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Delong reduces carbon footprint with co-generation plant

SINGAPORE - Singapore-listed Chinese hot-rolled steel coil manufacturer Delong Holdings said it has completed the construction of its first co-generation power plant in a bid to reduce its carbon footprint.

The 15 megawatt power plant near the city of Xingtai in Hebei province, which costs about 65 million yuan ($10.2 million) uses waste heat and gas from its steel coil production processes to generate power, the company's chairman Ding Liguo said on Sept 20.

Ding said the construction of the co-generation power plant is in line with the company's environmental commitments.

"The operation of this plant not only saves energy, but also brings about a radical improvement in the air quality and overall environment. We can reduce our production costs and energy consumption, and also be able to overcome issues arising from local power supply shortages," he said.

The plant will reduce Delong's total coal usage by about 36,000 tons a year, thereby reducing total production costs by an estimated 40 million yuan ($6.3 million) annually. It will also reduce carbon emissions by about 98,000 tons a year.

The plant can also create 60 jobs a year, Ding said, adding that the company has a strong track record in cutting costs by recycling waste gas, water and residue.

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