China Recycling Energy Corp
China Recycling Energy Corp. 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
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China Recycling Energy in 10-yr contracts with Shenmu County coking project
China Recycling Energy Corp (OTCBB: CREG), a waste-to-energy
technologies provider specialised in recycling industrial by-products
for steel mills, cement factories and coke plants in China, said it has
delivered a set of 18-megawatt capacity power generating systems to
Shenmu County Jiujiang Trading Co Ltd as part of two 10-year contracts
between the parties.
Under the agreements, CRE will recycle
waste gas from Shenmu's 600,000 tons per year coke production line to
generate power, which will then be sold back to Shenmu for use in
production. Shenmu agrees to supply the coke-oven gas free of charge.
Power generation and delivery of power began last month.
Shenmu
will pay to the company service fees of approximately US$473,000 per
month for the life of the contracts, as well as such additional amount
as may result from the supply of power to Shenmu in excess of 10.80
million kilowatt hours per month at the rate of approximately US$.04
per kilowatt hour. The Company will subcontract a third party operator
at a cost of approximately US$438,000 per year.
CRE expects to
treat the contracts as a sale-type lease and anticipates that it will
recognize a total amount of US$38.4 million as interest income from
this sale-type lease over the 10-year term.
“This is CREG's
first project in the coking industry, one of the most energy intensive
sectors in China.” said Guohua Ku, CEO of CRE, adding: “This project is
expected to reduce annual coal consumption by 52,000 tons, equivalent
of 130,000 tons of CO2 emissions.”
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2010-01-15 - China Recycling Energy secures US$26.75 mln loan to finance Erdos power generation projects
2009-12-09 - China Recycling Energy increases full year revenues and earnings guidance
2009-11-17
