Pursuant to the agreement, Genesis Energy and ZhongDe Waste Technology will form a joint business development team so as to conduct technical, financial and legal due diligence on potential sustainable energy projects. Subject to the satisfactory results of the due diligence, the two parties will proceed to the negotiation for terms and conditions of a formal agreement in respect of such possible investments.
Mr. Terence S T Kong, Executive Director of Genesis Energy, remarked: ¡§Our focused efforts over the past few years to develop oil and gas businesses have begun to contribute sustained revenue and earnings streams, providing a solid platform to support a healthy pace of organic growth. Management believes the Group is prepared to actively pursue viable business opportunities in new energy sectors. Compared to conventional energy businesses, waste incineration power plant operations are less prone to demand changes and are not affected by fluctuated commodities prices. The investment in waste power will help drive the Group¡¦s business development towards a more balanced and stable portfolio in the long term.¡¨
¡§Energy recovery from waste has enormous potential in Asia. According to Asian Development Bank, the average daily output of solid waste alone from Asia¡¦s largest cities today has been estimated to be 760,000 tons, and it is expected to increase to 1.8 million tons per day by 2025. China aims to invest RMB 2 trillion by 2020 in its mid- and long-term development plan for renewable energy and it has set the target to make renewable energy account for 15% of the country's total primary energy consumption by 2020. This new venture is a landmark investment made by Genesis Energy, in a bid to tap the huge renewable energy market in China amidst government efforts to achieve sustainable development in the energy sector,¡¨ continued Mr. Kong
ZhongDe Waste Technology is a leading provider of waste incinerators for the disposal of solid medical, municipal (mixed household refuse) and industrial (including hazardous) waste. Founded in 1996, ZhongDe Waste Technology has installed more than 180 waste incinerators in 13 provinces throughout China.
¡§We look forward to capitalizing on the expertise and extensive experience of ZhongDe Waste Technology to drive the development of this new clean energy business segment, into which we will continue to commit investments over the next few years. The successful startup of operations also lays a solid foundation for future business opportunities between the two companies,¡¨ concluded Mr. Kong.
The Group currently operates oil and gas businesses in Utah and the Four Corners Area (of Colorado, New Mexico, Utah and Arizona) of the United States, and Xun Yi, Shaanxi, the PRC. Upon completion of a recently announced agreement, the Group will operate another oil field in Ganquan County, Shaanxi. The Group has also formed a strategic 50/50 joint venture with New Times Group Holdings Limited (HKEx: 166) to pursue other investment opportunities, including a possible joint venture oil and gas exploration project in Tasmania, Australia.
About Genesis Energy Issued by : Through :
Genesis Energy Holdings Limited (HKEx: 702) is an energy company with focus on oil and gas exploitation and operations. The Group is committed to building a diversified portfolio of oil and gas assets and operations with an aim to developing into one of the leading independent oil and gas businesses in Greater China. The Group currently operates oil and gas fields in the US and PRC.
Genesis Energy Holdings Limited
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