Xian, China, Sept. 04, 2018 (GLOBE NEWSWIRE) -- China Recycling Energy Corp. (NASDAQ: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announce that Shanghai TCH Energy Technology Co., Ltd. (“Shanghai TCH”), its wholly owned subsidiary, recently entered into a Letter of Intention (“LOI”) with a shareholder of Xi’an Xinhuan Energy Co., Ltd. (“Xinhuan”) to acquire 20% ownership of Xinhuan by issuing new shares of CREG. The Company and Xinhuan will make joint efforts to develop energy storage business in China.
In the context of the national efforts to promote the development of energy storage industry, the energy storage industry has ushered in a golden decade of development. The Chinese government encourages energy storage enterprises to become larger and stronger in order to compete internationally, and promotes the large-scale development of energy storage industry. The energy storage industry, firstly as the “first aid” to the grid at the critical moment to provide backup power supply and reduce the risk of power outage; secondly as an “energy sponge” to store power during electricity peak-off hours and release during peak hours to fill the gap; thirdly as the 'flexible energy resource' of the power system to guarantee the stable operation of the power grid and provide a new green means to alleviate the problems between power supply and demand.
Xinhuan provides the standard module energy storage system of MW-level "reserving - storing - supplying". The system includes power station management system (BMS), energy management system (EMS), GW core PACK integration system, intelligent "cloud" operation management system and other core energy storage technologies. Meanwhile, a series of advanced system solutions, such as power generation side concentrated energy storage power supply solutions, smart micro grid and industrial and commercial power supply, are introduced and used in this system. The standardized energy storage system module designed by Xinhuan can respond to user demand easily and quickly. It can also be assembled into energy supply system of various power and capacity according to the different requirements to meet various market demands and applicable to various application fields. The system module can be used independently or combined into large megawatt energy storage systems. The energy storage module adopts the international standard container, which is convenient for transportation, site installation and quick use.
Mr. Ku, Chairman of the Board of Directors of China Recycling Energy commented: " We are excited about the opportunity to acquire ownership of Xinhuan, which is an important step for our energy storage business. With the driving force of market demand and policy support in China, the energy storage industry will have a large probability of explosive growth and provide exciting development of this business. For the energy storage business in China, Xinhuan has taken the lead by investing and constructing several power storage projects. Its standardized, fast, low cost, high safety and flexible energy storage solutions are bound to attract more and more business and investment opportunities. With this acquisition of minority position of and cooperation with Xinhuan, we plan to quickly grow our energy storage business and take the market shares in the energy storage industry, which will bring new sources of revenues to the Company and benefit the environment."
About Xi’an Xinhuan Energy Co., Ltd.
Xi 'an Xinhuan Energy Co., Ltd. was established in 2005, with its manufacturing base located in Xinfeng industrial park, Lintong district, Xi 'an (covering an area of more than 100 mu, with workshop over 20,000 square meters). Since its establishment, Xinhuan has been focused on energy conservation and environmental protection and engaged in industrial waste heat power generation, new energy research and development, production and engineering of complete sets of equipment, engineering design, engineering general contracting, investment and operating, and advisory services. Xinhuan’s clients cover metallurgy, electric power, building material, and chemical industries with hundreds of projects of energy saving and emission reduction in several provinces and autonomous regions of China. Xinhuan owns design and manufacturing qualifications for A-class boilers, class one and two pressure vessels, C-class design qualification of power industry, class three qualification of power engineering construction and class two qualification of electromechanical installation and construction as well as six patents and core technologies with independent intellectual property rights.
Adhering to the mission of clean and efficient energy, Xinhuan actively participates in the construction of "energy + internet" and "smart energy town", and is committed to become a first-class supplier of integrated solutions of MW-level energy storage system in China. At the same time, Xinhuan combines industrial energy saving "cloud platform" and energy storage "smart cloud" to develop global network cloud platform, enabling households to achieve healthy development of "minimum manpower, minimum energy consumption and green energy efficiency" from the aspects of energy media such as gas, electricity, water and steam.
About China Recycling Energy Corp.
China Recycling Energy Corp. (NASDAQ: CREG or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1 percent of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://www.creg-cn.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.