Veolia inks €864m energy services deal with China
French waste management company Veolia has announced it has signed three deals worth €864 million with China, including a biomass project deal.
The company will provide a suite of solutions based on its expertise in this sector, to improve its clients’ energy performance and to help them comply with the regulations for the new Chinese environmental standards.
One part of the deal involved the company winning a €341-million project to boost the production of electricity and steam from biomass for chemicals and construction clients, via its subsidiary Veolia China.
The 25-year-old plan will include construction, operation and maintenance of a biomass plant in North China's Hebei province in a bid to increase the use of renewable energy in the region's energy mix.
In a statement, Veolia said: “This resource, used as an alternative to coal in industrial production processes, and supplied by Veolia at competitive rates, enables industrial clients to continue with their transition towards using a higher proportion of renewables in their energy mix. In this instance, renewables will account for up to 80% by the end of the contract. A team of 65 will be assigned to the site operation and maintenance teams.”
The second deal worth €335 million is expected to improve energy performance management at the site of Shandong Hongda Chemical, one of China's leading industrial groups in East China's Shandong province, mainly by reducing costs.
As part of the third contract, Veolia plans to build a chilled water plant for a data center in China's main information technology hub in Beijing to help clients comply with the very stringent standards for energy efficiency in the region.
Régis Calmels, senior executive Vice-President of Asia, said: “This win of three new contracts in the Energy sector is an evidence of Chinese industries' growing need of renewable energies and effective energy management. The regulation continuously becomes tighter and, as a result, industries must reduce their environmental footprint. And this merely creates more excellent opportunities for Veolia.”
This story was written by Liz Gyekye, editor of Bioenergy Insight.