China Recycling Energy Corporation, a fast-growing industrial waste-to-energy provider in China, has completed delivery of a set of 18-megawatt energy efficiency generation systems to Shenmu County Jiujiang Trading Company.

Ku Guohua, chief executive of China Recycling, said the project was the company’s first venture into the coking industry, and is expected to reduce annual coal consumption by 52,000 tons.

Under the 10-year build-operate-transfer contract signed for the coke-oven gas power generation project, China Recycling will recycle waste gas from the Shenmu coke production line, which has a production capacity of 600,000 tons per year.

The waste gas, supplied free of charge by Shenmu, will be used to generate power which will then be sold back to Shenmu for use in production.

The contracts further stipulate that Shenmu will pay China Recycling $473,000 per month for the 10-year period in the form of energy-saving service fees. Power in excess of 10.80 million kilowatt hours per month will also incur additional costs at the rate of $.04 per kW/hour.

China Recycling will maintain ownership of the project throughout the term of the contracts. Ownership of the systems transfers to Shenmu at the end of the 10-year period at no additional cost.

Shenmu will also receive $7,300 a year from China Recycling in the form of land use fees for the power station.

China Recycling expects $18.3 million in revenue from the initial delivery, with an additional $38.4 million in interest income over the 10-year period.

China Recycling is a Chinese company based in Xi’an that provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts from factories and mills to generate energy. Viable byproducts include heat, steam, pressure and exhaust, which are tapped to generate large amounts of lower-cost electricity and reduce the need for outside energy sources.

Recycled energy represents an estimated 1 percent of China’s total energy consumption, and is viewed as a growth market due to rising energy costs and growing environmental concerns.






-   Karl Go