China CDM Fund Recovered Its First Entrusted Loan Principal in Full on Schedule
2016-05-08
On May 23, 2014, Wuanshi Yuhua Steel Co., Ltd (referred to as “Yuhua Steel”) in Hebei Province repaid China CDM Fund (referred to as “China CDM”) the full principal of the clean development entrusted loan as it matured, which had been used to implement the power generation project by utilizing waste heat and excess pressure and blast furnace gas.
It is an energy-saving and carbon-reducing technology of widespread use that has been encouraged and promoted on the national level to recycle waste heat and excess pressure and blast furnace gas for power generation. The project carried out by Yuhua Steel includes three subprojects with a total installed capacity of 44.5MW. They are the 10MW sintering waste heat power generation subproject, the 2×15MW blast furnace coal gas and fuel gas power generation subproject and the 4.5MW TRT (Blast Furnace Top Gas Recovery Turbine Unit) power generation subproject.
The project of utilizing waste heat and excess pressure and blast furnace gas to generate electricity by Yuhua Steel involved a total investment of 195 million RMB, 60 million of which was given as the clean development entrusted loan by China CDM for 3 years since May 25, 2011.
According to the information provided by Yuhua Steel, the two 15MW blast furnace coal gas and fuel gas power units, the 4.5MW blast furnace TRT and the 10MW waste heat power unit were completed and started to generate electricity in August of 2011, February and December of 2012 respectively. By April, 2014, the accumulated electric energy production reached 792 million kwh. Apart from the consumption during the generation process, 737 million kwh was left for the power supply of the production, which saved the company 457 million RMB in purchasing power and was equivalent to pre-tax profits of 233 million RMB plus 66 million RMB taxes.
Yuhua Steel hired a third-party organization to conduct an independent quantitative evaluation of the environmental benefits of the project. The results showed that till April of 2014, the accumulative carbon dioxide emission reduction amounted to 789,600 tons, sulfur dioxide emission reduction 23,800 tons, nitric oxide emission reduction 11,900 tons and dust emission reduction 215,400 tons. Therefore, the project has not only fulfilled its goal to cut carbon emission reduction but also significantly reduced the emission of air pollutants and made a concrete contribution to the treatment of haze.
Since green and low carbon development requires a huge amount of capital, the public-private-partnership model should be taken as the main measure to address the capital needs for it can leverage private capital and use the market force to promote the industrialization of the low carbon development, thus maximizing the win-win outcome of the economic, environmental and social benefits. The project of Yuhua Steel, supported by China CDM Fund, was a successful case of such nature.
15MW blast furnace gas power generating unit
4.5MW TRT power generating unit
10MW sintering waste heat power generating unit
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