China Engery Technology (CET )has been working with with the strongly support from provincial and autonomous region governments, CET has signed number of exploration and development agreements with different county governments in Guizhou Province, Shanxi Province, Shaanxi Province, Xinjiang Autonomous Region and Inner Mongolia Autonomous Region. CET has acquired total 1,773 km2 potential coal fields for exploration and development.
Besides, The Chinese Ministry of Land and Resources has issued three Exploration Rights (licenses) for our Guizhou, Daifang project and Shaanxi, Xi Zhen & Shang Goa Zai projects respectively. CET estimates the total coal reserve for all projects is between five billion and ten billion tons
Currently, Guizhou and Inner Mongolia projects¡¯ explorations are underway and Shaanxi projects¡¯ exploration preparation works have been completed. The results of all initial explorations are very encouraging. Throughout the explorations, CET not only obtained valuable coal reserve data, but also clarified the geographic structure of the project zones. These provide us precious blueprints for the future coal mine explorations, evaluations and developments.
In the wind power energy sector, CET established China (HK) Natural Energy Development Group Ltd. (NEDG) in September 2007. The major business of the NEDG is to manage company¡¯s renewable energy projects in Mainland China. Despite a short operating time, recently, NEDG has made a lot of achievements in the wind power energy segment. NEDG has signed number of wind power energy development agreements with county governments in Hainan Province, Heilongjing Province, Xinjiang Autonomous Region and Inner Mongolia Autonomous Region. In the ¡°Eleventh Five Year Plan¡± (2007-2012 )phase, NEDG plans to invest ten billion to fifty billion RMB to develop total power output 5,000MW wind power farms and expects to expend the investment to one hundred billion RMB by 2020 in order to enhance the power output capacity to 15,000 MW.
Recently, the international society has passed number of environmental protection laws and regulations, the main purpose of the new environmental protection laws and regulations is to regulate and reduce greenhouse gases emission. As a member of the globe village, Chinese government also noticed the urgency and significant of environmental protection. On 1st January, 2006 The Chinese government announced the Renewable Energy Law, encourages all Chinese citizen and businesses to use more clean energy, to develop more renewable energy sources, and bio fuels.
On 1st September, 2007, Chinese government implemented the Renewable Energy Power Grid Purchasing Supervision Regulations that requires all Chinese electricity power grid companies to purchase all renewable energy generated in their covered areas and must provide power grid services to the renewable energy producers which including wind, sunlight, tides, bio & geothermal heat powers. Further, the Chinese National Development & Reform Commission announced a new policy that requires 30% of the electricity energy generated from power companies must come from renewable energy sources. From the abovementioned Chinese new laws, regulations and policies, it clearly reflects the Chinese government will continually encourage developing renewable energy through administrative and regulatory actions.
In view of the fact that the Chinese government¡¯s constantly encouragement and support, the demand of the renewable energy must increase in the future dramatically. CET believes our renewable energy investments are remarkable opportunities for the company. To deal with the new business opportunity, CET established China (HK) Natural Energy Development Group Ltd. (NEDG) in September 2007. The major business of the NEDG is to manage our Mainland China renewable energy projects.
Currently, China (HK) Natural Energy Development Group Ltd. has obtained total 1,730km2 wind resources land in Hainan Province, Heilongjing Province, Xinjiang Autonomous Region and Inner Mongolia Autonomous Region. Each wind power energy projects has been granted 25 years of operating rights. Depending on the wind speed, geographic conditions, and the lot size, each wind power energy project will be divided into 3 to 10 development phases. We estimate one of the projects will be completed in between 2009 and 2010. The total power output of all wind power projects will reach 1,831.5MW when all projects are accomplished by the year 2020.
(China Energy Technology Holdings Ltd , Nov 20, 2008)
