Monday, 14 May 2012

DP CleanTech signs contracts for two 30MW biomass power plants in Southern China

Last week DP CleanTech signed a contract agreement with Shaoneng Group for the delivery of two 30 MW biomass power plants near Shaoguan in South China and will be the 53rd and 54th biomass power plants delivered to the China market. The Shaoneng Project will use eucalyptus and wood residues to generate renewable electricity for the local community.

The owner of the project, Shaoneng Group, is one of the largest business conglomerates in Southern China, its business ranging from power generation and mechanical engineering to recycled paper-tableware. Power generation is regarded as its main business, with installed capacity reaching 45 GW, including 20 GW thermal power and 25 GW hydro power. This will be Shaoneng Group’s first investment in biomass energy in China, and is further evidence of the rapid mainstream adoption of biomass energy solutions in China amongst both state and privately owned utilities and businesses.

After recent concerns in China over the wind and solar industry and difficulties with gaining grid connection, biomass has been identified as one of the best renewable energy investment opportunities in China. Due to the ability to deliver baseload power, as well as provide added benefits to rural communities, the Chinese government is strongly  encouraging the further adoption of biomass power throughout China.  At the same time, government targets and incentives are providing added investor confidence.

Simon Parker CEO, DP CleanTech said “The Chinese government has recently implemented new laws to better control the development of biomass power plants. These new policies are a positive step in the right direction, and will encourage a healthier industry that utilizes modern efficient solutions with better environmental protection. Standards between China and Europe are converging, and we are pleased to see the Government taking the development of the industry seriously to ensure its robust growth to become a key component of its clean energy strategy. The combination of our European and Chinese experience, technology and professional approach is starting to pay dividends as our clients become more knowledgeable and demanding of their biomass energy partners.”  

DP CleanTech is well positioned to benefit due to its superior experience delivering biomass power plants in China and its emphasis on providing total, integrated solutions DP has the best proven track record in China having delivered 40% of the biomass power plants operating in China today, including plants of varying size and fuel type. Furthermore DP CleanTech’s European technology holds significant advantage over local competitors in meeting the China government’s recently implemented NOx emissions standards.