First Invests in Biomass Power Generation Project Expands Scope of Alternative Energy Business
China Everbright International Limited (“Everbright International” or “the Group”) has signed an investment cooperative framework agreement with the Dangshan Municipal Government in Suzhou City, Anhui Province to invest in environmental protection business in Dangshan County. The agreement covers different development areas including construction of biomass power generation projects, household waste-to-energy projects, recycling of rotten fruit and fruit residue and fruit industry recycling economic zone projects etc. And, after conducting in-depth study, the Group has decided to first invest in constructing a straw-to-energy project in the county (“the Project”).
The Project will be built in two phases. Phase I will cost RMB331,000,000 and will have two 75t/h furnaces and two 18MW electricity generators. The project, which can consume 280,000 tonnes of straw a year, will take 24 months to build (including preparatatory work and trial operation), which is expected to commerce commercial operation in 2012. In the meantime, to meet future needs, the Group intends to duly pursue Phase II development with a 75t/h straw furnace and a 18MW electricity generator planned.
Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, “The Project is the first environmental protection project of the Group in Anhui Province, which is the fourth province after Jiangsu, Shandong and Guangdong where the Group has established business presence. Dangshan is on the northern tip of Anhui Province, about 100 sq. m. from Xinyi and Suqian cities in Jiangsu, making it an important gateway to other parts of Jiangsu and Shandong Provinces. It will also produce synergistic benefits to the Group together with the Suqian and Xinyi projects being built.”
“Dangshan is a major agricultural county producing different crops and fruits. Its ample biomass resources make it ideal for straw-to-energy project development. The project meets our strategic plan for alternative energy business development and will also give us a solid base to develop other environmental protection projects in the area.” Mr. Chen added.