CER lands $5 Million contract from Lanfeng Biochemical Co. Ltd.

Date:03-31-2011

China Energy Recovery Inc. (CGYV.PK) (“CER”), an international leader in the design, fabrication and installation of waste heat recovery systems, announced today that it signed a contract with agrochemical manufacturer Lanfeng Biochemical Co. Ltd. to design, manufacture and install a waste heat recovery system for a new sulfuric acid manufacturing plant being constructed at Lanfeng Biochemical’s manufacturing complex in Xinyi City, Jiangsu Province.

The contract’s present value is RMB33.21 million or $5.1 million US.  The system, which is rated to produce up to 22.5 tons of steam-per-hour at 180°C and 0.8MPa, is scheduled for completion in the second quarter of 2012.

"CER is pleased to have been selected by Lanfeng Biochemical as its partner in this important engineering project, which will reduce the amount of energy the new plant requires from outside the facility and also lower operating costs,” CER Chairman and Chief Executive Officer Qinghuan Wu said.

"CER continues to book significant orders as new, energy-efficient chemicals manufacturing capacity is brought on across China,” Mr. Wu said. "CER’s waste heat recovery systems are central to China’s industrial manufacturing sector achieving energy-efficiency goals established by national policy last year. As importantly, CER’s systems also reduce industrial manufacturers’ operating costs.” 

To date, CER has announced contracts for delivery in fiscal 2011 and 2012 whose total value exceeds $125 million (US).

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 as much as two-thirds of that wasted energy and converting it into usable heat energy or electricity, dramatically lowering energy costs. Energy recovery systems are also capable of lowering heat pollution and 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.