CREG Announces New Project with Estimated Investment of USD 80.6m

China Recycling Energy Corp. CREG -1.75% , a leading industrial waste-to-energy solution provider in China, today announces that its wholly owned subsidiary Xi’an TCH Energy Technology Co., Ltd (“Xi’an TCH” or “the Company”) has entered into a framework agreement with Hebei Xuyang Coking Co., Ltd. (“Xuyang”) to build Coke Dry Quenching (“CDQ”) system and CDQ waste heat power generation plant (“Xuyang project”).  This framework agreement is subject to CREG Board’s formal approval of its final definitive agreement.
Hebei Xuyang (or “Xuyang”) is a coking company with an annual output of 6 million tons of coke. Pursuant to the framework agreement, Xi’an TCH will design, build and maintain two 25MW waste heat power generation systems based on the 6 million tons of capacity of Xuyang’s existing production scale to supply electricity to Xuyang. The estimated investment will be $80.6 million, and in return Xuyang will pay Xi’an TCH energy-saving service fee based on the electricity produced at $0.11/KWH. The energy-saving benefit sharing period is 20 years. Xi’an TCH will be responsible for the systems operation and management.  Mr. Guohua Ku, Chairman and CEO of CREG commented, “We are very pleased to cooperate with Xuyang. With our technology and experience in industrial waste-to-energy, this project can further expand our market share and enhance our competitive strength as well as eventually lead to profitable results and overall improvement of our capability.”