XI'AN, China, Dec. 9, 2013 /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") has signed an EMC Contract with Xuzhou Zhongtai Energy Technology Co., Ltd. ("Zhongtai"), to develop a new Coke Dry Quenching (CDQ) waste heat power generation project.
The purpose of this contract is to invest RMB 210 million (USD 34.2 million) to build ancillary CDQ facility and a 25 MW waste heat power plant based on Zhongtai's existing industrial processes. The estimated annual net income will be in excess of RMB 40 million (USD 6.6 million) and the payback period is 5 years. The operation period of this project is 20 years. Xi'an TCH will provide the funding, construction, equipment procurement, operation and management for the power generation project; and the Company will charge energy saving service fee based on generated electricity.
Xuzhou Zhongtai Energy Technology Co., Ltd. is a key member of Xuzhou Taifa Special Steel Technology Group Co., Ltd., one of top-ten large-scale enterprises for preferential development in Xuzhou.
Mr. Guohua Ku, Chairman and CEO of CREG commented, "We are very pleased with the signing of this EMC contract with Zhongtai, which has abundant resources and will be an important partner for CREG in waste heat electricity generation in the future. It is expected to bring greater revenue growth and enhance the overall attractiveness of our company."
About China Recycling Energy Corp.
China Recycling Energy Corp. (NASDAQ: CREG or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. 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. The 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 Xuzhou Zhongtai Energy Co., Ltd.
Xuzhou Zhongtai Energy Technology Co., Ltd. was established in 2005 with designed annual production capacity of 1.2 million tons of coke, manufactures chemical products such like crude benzene, tar, etc. The company is cooperating with Hongkong Yigao Group for the LNG production by manufacturing coke oven gas.
Xuzhou Zhongtai Energy Technology Co., Ltd. invested into the construction of CS55-09 coke oven with 5.5 meters of oven chamber, dust collection device for allocating coal, crushing, delivery, removal and screening, gas purification recycling (including desulfurization process), wastewater biochemical treatment facilities, coal gas storage and distribution, recollection and coordination of crude benzene, waste heat utilization and matching public ancillary engineering. The total investment is RMB 1.036 billion yuan. It is expected that the annual production value will be RMB 2.5 billion yuan and tax achieves RMB 280 million yuan after the project is completed and put into operation.
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.