BAODING, China (News release) -- IT Tech Packaging, Inc., a leading manufacturer and distributor of diversified paper products in North China, announced that it has obtained qualification to supply central heating in industrial parks after month-long review process for its combined heat and power generation project utilizing bio mass technology ("Biomass CHP Project").
ITP completed procurement bidding process in February 2021 for its Biomass CHP Project. Tai Shan Group Co., Ltd., a top boiler manufacturer in China, won the bid. Construction works on the site have been commenced. With successful operation, the project is expected to generate annual electricity output of 56.45 million kw/h, supply annual electricity of 46.29 million kw/h and generate annual heating steam of 521,100 tons, which are sufficient to meet the Company's internal power and gas demand for paper production, as well as to supply industrial gas to enterprises operating in the industrial parks and to supply heating and electricity to nearby residential compounds that we expect to bring in significant revenues to ITP. The Company expects to generate revenue of RMB114.64 million (approximately $17.5 million) per year based on the heating steam's current market price of RMB220 per ton. If the project is connected to nearby grids , the Company expects to generate RMB42.33 million (approximately $6.5 million ) in revenue per year based on RMB0.75 kw/h market price of biomass electricity, according to biomass electricity pricing policies set by China National Development and Reform Commission. In total, we estimate to generate an annual revenue of RMB157 million (approximately $24 million) through the Biomass CHP Project.
Mr. Zhenyong Liu, CEO and Chairman of the Company commented, "For the Biomass CHP Project we make use of biomass resources (mainly crop straw, forestry waste and pulp residues) for power generation and heating, which greatly promotes the development and utilization of renewable resources. The goal is to help solve problems related to energy shortage, environmental protection and workforce employment. The renewable energy also fall under key industries that China plans to develop. In addition, through the project the Company expects to expand its business to include high and new technology business that facilitates environmental protection and diversify our sources of revenue and ensure our stable modes of profit-making."