LAS VEGAS, Nov. 20 /Xinhua-PRNewswire-FirstCall/ -- China Holdings, Inc., a global diversified asset holdings company, and its subsidiaries engage in multiple China-focused business activities including energy, renewable energy, resources, utilities, finance, real estate, and pharmaceuticals, announced today the Company has executed its 3rd development contract to develop and construct its 3rd Biomass Energy Power Generation Plant with a power capacity of 50 MW through its controlled subsidiary "China Power, Inc." in cooperation with the local government in AnHui Province of the People's Republic of China. The breakthrough brings the Company's Biomass Energy Power pipeline potential power capacity to 150 MW.
All resources needed to develop and construct the 3rd 50 MW Biomass Energy Power Generation Plant such as power supplies, water supplies, straw supplies and 215 MU (1 MU = 667 sq. meters) of land have been secured with the local government. The Company has secured, and/or will have secured the Advanced Technology (CAPS-II pyrolysis system, the leading technologies of biomass energy systems in the world), Efficient Combustion Resulting in Clean Emission (CAPS-II pyrolysis system is environmentally friendly and economically profitable, in disposing of agricultural waste), and Modular Design Maximizing Flexibility, etc.
The Third Biomass Energy Power Generation Plant/Project (Power Capacity: 50MW) has very similar advantages and benefits from government policies as the Company's 1st & 2nd Biomass Energy Power Generation Plants/Projects (2 x 50 MW = 100 MW). The 3rd Biomass Energy Power Generation Plant (50MW) has the total expected annual power generating capacity of 400 million kilowatt-hour (kWh) and expected annual revenue of approximately 250 million Yuan, and expected annual net income (45% of Revenue) of approximately 112.5 million Yuan based on 8,000 annual operation hours. The sales price of electricity is RMB 0.60 Yuan/kWh (approximately USD $0.080/kWh) which is protected by a government supervision system that insures full purchase and payment through the government's Policy Protection for the purchase of electricity by biomass renewable energy. According to State Government NDRC, green electricity will have priority in sales to the state grid and large thermal power companies. The total investment for this Biomass Energy Power Generation Plant/Project. (Power Capacity: 50 MW) is also approximately RMB580 million Yuan: 35% in cash investment and 65% will be from China-based bank loans with preferred interest rates with government policy protection for the Biomass Renewable Energy Project. Approximately 70% to 85% of the construction costs through non- recourse and long-term debt financing/bank loans. This Biomass Energy Power Generation Plant will be expected to be fully operational in approximately 2 - 3 years.
The Company is also establishing longstanding strategic relationships with other power operators, financial sponsors, suppliers, subcontractors and governmental representatives that will ensure the Company's successful development of renewable power generating facilities.
The Company is developing and building up its Renewable Energy Projects & Pipeline in Biomass Energy Power Generation Plants/Projects & Hydropower Plants in hopes of reaching a total Potential Power Capacity of 1600 MW of Renewable Energy shortly via Merger & Acquisitions (M&A), Joint-Venture Partnerships with Biomass Projects & Hydropower Plants and companies, governments in China, or/and worldwide. The Company's Advanced Renewable Energy Strategy & Plan in Hydropower Plants and Biomass Energy Power Generation Plants will enhance the technical, social, and environmental benefits of Biomass Energy /hydropower and provide investment and business opportunities in the cost-competitive Biomass Energy /hydropower capacity energy supply in China as well as around the world, which will increase worldwide shareholders' value in the long term.
The Company's objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, or/and worldwide, or/and which derive a significant part of their revenue from China, or/and worldwide. For the Company's profile, please feel free to visit our website: http://www.chinaholding.net .
About China Holdings, Inc.
China Holdings, Inc. is a development stage company with the goal of becoming a diversified global assets holding company. The Company and its subsidiaries engage in multiple China-focused business activities including pharmaceutical, real estate, utilities, energy and finance. Its objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, or/and worldwide, or/and which derive a significant part of their revenue from China, or/and worldwide. The Company has two wholly-owned subsidiaries: (i) China Power, Inc., and (ii) China Health Holdings, Inc. For the Company's profile, please feel free to via website: http://www.chinaholding.net .
About China Power, Inc.
