China Energy Recovery signs $14M deal at pulp mill

Shanghai-based China Energy Recovery (OTCBB: CGYV) said it has signed contracts to design and build a straw pulp alkali recovery system for Shandong Tralin Group, one of the biggest manufacturers of paper in China.

China Energy Recovery (CER) plans to work with CMIIC Engineering & Construction, one of China’s largest industrial construction firms.

The 95 million RMB ($13.9 million USD) system is expected to treat the plant's toxic black-liquor byproduct to reduce discharge to meet government mandates. The system is also designed to generate 145 tons of steam per hour, equivalent to nearly 12 megawatts of heat energy generation capacity for the plant.

CER's technology is also expected to recover 195 tons of alkali per day, which can be reused in the pulp making process.

The recovery system is a key part of the Shandong Hai River Basin Pollution Control Project sponsored by the Asian Development Bank.

"We expect that the system will be the largest of its kind in the world upon completion and designed and developed entirely based on our own technology," CER Chairman and CEO Qinghuan Wu said in a release. "This signifies an important milestone for our further expansion in the market of waste treatment and energy recovery of the paper-making industry both in China and abroad.”

Wu said CER has secured additional orders worth 40 million RMB for 2009.

CER's technology captures industrial waste energy to produce low-cost electrical power primarily in China, but also in Egypt, Turkey, Korea, Vietnam and Malaysia.