China Energy Recovery Confirms a $1.8 million New Waste Heat Energy Recovery System Contract from Fertilizer Leader, Dongsheng C
April 22 2009 - 7:00AM
PR Newswire (US)
- Winning two large contracts within a month demonstrates positive
impact of China's stimulus package on Company's energy efficiency
business SHANGHAI, April 22 /PRNewswire-Asia/ -- China Energy
Recovery, Inc. (OTC:CGYV) (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 secured a new contract to design and manufacture a
set of waste heat energy recovery system for Dongsheng Chemical, a
large, privately-held chemical fertilizer company in Hubei Province
in central China. The value of the contract totals RMB12 million
(approximately US$1.76 million based on the exchange rate as of the
date of this press release). This makes it the second contract
concluded within a one-month period for China Energy Recovery--the
other being with the Yangfeng Group of RMB 9.73 million
(approximately US$1.42 million) in contract value announced on
April 7, 2009. "Winning two large contracts within a one-month
period has definitely demonstrated the positive impacts that
China's recent stimulus package and the focus on clean energy
solutions are having on our business," commented Mr. Qinghuan Wu,
Chairman and CEO of China Energy Recovery. "Winning these two large
customer contracts through open bidding demonstrates the
recognition of our market leadership position in the waste heat
energy recovery field. Though there are still challenges as the
result of economic downturns in China and globally, viewing these
new contracts on an annual basis, it is anticipated the year of
2009 will continue to grow and we expect that growth will be
carried well into 2010 and beyond." The above-mentioned waste heat
energy recovery system is designed to generate 120 tons of steam
per hour. This is equivalent to nearly 24MW of heat energy
generation capacity and will enable Dongsheng Chemical to reduce
the cost of purchasing steam from outside sources needed to support
the facility operations. This project is estimated to achieve an
annual saving of roughly 52,000 tons of coal (coal equivalent),
which would otherwise be required to produce the same amount of
power, and consequently the reduction of roughly 138,000 tons of
carbon dioxide emission from the burning of that coal each year.
The contract numbers presented above are the total contract values,
which include a 17% value added tax and the retainage amounts for
product warranty purpose, which are 5% or 10% 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. For more information, please contact: Media Sean
Mahoney Tel: +1-310-867-0670 Email: Investor Relations Jim Blackman
Tel: +1-713-256-0369 Email: DATASOURCE: China Energy Recovery, Inc.
CONTACT: Media - Sean Mahoney at +1-310-867-0670 or ; Investor
Relations - Jim Blackman at +1-713-256-0369 or Web site:
http://www.chinaenergyrecovery.com/s/Home.asp
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