- Completion: Fuel Analysis and Feasibility Study
- Total Power Capacity: 100MW = 4 X 25MW
- Agriculture Waste to Energy
BEIJING and LAS VEGAS, May 21 /Xinhua-PRNewswire-FirstCall/ -- China Holdings, Inc. (OTC Bulletin Board: CHHL), a global diversified asset holdings company, and its subsidiaries that engage in multiple China-focused business activities including energy, renewable energy, resources, utilities, finance, real estate, and pharmaceuticals, today announced the development on TaiHu and Ongniute Biomass Power Plants/projects as follows:
China Holdings and its wholly owned subsidiary: China Power, Inc.
(''the Company'') have completed:
-- The fuel analysis for its TaiHu Biomass Power Plant/Project (50MW)
-- The fuel analysis for its Ongniute Biomass Power Plant/Project (50MW)
-- The feasibility study for its TaiHu Biomass Power Plant/Project (50MW)
The Company also confirms that its projects, operations and development were not adversely affected by the recent earthquake in Sichuan province of China. The Company has deep sympathy for those affected by this recent tragic event in China. We pray for those people who have died as a result of this tragic occurrence. We do our best to assist those who are impacted by such destructive forces.
Summary of Feasibility Study - TAIHU BIOMASS POWER PLANT
The Company's TaiHu biomass waste to energy power plant/project
(2x25=50MW), located in Anhui Province, PR China, uses biomass waste from
agriculture and forestry, like rice straw, bush and quitch as fuels for
electricity power generation. To implement the China national renewable
energy policy, using biomass waste to produce power generation, making
rational use of agricultural waste and forestry waste resources, and
developing local rich biomass energy, environmental protection and the
promotion of local economic development, the Company took a wide Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance or achievements. The Company has
no obligation to update these forward-looking statements. 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; government policies, 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.
For worldwide investor and media inquiries, please contact:
China Holdings Inc. (Las Vegas and Beijing)
Julianna Lu, Chief Executive Officer
Tel: +86-1370-133-1287; +86-10-6586-4770
Wall Street Reporter, Inc. (New York)
Jack Marks, CEO & Publisher
Tel: +1-212-363-2600 x260
Biomass Waste Fuel Supply in Taihu
Taihu County, rich in biomass resources, is the commodity grain base county in China. Taihu County has rice cultivation area of 33,700 hectares, with an annual output of 255,000 tons of rice straw, cotton cultivation area of 3,300 hectares, with an annual output of 156,000 tons of cotton stalk, wheat cultivation area of 5,700 hectares, with an annual output of 26,000 tons of wheat straw, and rapeseed cultivation area of 13,700 hectares, with an annual output of 306,000 tons of rapeseed stalk. Taihu County has forestry land area of 105,600 hectares, with the annual forest waste of the bushes of fruit trees and shrubs of about 570,000 tons, and, of quitch, about 400,000 tons. The total biomass waste material is over 1.7 millions tons.
The Company's TaiHu biomass waste to energy power plant/project's capacity is planed as 50 MW using agricultural waste and forestry waste as plant fuels. The average heat value of agricultural waste and forestry waste is 13064 kJ/kg. The project will install four CAPS-II/310MT gasification systems. Each system will dispose of 310 tons per day of agricultural and forestry waste. Each system will be running at full capacity for 7920 hours per year. The total annual fuel consumption of the project is 409,200 tons of agricultural and forestry waste.
The Company will also lease 13,000 hectares of land as the fuel supply reserve base of the power plant.
To ensure this agricultural waste and forestry waste supply to the power plant, the Company will set up 8 satellites collection stations to collect and store agricultural waste and forestry waste and keep the power plant safely in continuous operation.
''Controlled Air Pyrolysis System'' (CAPS)
CAPS is the Company's biomass waste power generation system that employs two cycles to improve overall efficiency. CAPS is a modular system with two chambers for the controlled air pyrolysis/gasification process; a primary chamber for gasifying and a secondary chamber for oxidizing. The enhanced capability to control the conditions within these two chambers is the basis for the excellent performance of CAPS compared to traditional combustion systems. This result in the complete disposal of solid biomass waste coupled with substantially less pollution.
