IT Tech Packaging, Inc., a globally renowned manufacturer and distributor of diversified paper products in North China, has announced that its operating entity in China, Hebei Baoding Dongfang Paper Milling Company Limited (Dongfang Paper), expects to launch the construction of a combined heat and power generation project utilizing biomass technology (Biomass CHP project) with the total construction area of 80,373 square meters which is located in its Wei County production base.

Biomass CHP

The company's biomass CHP project included in the 13th Five-Year Biomass Power Generation Program of Hebei Province has recently been approved by the Development and Reform Commission of Xingtai Municipality.

Biomass CHP, a kind of renewable energy power and heat generation, utilizes biomass resources, mainly crop straw and forestry waste. As one of the key industries encouraged and supported by the Chinese government, Biomass CHP, beneficial for both the environment and economy, can alleviate energy shortage, as well as improve the environment and employment to a certain extent.

Biomass boilers and steam turbine units installed

Dongfang Paper will construct two 75 t/h biomass boilers and two 4.5 MW back-pressure type steam turbine units

According to the plan of the Biomass CHP project, Dongfang Paper expects to construct two 75 t/h biomass boilers and two 4.5 MW back-pressure type steam turbine units, as well as auxiliary production facilities. The whole project is expected to be finished at the end of 2021.

With successful operation, the project is expected to generate annual electricity output of 56.45 million kw/h, from which the Company expects to generate revenue of RMB42.9 million per year based on the biomass electricity price of RMB0.76/kwh guided by the National Development and Reform Commission.

Generation of large-scale heating steam

The project is also expected to generate annual heating steam of 521,100 tons, from which the company expects to generate revenue of RMB114.64 million per year based on the heating steam's current market price of RMB220 per ton.

Mr. Zhenyong Liu, Chief Executive Officer (CEO) and Chairman at IT Tech Packaging, Inc. commented, "The biomass CHP project is expected to not only provide adequate power and gas supply to the Company's tissue paper production located in Wei County Industrial Park, but also provide bio gas for production of enterprises in the Wei County Industrial Park, as well as heating steam and electricity supply for nearby residents."

He adds, “The construction and operation of the Biomass CHP is expected to enable us to expand to the renewable energy field and continue to diversify our offerings of products, which we believe will bring more stable revenue streams in the future."

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