Australian renewable energy company, CBD Energy (ASX: CBD), has disclosed to the ASX it would finalise its joint venture with two of China's largest renewable energy companies and pursue A$6-billion worth of renewable energy projects in the coming years.

The joint venture will form the AusChina Energy Group, which plans to develop renewable energy projects over eight years and become a significant participant in the Australian energy market.

CBD's partners in the joint venture are China Datang Renewable Power Co Ltd and Tianwei Baobian Electric Co Ltd. These Chinese companies are subsidiaries of China's parent companies China Datang Group, which is China's second largest utility; while, the Tianwei Group is one of the largest solar equipment producers in China. This would be the first time that the Chinese companies will be involved in a foreign venture.

This would be significant for all companies involved as Australia tries to comply with tight environmental laws.

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