BAODING, China, June 24, 2020 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE American: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that its operating entity in China, Hebei Baoding Dongfang Paper Milling Company Limited ("Dongfang Paper"), expects to launch the construction of a combined heat and power generation project utilizing biomass technology ("Biomass CHP project") with the total construction area of 80,373 square meters which is located in its Wei County production base. The Company's biomass CHP project included in the 13th Five-Year Biomass Power Generation Program of Hebei Province has recently been approved by the Development and Reform Commission of Xingtai Municipality.
Biomass CHP, a kind of renewable energy power and heat generation, utilizes biomass resources, mainly crop straw and forestry waste. As one of the key industries encouraged and supported by the Chinese government, biomass CHP, beneficial for both the environment and economy, can alleviate energy shortage, as well as improve the environment and employment to a certain extent.
According to the plan of the Biomass CHP project, Dongfang Paper expects to construct two 75 t/h biomass boilers and two 4.5 MW back-pressure type steam turbine units, as well as auxiliary production facilities. The whole project is expected to be finished at the end of 2021. With successful operation, the project is expected to generate annual electricity output of 56.45 million kw/h, from which the Company expects to generate revenue of RMB42.9 million per year based on the biomass electricity price of RMB0.76/kwh guided by the National Development and Reform Commission. The project is also expected to generate annual heating steam of 521,100 tons, from which the Company expects to generate revenue of RMB114.64 million per year based on the heating steam's current market price of RMB220 per ton.
Mr. Zhenyong Liu, the CEO and Chairman of the Company commented, "The biomass CHP project is expected to not only provide adequate power and gas supply to the Company's tissue paper production located in Wei County Industrial Park, but also provide bio gas for production of enterprises in the Wei County Industrial Park, as well as heating steam and electricity supply for nearby residents. The construction and operation of the Biomass CHP is expected to enable us to expand to the renewable energy field and continue to diversify our offerings of products, which we believe will bring more stable revenue streams in the future."
About IT Tech Packaging, Inc.
Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE American since December 2009.
Safe Harbor Statements
This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.
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SOURCE IT Tech Packaging, Inc.