Everbright Environment Secures Multiple Waste-to-Energy Projects, Enhancing Waste Processing Capability and Solidifying Local Market Positions

21 December 2021, Hong Kong – China Everbright Environment Group Limited ("Everbright Environment" or the "Company") (SEHK: 257) announced that the Company recently secured Henan Nanyang Waste-to-Energy Project ("Nanyang Project") Phase II, Hainan Lingshui Waste-to-energy Project ("Lingshui Project") Phase II and Danzhou Waste-to-energy Project ("Danzhou Project") Phase II. These projects contribute an additional designed daily household waste processing capacity of 2,350 tonnes, with a total investment of approximately RMB1.235 billion.

With an investment of RMB925 million, Nanyang Project Phase II will be implemented based on a Public-Private Partnership ("PPP") model for a concession period of 30 years. With a designed daily household waste processing capacity of 1,500 tonnes, the project will be equipped with two 750 tonnes/day mechanical grate furnaces and a 15 MW mid-temperature sub-high pressure steam turbine power generator. Gas emission and leachate treatment will fully comply with relevant national standards, and gas emission will fully comply with the Euro 2010 Standard (Directive 2010/75/EU). Everbright Environment secured Nanyang Project Phase I in 2019 and commenced project construction in October 2020. The Company will proceed construction work of the phase I and II of Nanyang Project for higher synergy. Upon completion of all construction work, Nanyang Project will have a designed daily household waste processing capacity of 3,000 tonnes in total and is expected to generate 383 million kWh of green electricity per annum.

Lingshui Project Phase II, with an investment of approximately RMB135 million, will be implemented based on a Build-Operate-Transfer ("BOT") model. Its concession period will end simultaneously with Lingshui Project Phase I. With a designed daily household waste processing capacity of 350 tonnes, Lingshui Project Phase II will be equipped with a 350 tonnes/day mechanical grate furnace and a 9 MW mid-temperature sub-high pressure condensing steam turbine power generator. The project will comply with the Standard for Pollution Control on the Municipal Solid Waste Incineration of Hainan Province (DB46/484-2019). Lingshui Project Phase I completed construction in 2019 and has been operating smoothly since then. After Lingshui Project Phase II completes construction and commences operation, Lingshui Project will have a total designed daily household waste processing capacity of 1,050 tonnes and is expected to generate approximately 130 million kWh of green electricity per annum.

Danzhou Project Phase II, which commands an investment of approximately RMB175 million, will be implemented based on a PPP model. Its concession period will end simultaneously with Danzhou Project Phase I. With a designed daily household waste processing capacity of 500 tonnes, Danzhou Project Phase II will be equipped with a 500 tonnes/day mechanical grate furnace and a 15 MW steam turbine power generator. It will also implement the Standard for Pollution Control on the Municipal Solid Waste Incineration of Hainan Province (DB46/484-2019). Danzhou Project Phase I completed construction in November 2020 and has been operating stably since then. The total designed daily household waste processing capacity of Danzhou Project will increase to 1,500 tonnes in the future, which is expected to generate approximately 195 million kWh of green electricity per annum.

With the newly secured projects, Everbright Environment’s household waste processing capacities will exceed 10,000 tonnes/day in Henan Province and 6,000 tonnes/day in Hainan Province, respectively, further enhancing the Company's waste treatment service capacities and solidifying its local market positions. With the steady growth in business scale, continued consolidation of cooperative relationships with the local authorities, and enhanced relationships with the local communities, Everbright Environment will adhere to its corporate mission of "Being Devoted to Ecology and Environment for a Beautiful China" and its development philosophy of "Pursuing Excellence and Close to Zero Discharge". The Company will continue to ensure smooth operation and compliance with relevant emission standards across its projects. By leveraging on these projects, the Company will focus on its "Three Carbons" strategic target and action plan, which consists of "becoming a carbon-negative company, developing zero-carbon plants and pursuing a low-carbon lifestyle", to facilitate the progress of achieving green and low-carbon targets while gaining synergistic efficiency, through better realisation of harmless treatment, reduction and recycling of waste.