03 Aug 2021
Everbright Environment Secures Jiangsu Wuxi Xidong Waste-to-energy Project Phase I Through Purchase of Majority Stake in the Project Company, and Secures Xi Dong Waste-to-energy Project Phase II Based on PPP Model
3 August 2021, Hong Kong – China Everbright Environment Group Limited ("Everbright Environment" or the "Company", stock code 257.HK), is pleased to announce that the Company has recently secured Wuxi Xidong Waste-to-energy Project ("Xidong Project") Phase I through a purchase of 80% stake in and relevant shareholder's loan of Wuxi Xidong Environmental Energy Company Ltd. by Everbright Environmental Protection (China) Limited, a wholly-owned subsidiary of the Company, for a consideration of approximately RMB629 million. The Company has also secured Xidong Project Phase II based on the PPP (Public-Private-Partnership) model, with an investment of approximately RMB1.471 billion.
Everbright Environment began to operate Xidong Project Phase I by way of entrusted operation and management in November 2016. By adopting a series of measures, such as implementation of technical upgrading, optimisation of project operation and management, and enhancement of communications with the local residents, the Company effectively solved the Not-in-My-Backyard effect relating to the project, which had lasted for a while before Everbright Environment undertook operation and management of the project. As a result, Xidong Project commenced operation on its original site. With a designed daily household waste processing capacity of 2,000 tonnes and an estimated on-grid electricity generation capacity of approximately 281 million kWh per annum, Xidong Project Phase I has been operating smoothly and in compliance with relevant emission standards under the Company's operation and management.
With a concession period of 30 years, Xidong Project Phase II is designed to have a daily household waste processing capacity of 2,250 tonnes, a daily food waste processing capacity of 200 tonnes, a daily perishable waste processing capacity of 100 tonnes and a daily gutter oil treatment capacity of 30 tonnes. The project is expected to generate on-grid electricity of approximately 323 million kWh per annum. The gas emission and leachate treatment will fully comply with the relevant national standards, with the daily average level of online gas monitoring indicators superior to the Industrial Emissions Directive (2010/75/EU).
The business updates of Xidong Project not only represent an important progress of the deepened collaboration between Everbright Environment and Jiangsu Province in the field of environmental protection, but also showcases the Company's progress in continuously promoting an all-win situation for government authorities, businesses and residents. Since Everbright Environment undertook the project in 2016, Xidong Project Phase I has been operating in a safe, environmentally-friendly and stable manner, continuing to offer excellent and secured environmental services to the local communities. After Xidong Project Phase II completes construction and commences operation, Xidong Project, with a total investment of approximately RMB2.919 billion, is able to process more than 4,500 tonnes of household waste and other types of waste on a daily basis, which is estimated to generate on-grid electricity of approximately 600 million kWh per annum. This would mark significant improvements in the project's overall treatment capacity, operational efficiency and environmental contributions. In the future, the Company will develop Xidong Project Phase II into a new benchmark waste-to-energy project. By leveraging on Xidong Project, Everbright Environment aims to facilitate Wuxi City to enhance the city's integrated municipal waste end-disposal capacity through larger treatment capacity, more advanced technologies and better services, so as to improve the local living environment, as well as to proactively participate in and promote the ecological conservation progress of the city."