(Yicai) Dec. 3 -- Two state-owned energy companies in Sichuan province are planning to merge, in a boost for China’s efforts to meet its carbon emissions targets. 

The provincial government will initiate the strategic reorganization of Sichuan Province Investment Group and Sichuan Energy Investment, according to an announcement by Chuantou Energy, a listed unit of SCIG, on Nov. 30.

The combination will create an energy group with total assets of CNY370 billion (USD51 billion).

To achieve peak carbon emissions by 2030 and carbon neutrality by 2060, local governments across China have been stepping up mergers and reorganizations in the energy sector over the past few years, aiming to improve resource allocation efficiency and promote clean energy.

In the last two years, several regions, including Guizhou, Xinjiang, Guangxi, Heilongjiang, and Hunan, have established provincial-level energy groups.

SCIG and SCEI are both state asset management companies set up by the Sichuan government. SCIG owns the largest power facilities in the province, with an installed capacity of 44 million kilowatts, accounting for about 35 percent of the provincial total, along with about 11.5 million kilowatts from projects under construction.

SCEI is in the power and chemicals industries, with a focus on clean energy, green materials, and advanced manufacturing.

As of the end of last year, SCIG had assets of CNY110 billion (USD15 billion), with annual revenue exceeding CNY15 billion (USD2.06 billion) and a workforce of around 11,000. SCEI had assets of CNY260 billion (USD35.7 billion), generating nearly CNY100 billion (USD13.7 billion) in revenue, and about 23,000 staff.

According to their development goals, by the end of 2025, the total assets of SCIG and SCEI are expected to reach CNY150 billion (USD20.6 billion) and CNY400 billion (USD55 billion), respectively, resulting in a combined CNY550 billion (USD75.5 billion) for the merged entity.

Editors: Dou Shicong, Tom Litting