CER Sept contracts up $10M with $5M Sanning deal

China Energy Recovery won a US$5.05 million Engineering, Procurement and Construction contract for a heat recovery system for Hubei Sanning Chemical. The latter is a fertilizer and coal chemical subsidiary of Jincheng Coal Group, a top-10 coal producer and one of the 200 Largest Companies in China.

This most recent contract win follows the award of US$4.47 million EPC contract to CER from Tianjin Qinfa Chemical, a subsidiary of Tianjin Bohai Chemical Group, to construct a 200,000-ton annual capacity sulfuric acid plant with a built-in waste heat recovery system used to generate 3 megawatts of electricity and 2.8 MW of heat energy generation capacities, respectively.

The system will enable Sanning to utilise steam captured during the production process. This is equivalent to approximately 4.2MW worth of power generation capacity each year. The system will allow Sanning to reduce its coal usage by some 9,100 tons, which would otherwise be required to produce the same amount of power, and thus cut CO2 emissions by about 24,200 tons annually.

"We are very pleased to have secured two significant projects in September," Qinghuan Wu, Chairman and CEO of China Energy Recovery, said. "Added to this, we see the market for our waste energy recovery systems and engineering services continuing to grow strongly. As a result, we expect a stronger year in 2010 as we bring new manufacturing capacity online with the completion of our state-of-the-art manufacturing facility in the second half of 2010."

The contract value presented above includes a 17 percent value added tax and some minimum amount of retainage for product warranty purpose.