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CHINA NEW ENERGY (AIM: CNE) Expansion of Biogas Contract
Posted 22/11/11
The engineering and technology solutions provider to the bioenergy sector recently issued an update on its exciting contract to design and construct a bio-gas recovery and purifying plant at a beer brewery.
The Group’s wholly owned subsidiary, Guangdong Zhongke Tianyuan New Energy Science and Technology Co. Ltd (“ZKTY”) successfully completed and handed over the Xin’ao biogas plant and, the plant has now started commercial operation to recover and sell purified 7,000 metre3 of biogas daily as fuel for domestic use.
ZKTY specialises in the production of biogas through the treatment and anaerobic fermentation of waste-by-products from the bio-ethanol production process, so quite advanced!
ZKTY ALSO has an agreement to design and build a bio-gas recovery and purifying plant at a beer brewery owned by Kingway Beer Group, located in Shenzhen China, with the intention that the purified biogas be sold to Shenzhen City Gas Group. This project is expected to be completed during the first half of 2012 with ZKTY bearing the cost of plant construction and subsequently co-sharing the revenue generated from the sale of biogas. Based on a daily purified output of 7,000 metre3 of biogas estimated total sales revenue will be RMB 8mper annum (c£800k).
ZKTY is also in negotiations with a China state-owned bio-ethanol company to design and build a bio-gas recovery and purifying plant capable of generating a whopping 60,000 metre3 of biogas daily. Once again it’s proposed that ZKTY will bear the investment cost of constructing the facility and co-share the revenue generated of cRMB30m per annum (c£3m)
For the half year ending 30th June 2011 total revenue was up 54.7% to RMB49.2m and pre-tax profit RMB1.3m (2010: Loss RMB854k)
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