XI'AN, China, Oct. 1, 2012 /PRNewswire-FirstCall/ -- China Recycling Energy Corp. (NASDAQ: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that the ongoing construction of its previously announced Shanxi Datong Coal Group Steel Ltd. Energy Recovery Project ("Shanxi Datong Project") is progressing according to schedule. The Company expects Shanxi Datong Project, which has 23MW of total power generation capacity, will be completed by end of 2012.
As previously announced, Xi'an TCH Energy Technology Company, a wholly owned subsidiary of China Recycling Energy Corp., signed a definite agreement with Shanxi Datong Coal Group Steel Ltd. to co-develop the Shanxi Datong Project which recycles gas and steam from groups of blast-furnaces and converter of Shanxi Datong's metal refining plants to generate power. According to the agreement, China Recycling Energy will install two 3MW Top Gas Recovery Turbine (TRT) unites, one 15MW Waste Gas Power Generation (WGPG) system and two 1MW steam power generation systems. The total investment for the project is estimated to be approximately $27.45 million (RMB 180 million), and it will generate up to 23MW of electricity annually. After all construction completed at the end of 2012, the facility will be leased back to Datong Coal Group Steel Ltd. for 30 years, and Datong will be responsible for operating the facility and pay service fee to CREG during the lease term. The service fee is based on an average of 8,000 electricity-generating hours per year and $0.05 (RMB 0.33) per kilowatt hour ("Kwh") for the first 5 years after the completion of each power generation station. For each of the leases, at the 6th year, 11th year and 21st year thereafter, the rate will be RMB 0.3 Kwh, 0.27 Kwh and 0.25 Kwh, respectively. This project is a Build and Operate (BO) project, the operation period is permanent.
Total payback period of the project is 5 years. The project is progressing smoothly at present, and it will complete by the end of 2012.
"We are very pleased that the construction of Datong project is progressing smoothly," said Mr. Ku Guohua, Chairman and Chief Executive Officer of China Recycling Energy, "It is expected to bring increased revenues and significantly enhance the overall attractiveness of our company. Datong has abundant resources and will be an important partner for CREG in waste heat electricity generation going forward."
About China Recycling Energy Corp.
China Recycling Energy Corp. (NASDAQ: CREG or "the Company") 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. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1 percent of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://www.creg-cn.com.
About Shanxi Datong Coal Group Steel Ltd.
Datong Coal Mining Group, formally known as Datong Coal Mining Administration, was established in 1949. It is located in Datong, the second largest city in Shanxi Province, which has the greatest coal deposits in China. Datong engages in the mining, processing, and sale of coal products in China and overseas. The company provides thermal coal, coal layer of low ash, low sulfur, medium volatile, and high calorific coal to the power, metallurgy, nonferrous metal, building material, and chemical industries. It also involves in the production and distribution of kaolin, as well as the construction of coal mines and coal separation factories. It is the third-largest state-owned coal mining enterprise in China, after Shenhua Group and China National Coal Group Corporation. In 2000, Datong Coal Mining Administration was reconstructed as Datong Coal Mine Group Company Limited. Datong Coal Mine Group became a company jointly owned by seven shareholders after a debt-to-equity swap in December 2005. Its subsidiary company, Datong Coal Industry Company Limited, was listed on the Shanghai Stock Exchange under the ticker (SHSE:601001) in 2006. For more information about Datong Coal Mining Group, please visit http://www.dtcoalmine.com/.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Mr. David Chong
Chief Financial Officer
China Recycling Energy Corp.
SOURCE China Recycling Energy Corp.