SHANGHAI, Aug. 25 -- CHINA National Offshore Oil Corp will acquire a 15.6-percent stake in a Hong Kong-listed renewable energy company as it expands in the sector.

China Power New Energy Development Co will issue 900 million new shares to a unit of CNOOC for HK$729 million (US$93.4 million), according to a statement it filed to the Hong Kong stock exchange late on Thursday.

CNOOC, China's third-largest oil and gas producer and dominant offshore oil firm, has said it would expand further in the renewable energy business like wind power in line with a state directive.

Government officials have set a target of having 10 percent of China's energy consumption supplied by renewable energy in 2010 and 16 percent in 2020 to reduce reliance on traditional fossil fuel.

Plans issue

The government plan, designed to help meet China's rising energy demand and cut emissions of greenhouse gases and pollutants, is creating a trillion-yuan market, analysts have said.

China Power said it would also issue another 400 million new shares, or 6.93 percent of its enlarged share capital, for HK$324 million, to Cheung Chung Kiu, chairman of four Hong Kong-listed companies including Yugang International Ltd and Y. T. Realty Group Ltd.

The share placement would help China Power finance its expansion and investments in the power generating projects.

China Power's business interests range from property, bakery and food to trading and energy as well as hotel management consultancy.

China Power rose 6.3 percent to close at HK$1.35 yesterday, after reaching an intraday high of HK$1.45.