Pursuant to the letter of intent, the Partnership aims to form a long-term and sustainable collaboration with the Jilin Provincial Government in the area of clean thermal treatment of municipal waste with energy recovery. The Partnership plans to invest approximately RMB5 billion over the next five years in waste-to-energy projects in several municipalities in Jilin. The preliminary plan envisages initial rollouts in Liaoyuan (遼源), Songyuan (松原), Tonghua (通化) and Baishan (白山) through the construction of municipal refuse incineration power projects, with phased developments to ultimately cover all municipalities and townships in the province.
Renewable energy projects are categorized as public utility infrastructure; the projects under consideration are expected to be operated on a BOT model with the government providing waste treatment subsidies. The extent of the subsidies will be determined on the basis of the scale of investment and operating costs involved. Preliminary estimated subsidies will range from RMB85 to RMB95 per tonne. Local governments will also provide tax and land use incentives for the Partnership. The first four municipal waste incineration power plants are expected to be completed by 2011, together with a total daily refuse handling capacity of 2,300 tonnes.
Mr. Terence Kong, Chairman of Genesis Energy, remarked at the signing ceremony: “Our strategic collaboration with Jilin Province echoes the country’s call for energy saving, pollution reduction and the development of a recycling economy. The projects will not only help the province to handle municipal waste through clean combustion treatment, but will also enable us to utilize the incineration process to generate thermal electricity and heat, as well as to convert bottom ash to use.”
The Jilin Provincial Government has designated the Provincial Development and Reform Commission as the driving division to assist the Partnership in site planning and related project preparatory work across the province. The commission will also provide support and assistance in project applications and approvals. Genesis Energy and ZhongDe Waste Technology will leverage their respective expertise and experience in the building and management of renewable energy plants. ZhongDe Waste Technology will provide required equipment and the training and supervision of operating staff. JPMorgan will provide related project financing, financial advisory and other investment banking services for the project.
Genesis Energy currently operates oil and gas businesses in Utah and the Four Corners Area (comprising parts 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. The Group is also rolling out developments of waste incineration and biomass projects for electricity generation in Shanxi and Hubei respectively. The Group has 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
Genesis Energy Holdings Limited (HKEx: 702) is an energy company with a key 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 the PRC.
About ZhongDe Waste Technology Issued by : Through :
ZhongDe Waste Technology (ZEF.GR) 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.
Genesis Energy Holdings Limited
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