21 Dec 2010
Optimizes Waste Treatment Business Consolidates Its Leadership Position In The Industry
Everbright International Activates Suzhou Waste-to-energy Project Phase IIIChina Everbright International Limited ("Everbright International" or the "Group") through its subsidiary Everbright Environmental Energy (Suzhou) Limited has entered into the "Supplemental Agreement to the Concession Right Agreement for Providing Waste Processing Service in Suzhou" with Suzhou Environment and Municipal Administration Bureau, Suzhou City, Jiangsu Province, to invest and operate Suzhou Waste-to-energy Project Phase III ("Suzhou Project Phase III") under the BOT (build-operate-transfer) arrangement.
While the Group is constructing the Suzhou Project Phase III, upgrading work for Phase I and II meeting Euro II standard is also taking place, commanding a total investment of approximately RMB 660,000,000 (excluding the upgrading work for Phase I and II). The Suzhou Project Phase III will have a designed daily processing capacity of 1,500 tonnes with an expansion capacity of 500 tonnes. Preparation and construction work for the Suzhou Project Phase III will take around 24 months. The Group plans to install three 500-tonne incinerators and two 18MW generators in which the major equipment such as incinerators and automatic control system will be adopted by self-developed equipment. The Group has already invested RMB940 million in building Suzhou Project Phase I and II, which has a combined daily processing capacity of 2,050 tonnes and annual on-grid power generation capacity of 200,000,000 kWh, making it the largest waste-to-energy project under operation in the country. The total daily processing capacity of the Suzhou Project will reach 3,550 tonnes after the completion of Suzhou Project Phase III. The concession rights to operate the Suzhou Project will be extended by three years to 2032. Upgrading work for Phase I and II will be carried out with the construction of the Suzhou Project Phase III simultaneously. All gas emissions will comply with Euro II emission standards. Moreover, waste leachate will be treated according to Grade 1 standard instead of Grade 3 standard for pipeline discharge. Furthermore, the Group will comprehensively utilize blast furnace slag that would otherwise have been used as landfill. Pretreated ash will instead be used as landfill. After the completion of Suzhou Project Phase III, the Suzhou Project will become the largest and most advanced waste-to-energy plant in the PRC.
Currently, in addition to waste-to-energy power generation, the Suzhou Project has built waste leachate treatment project. The project, constructed and operated according to the country's Grade 3 standard, has a daily processing capacity of 1,000 tonnes. Gas emissions from the Suzhou Project complies with Euro I emission standards, and the emission of dioxin meets Euro II emission standards, thus far exceeding the PRC regulatory requirements and is the highest operation standard in the PRC.
Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, "With rapid economic growth and a rising population in Suzhou, the volume of waste generated from the city will be increased accordingly. In view of the smooth operation of Suzhou Project Phase I and II, both having reached full capacity, Everbright International will soon commence construction of Phase III, and further upgrade the production standard in place to meet the public's rising expectation of environmental protection. With Suzhou Project Phase III being able to share the common facilities as well as the management and operational team with Phase I and II, this will enable us to enjoy economies of scale and realize economic and social benefits as well."
Mr. Chen concluded, "The Group will further upgrade Suzhou Project Phase III comprehensively in the future based on its experience gained from the update of Suzhou Project Phase II and Jiangyin Project Phase II. The Suzhou Project Phase III, upon completion, will continue to consolidate its leading position as well as model project in the waste-to-energy industry. Upon the activation of the Suzhou Project Phase III, this will exert a positive impact on Everbright International's development as well as the waste-to-energy industry, contributing to energy saving as well as emission and pollution reduction in the PRC."