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Northern New Energy Signs Letter of Intent with Four Enterprises
Jointly Invest and Establish a JV Company for the LNG Heat Supply and Integrated Utilisation Project in Xinkou Town, Tianjin
HONG KONG, Mar 16, 2016 - (ACN Newswire) - Northern New Energy Holdings Limited ("Northern New Energy" / the "Group;" stock code: 8246) is pleased to announce that Hua Xia Northern (Tianjin) New Energy Technology Development Limited ("Hua Xia Northern New Energy"), a Sino-foreign equity joint venture, has signed a Letter of Intent with Tianjin Jinre Heat Company Ltd*; CNOOC Gas & Power Group*; Tianjin Ding Wang Property Services Company Ltd* and Tianjin Chengxi Heat Supply Co., Ltd*. The parties intend to collaborate and invest in the establishment of a JV Company named Tianjin Jinre Hua Xia New Energy / "JV Company" for the Liquefied Natural Gas (LNG) Heat Supply and Integrated Utilisation Project located in Xinkou, Xiqing District in Tianjin. The total investment amount of the project is RMB50 million; Hua Xia Northern New Energy is intended to account for 20% of interest in the JV Company.
Located in Xinkou, Xiqing District in Tianjin City, Tianjin Jinre Hua Xia New Energy is principally engaged in the development, consultation, servicing and transfer of new energy technologies and LNG-related new energy businesses. The cooperation will promote synergies in various areas including fund-raising, infrastructure, heat supply operation, gas for heating facilities, integrated utilisation, integrated service and technical support for natural gas in Xinkou, as well as the coordination and development of end-users in the region. All these factors will aid the development of the JV Company.
The Group has implemented a series of strategic plans in the past year to capture the immense potential of China's new energy market. It has launched new energy related businesses immediately after establishing Hua Xia Northern New Energy. The Group has strengthened its management team last year by appointing Mr. Hu Yishi as the Executive Director and Executive Chairman of the Company, and Mr. Luo Xiang as the General Manager of Hua Xia Northern New Energy respectively. Mr. Hu has extensive experience in business development and expansion in the Chinese market, and is also very well-connected. Mr. Luo has accumulated many years of experience in management and business expansion in the energy sector from serving as the Deputy General Manager of China National Offshore Oil Corporation ("CNOOC") Bohai branch. Capitalising on its strong management team, the Group is able to build close cooperative relationships with a number of companies so as to jointly develop new energy related businesses.
The Tianjin Construction Committee has already approved the construction of heating facilities for the model town of Xinhou, which involves the modification of coal furnaces into LNG furnaces. Phase I of the coal to gas project encompasses the Jinjing metro line, Qingsha Road, Dangyang road, and the intersection of Dangcheng village and Upper Xinkou village. The project is intended to provide heating for an area of 390,000 sq.m. (as compared with the current area of 290,000 sq.m. currently) with an estimated LNG usage of over 2,000 tons per year. According to the plan, the area will be gradually expanded to 4 million sq.m. with an estimated LNG usage of over 30,000 tons per year.
The project will leverage on the advantage on clean energy and develop other fields such as gas filling stations for vehicles, natural gas supply for industrial and civil use, and integrated utilisaiton of LNG cold energy based on the conditions in the region. All resources of the project company will be provided by CNOOC Gas & Power Group, which will help maximise the gains of the project company.
Mr. Hu Yishi, Executive Chairman and Executive Director of Northern New Energy, said, "I am pleased to see the new energy business making satisfactory progress. We have completed a number of projects in Tianjin, China and launched a project involving the replacement of coal-powered heat sources with natural gas last year. The expansion of our coverage to Xinkou reflects that we are headed in the right strategic direction. Each enterprise in the JV Company equips with different know-how. We are very pleased to collaborate with CNOOC's subsidiary. We are confident the partnership will solidify the foundation of Northern New Energy and further strengthen our capability in tapping the clean energy business. We believe there is strong demand for coal-to-natural gas conversion heating projects in Northern China. Thus, we will look for opportunities to expand into other surrounding regions. In the long term, we will strive to expand into the global market and invest resources in regions possessing great potential. Looking ahead, we will also closely monitor the latest development in national policies and make timely adjustments to our business, allowing us to seize the opportunities created by favourable national policies."
The Group will make further announcements related to the signing of the official agreement in due course.
*Unofficial transliteration from Chinese name
Contact:Strategic Financial Relations Limited
Heidi So +852 2864 4826 heidi.so@sprg.com.hk
Keris Leung +852 2864 4863 keris.leung@sprg.com.hk
Caley Chan +852 2114 4950 caley.chan@sprg.com.hk
Source: Northern New Energy Holdings Limited
Sectors: Energy, Alternatives, Daily News
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