September 08, 2009 China Energy Recovery Wins an EPC Contract for a New Sulfuric Acid Plant with Built-in Waste Heat Recovery System
SHANGHAI, September 8, 2009 /PRNewswire-Asia/
Contract value amounts to $4.47 million
The new plant will have a designed electricity generation capacity of 3MW
The built-in waste heat recovery system is expected to reduce 33,000 tons of CO2 emission annually
China Energy Recovery, Inc. (OTC Bulletin Board: CGYV) (ISIN: US16943V2060; "CER"), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, today announced that the company has won a new EPC (Engineering, Procurement and Construction) contract to construct a sulfuric acid plant with built-in waste heat recovery system for Tianjin Qinfa Chemical ("Qinfa"), a subsidiary of Tianjin Bohai Chemical Group, a leading chemical producer and one of the 200 Largest Companies in China. The total contract value amounts to RMB 30.5 million (approximately $4.47 million).
The new plant will be designed to produce 200,000 tons of sulfuric acid annually and generate 29 tons of steam per hour from waste heat energy captured during production. Part of the steam will be used to generate electricity, with a 3MW generation capacity, and the rest will be utilized directly. The utilization of the remaining steam can be translated into roughly another 2.8MW worth of power generation capacity.
This EPC project will enable Qinfa to execute its strategy to expand its production capacity while improving energy efficiency, thus reducing energy costs, and meeting environmental requirements. It is expected to be completed around next May. With the built-in waste heat recovery system, the new plant is expected to achieve an annual saving of roughly 12,500 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and the reduction of roughly 33,000 tons of carbon dioxide emissions each year.
"This is a good example of the recent developments in Chinese industries as a result of China's economic stimulus package since late last year," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "We have seen that industrial companies in China are resuming their expansion plans and at the same time are paying more attention to energy efficiency and environmental issues in order to achieve sustained growth. We are also glad to see that more and more customers have recognized our strong engineering capabilities and been willing to engage us to undertake EPC projects for them. This is expected to be a growth area for the company in the years to come."
The contract value presented above includes a 17% value added tax ("VAT") and a 2% retainage for product warranty purposes. According to US GAAP, VAT and the retainage are excluded from the current period for revenue recognition purposes and the retainage will be recognized as deferred revenue. The numbers presented represent values based on current exchange rates. Changes in the currency exchange rates would result in a commensurate change in contract value.
What is Waste Heat Energy Recovery?
Industrial facilities release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering vast amounts of that wasted energy and converting it into usable heat energy or electricity, dramatically lowering energy costs. Energy recovery systems are also capable of lowering heat pollution and capturing harmful pollutants that would otherwise be released into the environment. It is estimated that if energy currently wasted by all the U.S. industrial facilities could be recovered, it could produce power equivalent to 20% of U.S. electricity generation capacity without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.
About China Energy Recovery, Inc.
CER is an international leader in designing, manufacturing and installing waste heat energy recovery systems which provide facilities with greater energy efficiency. The company's primary focus is on the Chinese market. CER's technology captures industrial waste energy to produce low-cost electrical power, enabling industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate sellable emissions credits. CER has deployed its systems throughout China and in such international markets as Egypt, Korea, Vietnam and Malaysia. CER focuses on numerous industries in which a rapid payback on invested capital is achieved by its customers, including: chemical, paper manufacturing, refining (including methanol refining), etc. CER continues to invest in R&D and plans to build China's first state-of-the-art energy recovery system research and fabrication facility to allow it to meet the increased demand for its products and services. For more information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp . Information on CER's website does not comprise a part of this press release.
Forward-Looking Statement Disclaimer
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that CER believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, CER's ability to execute on its business plan and strategies and CER's ability to successfully complete orders and collect revenues therefrom. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's filings with the Securities and Exchange Commission, including CER's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2009.
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SOURCE: China Energy Recovery, Inc.
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