• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

China Energy Recovery Secures a $1.4 million Contract for Waste Heat Recovery Systems for Hubei Yangfeng Group

Posted on: Tuesday, 7 April 2009, 06:00 CDT

SHANGHAI, April 7 /PRNewswire-Asia/ -- 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 it has entered into a contract to design and manufacture two sets of waste heat recovery systems for Hubei Yangfeng Group ("Yangfeng Group"), a top 3 phosphate fertilizer producer in China. China is the largest producer and the largest market for phosphate fertilizer, one of the main fertilizers used for agriculture, in the world. The value of the contract amounts to RMB9.73 million (approximately US$1.42 million based on the exchange rate as of date of this press release).

The two sets of waste heat recovery systems for Yangfeng Group are designed to generate 120 tons of steam per hour. This is equivalent to nearly 24MW of heat energy generation capacity and will enable Yangfeng Group to reduce the cost of purchasing steam from outside sources needed to support the facility operations. In total, this project is expected to achieve an annual saving of roughly 57,100 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and consequently the reduction of roughly 151,700 tons of carbon dioxide emission from the burning of that coal each year.

"We are honored that Yangfeng Group has chosen to return to China Energy Recovery for additional sets of our waste heat recovery systems for its facility expansion," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "Yangfeng Group is a very good example of the positive impact of China's recent stimulus package on our business. Since March, we have seen an upward trend of inquiries regarding our systems and services and more industrial companies in the segments we are focusing on have started or plan to start new bidding campaigns or resume previously suspended ones for their facility expansions. With our unique positioning in the market and our strong and specialized design and engineering capabilities, we expect this upward trend will bring us a stronger order flow in the second half of this year and thus ensure an enhanced growth in 2010."

The number presented above is the total contract value, which includes a 17% value added tax and the retainage amount for product warranty purpose, which is 5% of the total contract values and will be recognized as deferred revenues. 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 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.

SOURCE China Energy Recovery, Inc.

Source: PR Newswire

More News in this Category