IT Tech Packaging’s subsidiary Hebei Baoding Dongfang Paper Milling Company has announced plans to construct a biomass combined heat and power generation (CHP) project.

To be built on area of 80,373m2 located in its Wei County production base, the project will use biomass technology.

The firm said that its biomass CHP project, which is included in the 13th Five-Year Biomass Power Generation Program of Hebei Province, has secured approval from the Development and Reform Commission of Xingtai Municipality.

The biomass CHP project is a kind of renewable energy power and heat generation, which uses biomass resources, mainly crop straw and forestry waste.

The biomass CHP project is expected to be completed at the end of 2021

IT Tech Packaging CEO and chairman Zhenyong Liu said: “The biomass CHP project is expected to not only provide adequate power and gas supply to the Company’s tissue paper production located in Wei County Industrial Park, but also provide bio gas for production of enterprises in the Wei County Industrial Park, as well as heating steam and electricity supply for nearby residents.

“The construction and operation of the Biomass CHP is expected to enable us to expand to the renewable energy field and continue to diversify our offerings of products, which we believe will bring more stable revenue streams in the future.”

The project involves construction of two 75 t/h biomass boilers and two 4.5MW back-pressure type steam turbine units and auxiliary production facilities.

The facility is expected to be completed by the end of 2021.

Once operational, the project is estimated to generate annual electricity output of 56.45 million kw/h and annual heating steam of 521,100 tonnes.

In November last year, German electric utility company E.ON has announced its plans to invest approximately €110m to construct a biomass power plant at a paper mill site in Hürth, Germany.