Everbright International's Dehydration and Incineration Technology Upgrade in Jiangyin Has Passed Inspection

Improves Dehydration and Incineration Technology to Set New Direction for Sludge Treatment Successfully

China Everbright International Limited ("Everbright International" or "the Group"), is pleased to announce that its dehydration and incineration technology upgrade project in Jiangyin City, Jiangsu Province ("Jiangyin Project") has passed the inspection by the Jiangyin Environmental Protection Bureau on 23 November 2011. The Jaingyin Project sets a new direction for sludge treatment successfully.

While the rate of treated waste water in urban area of China continues to increase, the volume of sludge also increases rapidly as a byproduct of the waste water treatment plants. Currently, only a small portion of sludge in urban waste water treatment plants undergoes hygienic landfill, soil recycling in the form of fertiliser, non-hazardous incineration that would yield construction materials. Most of the sludge has not undergone any standardised treatment. Harmful materials such as bacteria and heavy metals in the sludge can cause serious secondary pollution of soil and water, and directly threaten public safety and health, largely reducing the benefits of the waste water treatment facilities to the environment. Solving the problem of the ultimate disposal of sludge requires urgent attention.

Waste water treatment is one of the main businesses of the Group and rendering sludge harmless has become its focus. With the support of both provincial and municipal environmental protection bureaus and the Jiangyin Construction Bureau, Everbright Water (Jiangyin) Limited has deployed a high pressure diaphragm filtration technology to carry out the sludge dehydration treatment. This lowers the water content of sludge from 98% to below 50%, then the treated sludge is delivered to Everbright Environmental Energy (Jiangyin) Co., Ltd. and added into the household waste in certain proportion, followed by incineration in furnaces. The toxic component in the sludge will be completely destroyed during the 900Oc high temperature incineration procedure. Passing through the advanced emission treatment system, the gas generated from the incineration complies with the Euro 2000 Standard. The slag residue can also be reused as construction materials after screening, thus achieving integrated utilization of resources.

Construction of the Jiangyin Project commenced on 27 August 2011. As it effectively uses the structure and mechanical equipment of the original dehydration process and there is no need to acquire additional land, it can significantly reduce investment and the use of the precious land resources. The environmental protection inspection results have stated that the volume of sludge has been reduced substantially with the water content of sludge down from 98% to below 50% and the volume of sludge subsequently shrinking by about two-thirds. The Jiangyin Project has remarkable effect in sludge reduction. Also, it boasts additional innovations including automatic-adding modifier, automatic sludge collection and deodorisation equipment, which will significantly enhance operational efficiency, help to beautify the environment and reduce secondary pollution, thus should be greatly promoted.

Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, "We are pleased that the Jiangyin Project has passed the inspection procedure. Through the dehydration and incineration processes during the implementation of the Jiangyin Project, we have not only discovered an effective method of treating sludge which originally had nowhere to be placed, but also achieved the goal of sludge reduction, decontamination and reuse so as to maximise integrated efficiency. The Jiangyin Project has brought a new income stream and enhanced efficiency to the Group's operations. This breakthrough in sludge treatment for waste water treatment plants has set a new method of sludge treatment within waste water treatment plants in China."