Everbright International Unveils Hangzhou Waste-to-energy Project, Attention-grabbing Project Completes Construction and Commences Operation

30 November 2017, Hong Kong – China Everbright International Limited ("Everbright International" or the "Group") (HKSE: 00257) is pleased to announce that the Group's Hangzhou Waste-to-energy Project ("Hangzhou Project" or the "Project") in Jiufeng Village of Yuhang District, Hangzhou City of Zhejiang Province, has successfully passed the "72+24-hour" trial run and commenced operation, following 18 months of construction.

Hangzhou Project commands an investment of approximately RMB1.8 billion, with a designed daily household waste processing capacity of 3,000 tonnes. The Project is mainly responsible for processing waste from downtown area of Hangzhou City and is expected to generate approximately 390 million kWh of green electricity annually. The Group holds a 70% equity stake in the Project, which was constructed on a BOT ("Build-Operate-Transfer") model with a concession period of 30 years.

The Project is equipped with four self-developed 750 tonnes/day mechanic grate furnaces, and two 35MW straight condensing turbine power generators. The flue gas purification technique adopts an advanced portfolio of engineering technology, including "SNCR (Selective Non-catalytic Reduction) + Rotary Spraying Semi-dry Reaction Tower for De-acidification + Dry De-acidification + Activated Carbon Injection + Bag Dust Filter + SCR (Selective Catalytic Reduction) + Wet De-acidification + Gas-to-Gas Heat Exchange (GGH) + equipment that eliminates water vapor out of gas". The gas emissions fully comply with the Euro 2010 Standard. The leachate treatment facilities will have a daily leachate treatment capacity of 1,500 tonnes and the water produced from the leachate treatment complies with water quality standards allowing the utilisation of reused water in open-type recirculating cooling water systems, realising the "full reuse and nil discharge" of leachate.

Hangzhou Project's successful operation serves as a sound practice of quelling the "Not in My Back Yard Effect" (NIMBY) and turning into a beneficial neighbourhood effect. After the "Zhongtai Affair" in 2014, Hangzhou Project has attracted intense attention from home and abroad. In order to launch the Project smoothly, Hangzhou Municipal Government organised a tour of nearly 5,000 residents to visit advanced waste-to-energy projects in China and offered prompt responses to public concerns and appeals, which successfully overturned the public opinion on waste-to-energy projects. As a result, the Project was able to commence construction smoothly.

Meanwhile, Everbright International is highly recognised by residents in Jiufeng Village of Hangzhou City because of the Group's good track record, solid technical background and great sense of corporate social responsibility. Fully considering public choices, Hangzhou Municipal Government introduced Everbright International to construct the Project. Following this decision, the government played a leading role proactively, while Everbright International acted on its project responsibilities, putting the public interest as priority. The Project fully reflects the respect from the government and the Group for and their responsibilities towards the public, and is beneficial to people's livelihood. All of these factors resulted in the successful launch of the Project at its original site followed by the commencement of operation.

During the project construction period, Hangzhou Municipal Government disclosed all information about the Project to the public, insisted on fulfilling formalities in compliance with laws and regulation, and gave timely responses to relevant public concern. As to long-term development issues concerned by surrounding residents, the government fully considered the policy compensation measures to balance interests of different parties, launched relevant policies in a timely manner, and also set up an environmental protection foundation, which is designated for the improvement of environment of surrounding communities, constructing other municipal auxiliary facilities and providing maintenance, fuelling economic development in the region, among others.

Mr. Chen Xiaoping, CEO of Everbright International, said, "Hangzhou Project has attracted considerable attention from the government, the market, investors, the public and the industry. The Project completed construction and commenced operation, which was supported by the considerable attention and concerted efforts of multiple parties including the government, local residents and the Group. During the project development process, the Group was dedicated to enhancing communication with the public, ensuring they have the right to know and the right of supervision. Everbright International is committed to adopting outstanding management, design, and construction philosophy to ensure Hangzhou Project's advanced technology and technique, strict discharge standard, and energy conservation, as well as site-area optimisation. The Project has achieved the harmless treatment, reduction and reuse of waste."

Mr. Chen continued, "Starting from the grand foundation of the Project to the current waste-to-energy plant with its amazing courtyard scenery, Everbright International has been upholding its core value that 'An enterprise is not only the creator of wealth, but also the safeguard of environmental and social responsibility'. We not only ensure the Project's safe and steady operation, as well as compliance with discharge standards, but also integrate with adjacent communities, and implement the partnership between villages and enterprise. Residents living nearby will be employed on a preferential basis so as to improve the environment and boost industry upgrades in surrounding areas. We will continue to embody a high level of social responsibilities, and keep improving the Project, making Hangzhou Project an 'industrial tourism attraction, and demonstration base of the circular economy, environmental protection excellence, science education and CPC's education', which will make it a new benchmark around the globe."