The 30MW biomass power generation project was jointly developed by China Grand Forestry and the Zaoyang Municipal Government with an aim to utilize residual forest biomass to generate clean and renewable energy.
The structure of the then formal agreement and other detailed terms and conditions in respect of this possible investment will be subject to further negotiation between both parties and satisfactory results of the due diligence. Mr. Terence S T Kong, Chairman of Genesis Energy, said: ¡§The Chinese government has placed the development of new energy as its priority for this year as the nation seeks to ease its energy shortage problem while upholding its pledge for sustainability. At present, coal accounts for two-thirds of China¡¦s energy consumption, whereas new energy contributes no more than 5% of the total, indicating a huge potential to be tapped while the country gradually removes its reliance on coal.¡¨
Genesis Energy has recently moved into the waste incineration sector in China following a partnership with ZhongDe Waste Technology AG Industry, as well as the development projects of waste to power investments in Shanxi and Henan.
¡§The Chinese government has issued policies to support the development of renewable energy and to encourage the establishment of energy source forests. We consider this collaboration a good opportunity for us to further expand our new energy business arm into the biomass to energy arena. By forming a possible venture with China Grand Forestry, we can better utilize the resources and competitive advantages of each party, creating synergies as we advance further in the waste to biomass energy sector,¡¨ added 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, as well as oil and gas fields in Xun Yi and Ganquan County in Shaanxi, the PRC. Further, upon completion of a recently announced agreement, the Group will hold investments in the operation of waste incineration projects for electricity generation in Shanxi. 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, as well as other renewable sources of energy. The Group is committed to building a diversified portfolio of energy assets and operations with an aim to developing into one of the leading independent energy 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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