SHANGHAI, July 14 /PRNewswire-Asia/ --
-- Wuxi Zhenyu Chemical, the joint venture, is a 4-time repeat customer,
representing high customer satisfaction and recognition
-- Contract value amounts to US$0.73 million and the system will help
produce approximately 24 million kwh of electricity annually
China Energy Recovery, Inc. (OTC Bulletin Board: CGYV) (ISIN: US16943V2060; "CER"), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, today announced that the company has won a contract to design and manufacture a waste heat recovery system for the new 300,000 ton annual capacity sulfuric acid plant of Wuxi Zhenyu Chemical, a joint venture between Marubeni, a Japanese Fortune Global 500 company, and Wuxi Sulfuric Acid, a leading sulfuric acid producer in Jiangsu Province. The contract value amounts to RMB4.98 million (approximately US$0.73 million).
"We are very pleased that as a long-term, valued customer, Wuxi Zhenyu Chemical, engaged us to supply the waste heat recovery system for them for the fourth time," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "We congratulate them on their continued and fast growth. This is a representation of customer satisfaction and recognition of our product quality and leadership in the waste heat recovery field. We shall continue to further develop our waste heat recovery technologies and enhance both our engineering and production capacities to meet the increasing market needs for our systems."
The waste heat recovery system for Wuxi Zhenyu Chemical is designed to generate 45 tons of high-quality steam per hour. Once connected to the turbines, the system will help produce approximately 24 million kwh electricity annually and much of the electricity generated will be sold to the grid, thus enabling the client to significantly reduce its energy costs. This project is estimated to achieve an annual saving of roughly 21,600 tons of coal (coal equivalent) and consequently the reduction of roughly 57,500 tons of carbon dioxide emission from the burning of that coal each year.
The contract value presented above includes a 17% value added tax ("VAT") and a 10% retainage for product warranty purpose. According to US GAAP, VAT and the retainage are excluded from the current period for revenue recognition purpose and the retainage will be recognized as deferred revenue. 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 total 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
Investor Relations
Jim Blackman
Tel: +1-713-256-0369
