Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - CHINA RECYCLING ENERGY CORP | v164396_8-k.htm |
| EX-10.3 - SUPPLEMENTARY AGREEMENT TO COOPERATIVE CONTRACT - CHINA RECYCLING ENERGY CORP | v164396_ex10-3.htm |
| EX-10.2 - GAS SUPPLY CONTRACT - CHINA RECYCLING ENERGY CORP | v164396_ex10-2.htm |
| EX-10.1 - COOPERATIVE CONTRACT - CHINA RECYCLING ENERGY CORP | v164396_ex10-1.htm |
EXHIBIT 99.1
China
Recycling Energy Corp. Announces New 10-Year Energy Efficiency Build Operate
Transfer
(“BOT”)
Contract with Shenmu County Jiujiang Trading Co., Ltd.
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-
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$18.3
million top-line revenue to be recognized in Q3
2009
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Additional
$38.4 million in interest income to be recognized over the 10-year term on
a monthly basis
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Project
is expected to decrease annual coal consumption by 52,000 tons, equivalent
of 130,000 tons of CO2
emissions
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XI'AN, China, November 2, 2009
/PRNewswire-Asia-FirstCall/ -- China Recycling Energy Corp. (OTC Bulletin
Board: CREG) ('CREG' or 'the Company'), a fast-growing industrial
waste-to-energy solutions provider in China, today announced that it has
delivered to Shenmu County Jiujiang Trading Co., Ltd. (“Shenmu”) a set of
18-megawatt capacity power generating systems pursuant to a Cooperative Contract
on Coke-oven Gas Power Generation Project and a Gas Supply Contract for
Coke-oven Gas Power Generation Project. The 10-year Contracts provide that the
Company will recycle waste gas from Shenmu’s 600,000 tons per year coke
production line to generate power, which will then be sold back to Shenmu for
use in production. Shenmu agrees to supply the coke-oven gas free of charge.
Power generation and delivery of power begin in October 2009.
Under the
Contracts, Shenmu will pay to the Company “energy-saving service fees” of
approximately $473,000 per month for the life of the Contracts, as well as such
additional amount as may result from the supply of power to Shenmu in excess of
10.80 million kilowatt hours per month at the rate of .30 yuan (approximately
$.04) per kilowatt hour. The Company will subcontract a third party operator at
a cost of approximately $438,000 per year.
The
Company expects to treat the Contracts as a sale-type lease. Based on the
accounting model CREG applies regarding sale-type leasing under US GAAP, the
Company expects to recognize approximately $18.3 million in revenue at September
30, 2009 (the delivery date) with a related cost of goods sold of $14.1 million.
After the inception of the lease, CREG anticipates that it will recognize a
total amount of $38.4 million as interest income from this sale-type lease over
the 10-year term, on a monthly accumulative basis as it receives the monthly
installment payments from Shenmu.
The
Company maintains the ownership of the project throughout the term of the
Contracts, including the already completed investment, design, equipment,
construction and installation as well as the operation and maintenance of the
project. CREG agrees to pay to Shenmu 50,000 yuan (about $7,300) a year to use
the land for the power station. At the end of the 10-year term, ownership of the
systems transfers to Shenmu at no additional charge.
'This is
CREG’s first project in the coking industry, one of the most energy intensive
sectors in China.' said Mr. Guohua Ku, CEO of CREG. 'This project is expected to
reduce annual coal consumption by 52,000 tons, equivalent of 130,000 tons of
CO2
emissions. We are excited about the substantial growth in our Company as we take
on ever larger projects with waste gas-to-energy solution.'
About
China Recycling Energy Corp.
China
Recycling Energy Corp. ('CREG' or 'the Company') is based in Xi'an, China and
provides environmentally friendly waste-to-energy technologies to recycle
industrial byproducts for steel mills, cement factories and coke plants in
China. Byproducts include heat, steam, pressure, and exhaust to generate large
amounts of lower-cost electricity and reduce the need for outside electrical
sources. The Chinese government has adopted policies to encourage the use of
recycling technologies to optimize resource allocation and reduce pollution.
Currently, recycled energy represents only an estimated 1% of total energy
consumption and this renewable energy resource is viewed as a growth market due
to intensified environmental concerns and rising energy costs as the Chinese
economy continues to expand. The management and engineering teams have over 20
years of experience in industrial energy recovery in China.
For more
information about CREG, please visit http://www.creg-cn.com.
Safe
Harbor Statement
This
press release may contain certain 'forward-looking statements' relating to the
business of China Recycling Energy Corp. and its subsidiary companies. All
statements, other than statements of historical fact included herein are
'forward-looking statements.' These forward-looking statements are often
identified by the use of forward-looking terminology such as 'believes,'
'expects' or similar expressions, involve known and unknown risks and
uncertainties. Although the Company believes that the expectations reflected in
these forward-looking statements are reasonable, they do involve assumptions,
risks and uncertainties, and these expectations may prove to be incorrect.
Investors should not place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. The Company's actual
results could differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those discussed in the
Company's periodic reports that are filed with the Securities and Exchange
Commission and available on the SEC's website at http://www.sec.gov. All
forward-looking statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these factors. Other than as
required under the securities laws, the Company does not assume a duty to update
these forward-looking statements.
In
China:
Mr. Leo
Wu
Investor
Relations
China
Recycling Energy Corp.
Email:
tch@creg-cn.com
In
USA:
Mr.
Howard Gostfrand
American
Capital Ventures, Inc.
Email:
hg@amcapventures.com
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