Xinhua News Agency reported that Shenhua Group Corp. plans to build Asia’s biggest coal-fired power plant in China’s southern province of Guangxi to help reduce electricity shortages in the region.

Xinhua said in the report without citing anyone that the parent of Hong Kong-listed China Shenhua Energy Co signed an agreement with the local government to build an 8 GW plant at the port city of Beihai. Construction will take about five years.

China, the world biggest polluter, relies on coal to generate about 80% of its electricity. The plan to build the thermal station in Guangxi comes after the province suffered power shortages in recent years because drought reduced supply from hydroelectric plants.

Xinhua reported citing Shenhua Chairman Mr Zhang Xiwu that the coastal province has deep ports that will allow ships to deliver coal to the plant. Guangxi will need to build docks to receive coal delivered from Shenhua mines in Indonesia and Australia.

(Sourced from Xinhua News Agency)