China Power Inc., a wholly owned subsidiary of China Holdings, Inc, is a development stage company with the goal of becoming a global leading energy holding corporation, that focuses on the Merger & Acquisition, investment, Research & Development, construction and operation of energy, and renewable energy, and environment protection projects in China and worldwide.
About Biomass Renewable Energy in China
Renewable Power Producers are involved in generating electricity power from renewable energy sources, such as Hydropower (Water), Wind Energy and Certain Waster Products such as Biomass. The demand on renewable energy power in the world continues growing and is largely driven by long-term trends towards stronger policies for environmental protection. The combustion of fossil fuels such as coal, oil and natural gas to generate electricity power emits greenhouse gases, and is acknowledged worldwide as a major source to global warming. For environmental protection, combined with an increase in electricity demand, lower-level growth of electricity supplies, and near all- time high energy commodity prices are enticing electricity producers and providers to diversify their mix of power generation sources to include a larger share of renewable power.
Biomass Renewable Energy: straw to energy. Straw is renewable energy and is a part of nature's plants. The carbon on the inside of the straw can change to organic carbon through absorption of carbon dioxide (CO2) from the atmosphere during photosynthesis. The biomass energy project, as an alternative and renewable energy source, is fully supported by the central government and local governments of China. The development and construction of the renewable energy project is protected by The Renewable Energy Law, created on January 1, 2006 by the People Congress of China. The Chinese central government has set a series of tax exemption/deduction regulations to encourage the construction of renewable energy projects. The National Reform and Development Committee implements the purchase electricity price for renewable energy. It ensures the standard purchase electricity price is 0.25 Yuan/kWh addition base on the local average grid connection price (0.25-0.44 Yuan/kWh). In addition, there is a supervision system to ensure full purchase and payment.
Environmental Benefits: official statistical information from the Ministry of Agriculture in May 2005 shows that the annual production of straw in China is about 650 million tons. Studies done by international energy organizations show that crop straw is a type of clean renewable energy resource. Normally the heating value of crop straw is about 15MJ/kg. Crop straw is the fourth energy resource after coal, petroleum and natural gas. Many developed countries have already used straw as raw material to generate energy. Each year China produces about 650 million tons of crop straw, which has the same energy content as 268 million tons of regular coal, about 13.7% of China coal production in 2004. By the year 2010, China will have had discarded 350-370 million tons of straw. If used to generate electrical power, it is equivalent to a 90 million KW generator running 5000 hours per year and generating 450,000 million kWh of electricity. This in return will gear the development of a greener economy and the greater sustainable economic development of China. Economic Benefits: Biomass Renewable Energy Project: take 1040TPD as a sample, the average annual electricity sales revenue of a STE project is 232 million Yuan RMB, the average annual net profit is 100 million Yuan RMB, and the average net profit rate is 43%. The economic benefit is very profound. In addition, based on the most updated data from the China CDM Information Centre, the guiding price of CO2 is 51.21 RMB/ton. Recently, considering that 0.95kg of CO2 will be discharged when 1 kWh of electrical power is generated by using mineral fuel, each 4X260TPD STE plant is estimated to have 3.31 million tons of CO2 reductions during its 10 years CO2 reduction salable operation. With a price of 51.21 RMB/ton, the 1040TPD project can have an additional income of about 170 million RMB, which is 17 million RMB per year. For the 780TPD project, the CO2 reduction is 2.48 million tons over 10 years. With a price of 51.21 RMB/ton, there will be 127 million RMB in income, which is 12.7 million RMB per year. According to China Energy Research Institute's 2006 update report, China's Biomass Energy implementation and development has reached its power capacity for 2GW in 2005. China Biomass Energy Capacity will reach a total of 5GW in 2010, and 30 GW in 2020.
For worldwide investor and media inquiries, please contact:
China Holdings, Inc.
Las Vegas and Beijing
James H. Simpson Senior Vice President /Investors Relation
And Julianna Lu
Chief Executive Officer
Tel: +86-10-6586-4770 (China)
Mobile: +86-1370-133-1287 (China)
Safe Harbor Statement: To the extent that statements in the press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company's development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward looking, all forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements, which may accompany the forward-looking statements, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the Company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. In addition, the company disclaims any obligation to update or correct any forward-looking statements in all of the Company's press releases to reflect events or circumstances after the date hereof.
|SOURCE China Holdings, Inc.|
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