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Two power plants generating electricity from garbage and gas went into operation yesterday in Suzhou, in East China's Jiangsu Province.

 

The plants are part of a HK$1.5-billion (US$192.3 million) waste-disposal zone inaugurated by Hong Kong-listed China Everbright International.

 

The zone, the first of its kind in China dedicated to the processing of urban household waste and industrial solid waste, will be completed in three to five years, Chief Executive Chen Xiaoping told the launch ceremony.

 

The overseas arm of mainland conglomerate China Everbright Holdings said that the zone was part of its strategy to focus on environmental protection as China strives to cut pollution.

 

The garbage-fuelled power plant has the capacity to process 1,000 tons of refuse, or nearly half of the waste produced by the urban area of Suzhou every day, which could generate around 93 million kilowatt-hours a year.

 

According to the country's incentive policies, the company could sell the electricity to the national power grid at 0.575 yuan (7 US cents) per kilowatt-hour, which is nearly double that of traditional power plants, Fan said. Meanwhile, the company could charge 90 yuan (US$11.3) to handle one ton of refuse.

 

Philip Fan, executive director and general manager of Everbright International, said the company's investment focus has gone green.

 

The company, which previously invested in the infrastructure and real-estate sectors, sold its entire 15-percent stake in Mawan Power, which currently runs two power plants in Shenzhen, a city bordering Hong Kong, on Monday.

 

"The offer was very good and we believe that traditional power plants are coming under pressure to make profits given the rising price of raw materials," Fan explained. "Meanwhile, we would like develop our image as a company dedicated to environmental protection."

 

Fan added that the company could not rule out the possibility of selling its stake in a toll bridge in Fuzhou in East China's Fujian Province, its last investment in infrastructure.

 

"We will not make a point of selling the project since it is contributing stable revenue to the company, but if the offer is really good, we cannot rule this out," Fan said.

 

He said the company would invest around HK$1 billion (US$128 million) annually in environmental-protection projects.

 

(China Daily September 1, 2006)