A U.K.-based company has agreed to buy a majority stake in a $9.8 billion Chinese coal plant that has the potential to be the worlds biggest coal-fired power plant.
Akaltara Power Group, which owns the coal plant in the UK’s Cumbria region, said on Tuesday it had signed a joint venture with Beijing Xinjiang Power Group to build the plant.
The Chinese state-owned group plans to build about 1,000 megawatts of coal capacity in the country, including the Cumbrian plant.
China and other countries have been struggling to curb carbon emissions, which account for about 40 percent of the world total.
But coal production is rising and the world economy is becoming increasingly dependent on imports of coal.
China, for example, has been struggling with slowing growth and a glut of cheap coal, a major reason it has been pushing through tougher environmental regulations.
A U-turn from the coal industry has led to rising prices for coal, which is a major source of carbon dioxide.
U.N. Secretary-General Antonio Guterres said last year that the world was “dying” from a lack of carbon emissions and he urged countries to act.
China’s coal industry is estimated to have grown by 15.5 percent in the first quarter of this year, as the country ramps up the production of a new type of coal, called ultra-high-pressure coal.