will it take them to achieve scale?
Mr. Wang, the representative of the Department of Energy, stared at Thomas for a long time before confirming that the other party was not joking with him, but that the board of directors of the Northern California Solar Energy Company had jointly made this decision.
But it is fair to say that the Northern California Solar Energy Company has completely offended those large financial groups. Even if they return to the United States, they will encounter unimaginable resistance.
Those big consortiums will definitely not let them go and will continue to pursue solar chip production technology from them.
They chose to stay in China and develop out of necessity.
A gross profit of RMB 2 billion is nothing to mention for an international operating company.
But in China, two billion is not a small number.
Just look at the A-shares and you will know that listed companies with profits of 2 billion have a market value of at least 40 billion and are leading companies in various places.
If the Northern California company makes up its mind to take root in China, then this modest profit will be enough for all shareholders to be very happy.
This thought quickly passed through his mind, and a smile appeared on his face: "Since your company has decided to develop in our country, of course we welcome it with both hands."
"We are vigorously promoting urbanization, and electricity consumption is always tight."
"Your company can work hand in hand with us to promote economic development. We are so grateful that it is not too late. I wonder if your company has any other requirements?"
Mr. Wang was smiling and listening.
In 2008, China's total electricity supply was around 3,433.4 billion kilowatt-hours of electricity. The Northern California Solar Energy Company's five-square-kilometer solar power station could supply up to 10 billion kilowatt-hours of electricity per year, which was far from solving the problem of the contradiction between supply and demand.
However, something is better than nothing.
These power supplies can more or less meet the power needs of some areas.
However, the other party would never go to the desolate northwest region and set up camp there.
How can they still profit from transporting electricity from the northwest to the mainland?
After much calculation, they want to maximize profits, and the best construction location is along the coast.
These places have abundant sunshine and huge annual solar radiation. They are the only places you can choose to reduce power loss.
Then their plan is...
"Mr. Wang, we want to get a piece of land first, ten square kilometers of land for us to build a solar power station."
"Moreover, we hope to be in the coastal area. According to our investigation, the coastal area is the most economically developed region in China, with strong consumption power and strong demand for electricity."
"The electricity we generate can be sold locally without having to transport it over long distances."
As he expected, Thomas spoke out bluntly, expressing the Northern California Solar Company's intention to build solar power stations along the coast.
Mr. Wang always had a smile on his face, but he was very troubled in his heart.
The southeastern coast is really in great need of power supply. Let alone a power station of five kilometers or ten kilometers, even a solar power station of two hundred or five hundred square kilometers can absorb all the electricity.
The problem is the ground!
If the Northern California Solar Energy Company chooses to locate in the Northwest, they can be granted as much land as they want.
It is a vast area with sparsely populated areas and almost no human habitation, covering millions of square kilometers of wasteland.
Even if Thomas and the others occupy one square kilometer and leave another square kilometer empty, there will be no problem at all.
But it's different along the coast.
Thomas and the others saw that the coastal areas were economically developed, and there was nothing wrong with that. It was indeed very suitable for investment.
But it is precisely because of its developed economy, proximity to the sea, and convenient transportation that foreign-funded enterprises that first came to invest in China basically chose to locate there.
Where else in the Yangtze River Delta and Pearl River Delta can there be such a large open space for Thomas and others to build a solar power station?
Of course, if you insist on saying it, it’s not completely impossible.
But those are the remaining agricultural farming areas, which were carved out from the industrial land.
It is the absolute red line for farmland!
Besides, even if there is ten square kilometers of land, it is impossible to give it to them!
Ten square kilometers is about the area of 1,428 standard football fields. What can it be used for without receiving huge returns?
Take it to a Northern California solar company, how much can they pay for this land?
Construction cost of 1.8 billion square kilometers?
1.8 billion is not even needed to pay for the purchase of this piece of land!
(One square kilometer is equal to one million square meters. The price of one square meter of land in the Pearl River Delta at that time was about 4,000-7,000. Even if calculated based on 4,000, it would be 4 billion.)
In an instant, countless thoughts flashed through Mr. Wang's mind. During this time, he kept smiling and saying some polite words.
Weigh the pros and cons clearly.
He immediately said: "On behalf of the Ministry of Energy, I welcome Mr. Thomas' investment in China. We have always spared no effort to support foreign investors, especially investments in such high-tech and energy fields."
"But in coastal areas, the problem of land tension is not a matter of a day or two."
"The phenomenon of industrial land and commercial land taking over agricultural land is very common and difficult."
"But Mr. Thomas, please rest assured that we will study it carefully and will definitely find a suitable construction land for your company to meet your company's needs for power station construction."
"Thank you so much! We don't plan to go out for fun these days. We are just waiting for Mr. Wang's good news at the hotel!" Thomas smiled at Mr. Wang with a double entendre.
Everyone has got to the point, there is no need to take them around to various scenic spots to kill time.
"Hahaha! No problem!"
Mr. Wang didn't feel embarrassed at all, he laughed and shook hands with Thomas goodbye.
When he walked out of the room, his brows furrowed.
Finding a building site for a Northern California solar company is a no-brainer.
He is also full of expectations for Thomas's statement that he will seek other financing channels internationally.
If Thomas can find investors and invest heavily in the construction of solar power stations, the country will naturally be optimistic about its success.
It would be even better if the construction scale of the entire power station could be increased tenfold to fifty or even one hundred square kilometers.
But where can they find such a large piece of wasteland that has not been developed and will not be used for other purposes?
Mr. Wang smiled bitterly and shook his head.
Chapter completed!