NF Energy Saving, an energy saving services provider, has entered into an agreement to invest in the Gaizhou Biomass Gas Supply Project jointly with Gaizhou Gas Industry Company, a company licensed by Gaizhou municipal government to provide the gas production within Gaizhou city.
Under the terms of the agreement, NF Energy will be responsible for managing the $35.5m Gaizhou Biomass Gas Supply Project, including project design and construction.
The Gaizhou Biomass Gas Supply Project, which will take two years to complete construction, is estimated to generate revenue of up to $14.1m annually and save 40,600 tons of standard coal per year once fully operational.
The revenues generated from the project will be split between the two companies according to their respective investments, with NF Energy investing 62.2% of the capital required over a two-year time frame and Gaizhou Gas contributing the remaining 37.8%.
NF Energy’s CEO Gang Li said that this project represents an important milestone in China’s campaign to become more energy efficient and promote emission reductions.
“As a large agricultural country, China is rich in biomass raw material, including agricultural garbage and animal waste, with an estimated 5 billion tons nationwide and NF Energy is well positioned to capitalize on emerging opportunities in the near future in this fast-growing market,” Li said.