Overall, CAPS further takes the process of biomass power generation to
new heights of efficiency by the level of design of the chambers, their
dimensions and the level of fine-tuning of the entire biomass waste
pyrolysis process. The advantages of the Company's CAPS system include:
1. Efficiency - The CAPS plant achieves around 86% efficiency, through
the fine-tuning of the combustion cycle to suit the type of straw or
biomass being burnt. This compares to around 60% for traditional
2. Utilization - The CAPS plant will require less maintenance and last
longer as a result of operating at lower temperatures than the
traditional systems, i.e. a CAPS plant operates at between 600 and
900 degrees Celsius whilst traditional combustion systems operate at
between 1100 and 1200 degrees Celsius. There is also less fly ash with
CAPS due to the enhanced control of the process. This means that a CAPS
plant can run continuously for around 8000 hours (around 11 months)
whereas the traditional IGCC Plant can only provide around 9 months of
3. Other advantages of CAPS-
a) Requires only a relatively small construction area compared to
traditional power plants.
b) Clean emissions (zero secondary pollution).
c) High automation
TiaHu Biomass Energy Project's Potential Profitability
Government Policy Supports The Central Chinese Government, provincial and local municipal governments have enacted new legislation and brought in new regulations for both the effective disposal of agricultural and forestry waste and the efficient use of renewable energy resources, such as crop straw and bush. Under the recently introduced legislation and regulations, State owned electricity grids now must purchase all electricity produced by renewable energy projects. The purchase price is also 0.25 RMB/yuan higher than the normal electricity sale price for coal-fired power plants. This new legislation and the new regulations have therefore made it both possible and profitable for private investment in the biomass waste to energy projects.
In general, a build, own and operate (BOO) model will be implemented for biomass waste to energy projects. The municipal government will allow China Holdings/China Power to build, own and operate the facility for over 30 years, with additional renewable terms/years.
Below are details of the characteristics of the China Holdings/China
Power's TaiHu biomass waste to energy plant/project:
1. Size: 1240 tons-per-day
2. Annual waste disposed: 409,200 tons
3. Construction period: 24 months
4. Operating period: 30 years
5. Power Capacity: 50 MW
6. Annual electricity produced: 411,050,000 kW-hrs
7. Annual electricity sold: 361,680,000 kW-hrs
8. Total Project Investment: 610,790,000 RMB
9. Electricity sell Price: 0.61 RMB/kW-hr
10. Fuel Delivery Price: 150-300 RMB per ton
China Holdings/China Power, Inc., with its technical expertise, its business experience and connections in China, is well-positioned in the biomass waste to energy market in China. The five biomass waste to energy projects have agreements in place with the local authorities, are viable and profitable.
These five projects will handle only 2 million tons of biomass waste
annually compared to the 650 million tons of biomass waste produced
annually in China. The biomass waste to energy market in China is therefore
only in its infancy.
Highlights of the Biomass Waste To Energy Projects
-- 5 Biomass Waste To Energy Plants in China, which are expected to begin
operations in 2010
- Renewable Energy - PRC governmental support
- Environmentally ''Clean'' & ecologically ''friendly''
- Alternative Energy for PRC - no oil, no coal, not hydro, not nuclear
- Experienced Management
The Company is developing its Renewable Energy Projects & Pipeline in Biomass Energy Power Generation Plants & Hydropower Plants in hopes of reaching a total Potential Power Capacity of 3200 MW by the year 2013 via Merger & Acquisitions (M&A), Joint-Venture Partnerships with Biomass Energy Plants/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 have technical, social, and environmental benefits 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 the Company's 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. (OTC Bulletin Board: CHHL), is a diversified global assets holding company. The Company and its subsidiaries engage in multiple China-focused business activities including energy, renewable energy, resources, utilities, finance, real estate and pharmaceuticals. 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 three wholly-owned subsidiaries: (i) China Power, Inc., (ii) China Minerals Holdings, Inc.; (iii) 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 global energy & renewable energy holding corporation which focuses on Merger & Acquisition, Joint-Venture Partnership, Investment, Research & Development, Construction and Operation of energy, renewable energy, and environment protection projects in China and worldwide. The Company is developing its Renewable Energy Projects & Pipeline in Biomass Energy Projects & Hydropower Plants to reach the Total Potential Power Capacity 3200 MW by the year 2013. The Company's Advanced Renewable Energy Strategy & Plan in Hydropower Plants and Biomass Energy Projects will have technical, social, and environmental benefits and provide investment and business activities in the cost- competitive biomass energy and hydropower capacity energy supply in China and worldwide, and also increase its worldwide shareholders' values in the long term.
