Everbright Environment Secures Shandong Qingdao Jiaozhou Integrated Solid Waste Treatment Project, Further Expanding its Solid Waste Treatment Business

12 January 2022, Hong Kong – China Everbright Environment Group Limited ("Everbright Environment" or the "Company") (SEHK: 257) announced that the Company recently secured Shandong Qingdao Jiaozhou Integrated Solid Waste Treatment ("Jiaozhou Project") Phase I, which commands an investment of approximately RMB867 million. This marks the expanded market presence of the Company's environmental protection business and further solidification of its business portfolio in Shandong's environmental protection market.

According to the concession agreement of the project, Jiaozhou Project will be operated based on an Invest-Construct-Operate model for a concession period of 30 years (including construction period). The project will be responsible for the integrated treatment of household waste, food waste, municipal sludge, fly ash and incineration residue for Jiaozhou City (including the rural area). It is designed to have a daily household waste processing capacity of 1,200 tonnes, a daily food waste processing capacity of 100 tonnes, and a daily municipal sludge processing capacity of 200 tonnes, in addition to a fly ash landfill and amenities for integrated utilisation of incineration residue. Jiaozhou Project will be equipped with two 600 tonnes/day mechanical grate furnaces and a 25 MW turbine power generator, and is expected to generate green electricity of 126 million kWh per annum. The gas emission and leachate treatment of the project will fully comply with relevant national standards, with the daily average level of online monitored gas emission superior to the Industrial Emissions Directive 2010/75/EU. The plant zone of the project will reserve an area for future projects. Upon local demand of waste treatment in the future, supplementary agreement(s) relating to the future projects will be signed in due course, followed by commencement of relevant construction work.

Jiaozhou Project has been included in the "Implementation Plan for Domestic Waste Incineration Power Generation in Shandong Province (2019-2030)". The Company will apply for national renewable energy power generation subsidies in accordance with relevant requirements after the project completes construction and commences operation. According to the concession agreement of Jiaozhou Project, the project company's receipt of renewable energy subsidies will be linked to the waste treatment service fee adjustment mechanism to ensure reasonable return of the project.

Everbright Environment started its environmental protection business in Shandong Province, and has always been active and confident in deeply involving in the local market. Since securing the first environmental protection project in Qingdao as early as in 2003, the Company has invested in and implemented nearly 120 environmental protection projects in the province, with a total investment of nearly RMB30 billion. With a business presence in many counties and cities, such as Ji'nan, Qingdao, Zibo, Pingdu and Linshu, these projects cover various business areas, including waste-to-energy, food waste treatment, hazardous and solid waste treatment, integrated biomass utilisation, water environment management, environmental remediation, waste sorting and energy-saving lighting. In addition to expanding its environmental protection projects and services, Everbright Environment has also furthered its long-term, friendly partnership with relevant local parties in the field of technology and innovation cooperation in recent years. In 2018, the Company cooperated with Qingdao University of Technology to jointly establish the Everbright-Qingdao University of Technology Research Institute of Environmental Technology to build Shandong's first dioxin testing and control engineering research center. The Company has also made Qingdao one of the four technology and innovation hubs of its "Four-in-One" system for technological innovation and research and development.

Everbright Environment's business presence in Jiaozhou will further enhance the Company's business strength in Shandong's environmental protection market and boost synergy across its projects within the province. Adhering to its business philosophy of "Pursuing Excellence and Close to Zero Discharge", the Company will develop Jiaozhou Project into a benchmark for comprehensive environmental protection industrial parks, to facilitate the ecological conservation progress in Jiaozhou.