CREG Announces New Project with Estimated Investment of USD 80.6m
XI'AN, China, March 31, 2014 /PRNewswire-FirstCall/ -- China Recycling Energy Corp. (NASDAQ: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announces that its wholly owned subsidiary Xi'an TCH Energy Technology Co., Ltd ("Xi'an TCH" or "the Company") has entered into a framework agreement with Hebei Xuyang Coking Co., Ltd. ("Xuyang") to build Coke Dry Quenching ("CDQ") system and CDQ waste heat power generation plant ("Xuyang project"). This framework agreement is subject to CREG Board's formal approval of its final definitive agreement.
Hebei Xuyang (or "Xuyang") is a coking company with an annual output of 6 million tons of coke. Pursuant to the framework agreement, Xi'an TCH will design, build and maintain two 25MW waste heat power generation systems based on the 6 million tons of capacity of Xuyang's existing production scale to supply electricity to Xuyang. The estimated investment will be $80.6 million, and in return Xuyang will pay Xi'an TCH energy-saving service fee based on the electricity produced at $0.11/KWH. The energy-saving benefit sharing period is 20 years. Xi'an TCH will be responsible for the systems operation and management. Mr. Guohua Ku, Chairman and CEO of CREG commented, "We are very pleased to cooperate with Xuyang. With our technology and experience in industrial waste-to-energy, this project can further expand our market share and enhance our competitive strength as well as eventually lead to profitable results and overall improvement of our capability."
About Hebei Xuyang Coking Co., Ltd.
Hebei Xuyang Coking Co., Ltd. was established in October 2003. It is a new enterprise after the acquisition of Baoding Coking Plant by Xuyang Group. In September 2005, Xuyang passed the ISO9001 quality management system certification; in December 2006, Xuyang passed the ISO14001 environmental management system certification. Its production environment has achieved the national secondary standard realizing cleaner production implementation of smoke-free coal and coking. Its environmental facilities have reached the advanced level of the industry and been awarded as "Clean Production Demonstration Unit" in Baoding City.
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.
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.