Biomass Energy in China
China's energy development has serious resource constraints. Its current energy resources are primarily from diminishing domestic fossil fuels, but it is becoming increasingly dependant on expensive imported fuels, ecologically disastrous hydroelectricity and vulnerable and expensive nuclear energy. Therefore, one of the most urgent problems the Chinese Government faces is to build a safe, economic, clean and sustainable energy supply system, whilst solving the energy supply bottlenecks. Consequently the Chinese Government is encouraging the use of alternative energy production with both incentives and privileges. One of the solutions is to develop Biomass energy.
China is rich in agricultural and forestry waste materials such as straw, bush and quitch. By year 2012, the total biomass generating capacity is expected to reach 300 million kilowatts and 1600 million kilowatts by 2020. Many areas have good conditions for developing biomass energy production. The government recognizes this and is aiming to establish biomass power plants not only in major grain-producing areas but also transform small coal-fired thermal power units into Biomass burning.
The Chinese Government encourages investment in the field of renewable
energy by providing support in the following areas:
1. Law: The Renewable Energy Law was passed by the People's Congress of
China on February 28, 2005 and came into force on January 1, 2006.
2. Tax Benefits: To encourage the construction of renewable energy
projects, the Chinese Central Government has introduced a series of tax
exemptions, incentives and tax holiday privileges.
3. Electricity Price: To ensure the construction and development of
renewable energy projects, the National Reform and Development
Committee has set the standard electricity price for renewable energy
0.25Yuan/KWH higher than the local average grid connection price. This
is approximately 40% higher than the local average. Additionally, there
is a supervision system to ensure full purchase and payment of all
renewable energy produced.
4. Carbon Credits: The Chinese Government allows qualifying joint venture
plants to trade Clean Development Mechanism (CDM) credits. These can be
traded in advance of Plant construction at around US$ 10-15/ ton or at
a much higher value if traded after construction is completed.
Biomass Waste as a Clean Renewable Energy
Straw is the main by-product from the harvesting of the agricultural crop. In the past, straw, bush and quitch was used as a household cooking fuel. However, in recent years, as China's agricultural economy has developed and farmers' incomes have increased, the usage of straw, bush and quitch has decreased sharply. Farmers now prefer to use fuels, such as coal and gas, which are easier to use, have higher energy content, and require less space for storage.
An increasing amount of straw, bush and quitch is now burnt in the open in many regions in China. The burnt portion can be as much as 80% of the straw, bush and quitch produced and causes serious environmental problems.
Instead of open burning, straw, bush and quitch can be used to generate electricity in an environmentally friendly manner. By 2010, China will have between 350 million tons to 370 million tons of unused straw. If this huge amount of straw is used for power generation, it would represent an additional 450 billion KwH of electricity. Biomass waste to energy is therefore a very sustainable and environmentally friendly potential energy source in China.
Smoke emissions from agriculture waste open-burning and forest fires badly affect air quality. Collecting agriculture from farmers can avoid biomass burning in site, which caused not only smoke and pollutants but also risk highway transportation and air transit. Removing forestry waste like accumulated dead wood and bush, dry quitch, foliage and grass from forested areas can reduce forest fire risk. The biomass waste to energy plant will offer a rewarding application with effective and clean combustion compared to straw open-burning in site or forest fire, and will significantly reduce and eliminate smoke emitted from open burning in site and forest fires.
To the extent that statements in the press release are not strictly
historical, including statements as to revenue projections, projections of
results of specific activities or investments, business strategy, outlook,
objectives, future milestones, plans, intentions, goals, future financial
conditions, future collaboration agreements, economic performance and
trends, 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, Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
information is inherently subject to risks and uncertainties, and actual
results could differ materially from those currently anticipated due to a
number of factors, which include, but are not limited to, risk factors
inherent in doing business. Forward-looking statements may be identified by
terms such as "may," "will," "should," "could," "expects," "plans,"
"intends," "anticipates," "believes," "estimates," "predicts," "forecasts,"
"potential," or "continue," or similar terms or the negative of these
|SOURCE China Holdings, Inc.|
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