XI'AN, China, March 26, 2014 /PRNewswire-FirstCall/ -- China Recycling Energy Corp. (NASDAQ: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that its subsidiary Xi'an TCH Energy Technology Co., Ltd ("Xi'an TCH" or "the Company") has signed an EMC Contract with Tangshan Baoliyuan Coking Co., Ltd. ("Baoliyuan"), to invest a Coke Dry Quenching (CDQ) waste heat power generation project using BOT method.
Baoliyuan is a steel company which mainly engages in coking and rolled steel with an annual production capacity of 1.1 million ton. Xi'an TCH will construct a coke dry quenching (CDQ) system and a 25MW waste heat power generation plant based on Baoliyuan's existing industrial flow. The company will recycle the waste heat during manufacturing process to generate electricity while reducing emissions. The generated electricity will be purchased by Baoliyuan and Xi'an TCH will charge an energy saving service fee based on generated electricity.
The purpose of this contract is to invest USD 32.6 million to build an ancillary CDQ facility and waste heat power plant. Xi'an TCH will provide funds, construction, equipment procurement, operation and management for the power generation project. The operation term is 20 years. Baoliyuan shall pay energy an saving service fee at $0.114 per kilowatt hour for the power generated from the system during the operation term. The estimated annual net income will be USD 7.63 million and the payback period is 4 years.Mr. Guohua Ku, Chairman and CEO of CREG commented, "We are very pleased with the signing of this contract. Coke Dry Quenching waste heat power generation is a revolutionary technology in the coke industry. It can reuse the waste heat while reducing emissions at the same time. The Chinese government gives strong support to environmentally-friendly technology. It is the future trend that Coke Dry Quenching will substitute the wet quenching technique. This project can expand our project portfolio, bring more profit and make a greater contribute to our environment." 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 emission and air pollution in China. Our recycling energy 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 Baoliyuan Coking Co., Ltd. Tangshan Baoliyuan Coking Co., Ltd. was founded in 2003 and located in Shaheyi Town, Qian'an City, covering an area of 300 mu, with 820 employees and annual production capacity is 1.1 million tons of coke. They have 5.5 meters coke oven, coke quenching, coal preparing, screening and cooling coke, desulfurization, thiamine, elution benzene and utilities and auxiliary project of the accessory factory, amongst which, part of indicators have reached international level of coke standard. They have their own special railway and warehousing and logistic center. Its geographical location is very convenient for water and land transportation.