SHANGHAI, Oct. 13 /PRNewswire-Asia/ --
-- CER recovery systems provide nearly 24MW clean thermo energy capacity
annually with savings of 57,100 tons of coal and 151,700 tons of CO2
China Energy Recovery, Inc. (OTC Bulletin Board: CGYV) (ISIN: US16943V2060; "CER"), a leader in the waste heat energy recovery sector, today announced the completion of two waste heat recovery systems for Hubei Yangfeng Group ("Yangfeng"), a leading phosphate fertilizer producer in China. Total contract value for the CER systems is RMB9.73 million (approximately US$1.42 million) about RMB8.3 million (approximately US$1.22 million) of which will be recognized by CER in Q3 2009, according to US GAAP (see below for revenue recognition details).
The completed systems are designed to generate 120 tons of steam per hour, which translates into nearly 24MW of thermo power generation capacity. These systems will help Yangfeng achieve an estimated annual saving of up to 57,100 tons of coal (coal equivalent) and reduce carbon dioxide emissions by up to 151,700 tons.
Yangfeng is one of China's largest producers of phosphate fertilizer, which is used widely in agriculture. Globally, China is the largest producer of phosphate fertilizers and is also the largest market for these basic goods.
"We are very pleased to have completed these waste heat recovery systems for Yangfeng, which is an important repeat customer of CER," said Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery.
"China remains a big agricultural country, and the demand for fertilizer is substantial," Mr. Wu said. "With Chinese government's regulations mandating greater environmental protection and energy savings, it is becoming crucial for fertilizer producers to include waste heat recovery systems in their facilities. This is a market segment we have been focusing on and expect to have continued growth."
The contract value presented above includes a 17% value added tax ("VAT") and a 5% retainage for product warranty purpose. According to US GAAP, VAT and the retainage are excluded for revenue recognition purpose for the current period and the retainage will be recognized as deferred revenue. The numbers presented represent values based on current exchange rates. Changes in the currency exchange rates would result in a commensurate change in contract value.
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 vast amounts 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.
About China Energy Recovery, Inc.
CER is an international leader in designing, manufacturing and installing waste heat energy recovery systems which provide facilities with greater energy efficiency. The company's primary focus is on the Chinese market. CER's technology captures industrial waste energy to produce low-cost electrical power, enabling industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate sellable emissions credits. CER has deployed its systems throughout China and in such international markets as Egypt, Korea, Vietnam and Malaysia. CER focuses on numerous industries in which a rapid payback on invested capital is achieved by its customers, including: chemical, paper manufacturing, refining (including methanol refining), etc. CER continues to invest in R&D and plans to build China's first state-of-the-art energy recovery system research and fabrication facility to allow it to meet the increased demand for its products and services. For more information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp . Information on CER's website does not comprise a part of this press release.
Forward-Looking Statement Disclaimer
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that CER believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, CER's ability to execute on its business plan and strategies and CER's ability to successfully complete orders and collect revenues therefrom. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's filings with the Securities and Exchange Commission, including CER's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2009.
For more information, please contact:
Adam Friedman
Adam Friedman Associate
Tel: +1-212-918-2529 ×18
Email: adam@adam-friedman.com
Cindy Cheng
China Energy Recovery, Inc.
Tel: +86-21-5556-0020 x503
Email: ir@haie.com
