XI'AN, China, Dec. 17, 2013 /PRNewswire-FirstCall/ -- China Recycling Energy Corp. (NASDAQ: CREG), a leading developer of waste energy recycling projects for power generation in China, today announced its wholly-owned subsidiary Xi'an TCH Energy Technologies Co., Ltd. ("Xi'an TCH") entered into a contract with Hebei Tangshan Rongfeng Iron & Steel Co., Ltd. (Tangshan Rongfeng) to construct a coke gas (CDQ waste heat) power generation project in the mode of BOT (build-operate- transfer).
Tangshan Rongfeng is a coking and steel rolling integrated enterprise and can produce 1.4 million tons of coke each year. Based on Rongfeng's existing production line, Xi'an TCH will construct CDQ (Coke Dry Quenching) facilities and 20MW power station to generate electricity by using waste heat from production process and reduce the emission of carbon dioxide at the same time. All electricity generated in this project will be purchased and used by Tangshan Rongfeng, Xi'an TCH is to collect energy-saving service fees according to the electricity generated.
In accordance with the contract, Xi'an TCH will invest USD 24.5 million (RMB 150 million) to construct CDQ facilities and waste heat power station. In addition to financial investment, Xi'an TCH will be responsible for construction, procurement, operation and management of power station. The operation period of this project will be 20 years during which Xi'an TCH will collect energy-saving service fees at RMB 0.582/kWh for the first ten years and RMB0.432/kWh for the second ten years; it is estimated that the annual net earnings will exceed USD 5.9 million (RMB 36 million) and total investment may be recovered within 5 years.
Mr. Ku Guohua, CREG's chairman and CEO commented, "We are excited to sign this large project after the Zhongtai waste heat power generation project we signed early this month. CDQ power generation is an innovative technology in coking industry to have waste heat reused to save energy and reduce air pollution. In recent years, the Chinese government has vigorously promoted new technology and energy-saving techniques. Coke dry quenching will replace coke wet quenching, which causes heavy pollution and is out of date. This project will expand our market share in CDQ power generation industry and increase our profit. At the same time, it will help reduce fog and haze and make more contributions to China's environmental protection."
About China Recycling Energy Corp.
China Recycling Energy Corp. (NASDAQ: CREG or "the Company") is a leading developer of waste energy recycling projects for industrial applications in China. Our waste energy recycling projects allow customers who use substantial amounts of electricity to recapture previously wasted pressure, heat, and gas from their manufacturing processes to generate electricity. We currently offer waste energy recycling systems to companies for use in iron and steel, nonferrous metal, cement, coal and petrochemical plants. We construct our projects at our customer's facility and the electricity produced is used on-site by the customer. We provide an energy-efficient solution aimed at reducing the air pollution and energy shortage problems in China. Our projects capture industrial waste energy to produce low-cost electricity, enabling industrial manufacturers to reduce their energy costs, lower their operating costs and extend the life of primary manufacturing equipment.
The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1 percent of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. Our management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://www.creg-cn.com.
About Tangshan Rongfeng Steel Co., Ltd.
Tangshan Rongfeng Steel Co., Ltd., was established in December 2003, mainly engaged in coking and rolled steel. Tangshan Rongfeng has a registered capital of USD 12 million, fixed assets of about USD 65.4 million, and employees of 800. Tangshan Rongfeng has one high-speed wire rod production line and one coking gas plant. The integral output value is about USD 1047 million, with tax of USD 49 million. The company is located in the industrial development zone of Fengnan District, Tangshan, Hebei, covering an area of about 47.3 hectares. It is close to Beijing-Shenyang highway, Tianjin-Tangshan Highway and Tangshan-Jingtang Port highway. It is 80 km away from Jingtang Port, 50 km away from Caofeidian deep water port and 60 km away from Jidong Oil Field. Its geographical location is very convenient for water and land transportation.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Mr. David Chong
Chief Financial Officer
China Recycling Energy Corp.
SOURCE China Recycling Energy Corp.
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