22 May 2016
Everbright International Secures Hubei Shayang Biomass Power Generation Project22 May 2016, Hong Kong - China Everbright International Limited ("Everbright International" or the "Group") (HKSE: 00257) is pleased to announce that it has secured the Shayang County Biomass Power Generation Project in Jingmen City, Hubei Province ("Shayang Project" or the "Project").
Shayang Project commands a total investment of approximately RMB320 million and will be constructed on a BOO (Build-Operate-Own) basis. It is designed with an annual biomass processing capacity of approximately 300,000 tonnes and is expected to generate approximately 209,300,000 kWh of green electricity annually. The Project will be equipped with a 130t/h furnace and a 30MW power generator.
Shayang County, which has abundant supplies of rice, wheat, cotton, rapeseed and peanuts, is an important production base for grains and cotton in China. The county is also rich in biomass resources, such as agricultural straw. Shayang Project will mainly process the agricultural straw in the county and the surrounding areas.
The People's Government of Hubei Province has banned the open-air burning of straw in all administrative regions in the province since 1 May 2015. To encourage the safe and hygienic treatment of this resource, the government introduced a new policy in October 2015 to provide an additional subsidy of RMB0.081/kWh for a feed-in tariff for the production of biomass power.
Mr. Chen Xiaoping, CEO of Everbright International, said, "By establishing our first project in Shayang County, an area rich in agricultural resources, Everbright International has successfully entered Hubei's environmental protection market. The local government implements supportive policies which encourage the investment and construction of biomass power generation projects, aiming to solve issues arising from the burning of agricultural straw in open areas. We will leverage Shayang Project to further expand our presence in Hubei's environmental protection market and work alongside the local government to help solve key environmental issues."