NF Energy
NF Energy-saving Corporation of America was listed on NASD OTCBB stock market. (Trading Symbol: NFES.OB). The Company operates its business through its wholly owned subsidiary in China, Liaoning Nengfa Weiye Energy Technology Co., Ltd., which principally focus on manufacturing energy-saving equipments and new energy facilities, contracting with energy-saving & pollution reduction Turn-Key project, and operating Energy Management Contract (EMC) projects.
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NF Energy expects to benefit from Chinese policies for energy
Chinese energy conservation specialist NF Energy Saving Corporation
(OTC: NFEC) noted the publication of a new opinion of the People's
Republic of China's State Council Plan, which defines a number of
policies for the energy service industry in China.
NF Energy
expects to directly benefit from the policies outlined by the
government, on a number of financial levels. Notably the opinion
provides incentives in relation to energy service companies (ESCOs) and
energy management contracts (EMCs).
Essentially the opinion,
referred to as the ‘Opinion on Accelerating the Implementation of Energy
Management Contract to Promote the Development of Energy Service
Industry’, outlines development goals, financial subsidies,
preferential-tax policies, accounting policies and pilot projects.
NF
Energy’s President & CEO Mr Gang Li, also acts as the Deputy
Director of the China Energy Management Companies Association (EMCA).
The EMCA participated and assisted in the preparation of the report.
"Benefiting
from the government incentive policies, there is now a new catalyst for
continued growth for energy service industry companies and ESCOs. EMCA
estimates that the energy service industry will achieve an output of
RMB80 billion in 2010 and maintain a growth rate of 30%-40%”, Gang Li
commented.
“NF Energy will continue to expand its exposure in
the energy service industry and EMC business by taking advantage of the
preferential policies released by the Chinese government”.
The
opinion consists of two phases, in Phase I the aim is to support and
cultivate a group of professional ESCOs, with a goal of establishing an
active energy service market by 2012. Later in Phase II, the opinion
aims at establishing an improved energy service system and further
expand the ESCOs. This second phase will make EMCs one of the major
approaches for Chinese energy retrofitting by 2015.
According to
NF Energy, an EMC is an effective energy service mechanism widely used
in developed countries.
Under the EMC model, ESCOs provide a
series of services such as energy auditing, financing, and retrofitting
to energy consumption companies to reduce their per unit energy
consumption and green house gas emissions. Subsequently the ESCO
generate returns by sharing energy saving benefits during the contract
period.
In terms of the financial incentives, the Chinese
government will provide financial subsidies for EMC projects, and ESCOs
will benefit from preferential tax policies. Additionally, preferential
accounting policies will also apply in relation to EMC expenditures.
Other NF Energy news
- NF Energy Saving shares down as Q4 earnings slide
2011-03-25 - NF Energy signs contract with Fuxin HF Bio-energy for energy savings project in China
2010-09-15 - NF Energy expects to increase revenue by at least 33% in 2010
2010-04-21 - NF Energy expects 2009 earnings to soar 250% as revenues climb 28%
2010-02-26 - NF Energy Saving named among Top 20 energy saving companies in China
2010-02-03
