Plasco Energy Signs Joint Venture for Plant in China

Date: June 17, 2010

Source: Plasco Energy Group

Plasco Energy Group (Ottawa, ON) announced a joint venture with China Energy Conservation and Environmental Protection (CECEP) Group to build a 300 ton-per-day waste-to-energy facility in Beijing, China by the "second quarter of 2012." The plasma gasification plant will be about a third larger than one planned for Red Deer, AB and similar in design to a pilot project operating in west Ottawa. The Beijing facility is expected to cost $170 million to build and will be financed by its joint venture partners with a mix of debt and equity. The plant will earn revenues from disposal fees and from selling the power produced. Last week, an Alberta environmental agency gave a $10-million grant to Plasco Alberta to build the Red Deer plant originally announced two years ago.

The giant Chinese state-owned CECEP, with 30,000 employees, was formed in 1988 to promote and develop environmental protection technology and projects. Since then it has invested the equivalent of $3.5 billion (23 billion yuan) in national energy-conservation and capital construction projects.

PRESS RELEASE:

Plasco to Sign Major Agreement During China State Visit

China Energy Conservation and Environmental Protection Group (CECEP) and Plasco Energy Group have announced that they will be signing an agreement to establish a Joint Venture corporation, CECEP-Plasco China Corp, tomorrow during China's state visit to Canada.

CECEP Plasco China will be based in China and jointly owned by the two companies. Plasco will provide its world leading Plasco Conversion System technology to be delivered in China only through this Joint Venture. CECEP agrees that CECEP and its subsidiaries will use the Plasco Conversion System for development in China of projects to recover energy from waste. "We can make a big difference in cutting global warming causing gasses from landfill in the world's fastest growing economy with one of the largest populations on earth through this partnership," said Plasco CEO Rod Bryden. "This technology, developed right here in Ottawa, can help communities all around the world to handle waste and contribute to our green energy future starting right now."

China currently landfills more than 160 million tonnes of MSW per year with the amount growing due to the urbanization and rapid economic development of the country.

"The opportunity presented by this joint venture between CECEP and Plasco Energy Group is truly exciting for both companies," said Wang Xiaokang, President of CECEP. "Soon, not only Ottawa and Beijing, but communities across all of China will handle their municipal waste in the most environmentally friendly way, producing clean, reliable energy and usable materials. Garbage will truly become a resource rather than a waste."

China Energy Conservation and Environmental Protection Group, referred to as CECEP, established in 1988 in response to the second oil crisis. Since its establishment, CECEP has been working to promote energy saving and environmental protection technology and projects. It is responsible for the investment of RMB 23 billion yuan in national energy conservation capital construction projects, brings more than RMB 30 billion yuan local investment, promotes 13 major categories, and accomplished more than 3,000 major projects.

CECEP is a state-owned enterprise, which is fully sponsored and owned by the central government. The corporation has 172 wholly owned and holding subsidiaries with over 30,000 employees. CECEP is the strongest, largest and most competitive industry group in the field of energy conservation and environmental protection in China.

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