Li'ang Ecological

Li'ang Ecological Energy Co., Ltd. is an environmental-protection and agriculture-benefiting green energy enterprise mainly engaged in cogeneration of heat and power from agricultural and forestry waste. Among peers nationwide, the company ranks in the top five in installed capacity and annual power supply, and leads in comprehensive profitability. Founded in June 2008, the company is headquartered in Changsha High-tech Development Zone, Hunan Province. Its registered capital is RMB 187 million, and paid-in registered capital is RMB 447 million. It currently has total assets of RMB 2.3 billion, more than 1,000 employees, and annual revenue of RMB 1.8 billion. The company has been awarded honors such as "National High-tech Enterprise," "2017 China Green Development Pioneer Award," "2017 China's Most Influential Green Enterprise Brand," and "Hunan Two-Oriented Demonstration Creation Project." It is a vice-chairman unit of the China Agricultural and Forestry Biomass Power Generation Special Committee and an executive council unit of the Biomass Energy Industry Branch of the China Industrial Development Promotion Association. In April 2010, August 2015, January 2017, and December 2018, the company hosted national industry summits (respectively the "China Biomass Power Generation Technology Seminar," "China Composite Biomass Energy Innovation and Development Summit Forum," "China Agricultural and Forestry Waste Energy Utilization Summit Forum," and "First Summit of Leaders of China's Agricultural and Forestry Biomass Cogeneration Backbone Enterprises"), enhancing the understanding and awareness of decision-making departments and the general public regarding China's agricultural and forestry waste cogeneration industry, and making due contributions to promoting the sustainable and healthy development of the industry. The agricultural and forestry waste cogeneration industry, whose main function is to handle crop straw and residues from forest product processing, is a rigid-demand industry for ecological civilization construction and important infrastructure for rural revitalization. China's industry started in 2006, and Li'ang is the fourth professional company in the country engaged in this industry. By the end of 2018, Li'ang had independently invested in and built a total of 13 agricultural and forestry waste power generation projects (2 of which are under construction and will be commissioned in 2019). These projects are distributed in Lixian and Hengyang of Hunan; Honghu and Jingzhou of Hubei; Langxi of Anhui; Haian of Jiangsu; Guigang, Fusui, Hepu, Huanjiang, and Xiangzhou of Guangxi; Luoshan of Henan; and Fuzhou of Jiangxi. The above projects have an annual agricultural and forestry waste processing capacity of 3.8 million tons, total installed capacity of 344 MW, annual green power supply of 2.5 billion kWh, annual industrial steam supply capacity of more than 1.5 million tons, increase farmers' income by more than RMB 1 billion annually through fuel procurement, annual organic fertilizer supply of more than 300,000 tons, saving 1.25 million tons of standard coal and reducing carbon dioxide emissions by 3.12 million tons; compared with coal power, it can reduce sulfur dioxide emissions by 72,000 tons annually; compared with open burning of agricultural and forestry waste, it can reduce nitrogen oxide emissions by 5,680 tons annually (actual emissions of 1,000 tons), and reduce dust by 49,500 tons (actual emissions of 500 tons). Among Li'ang's 13 projects, 3 have already achieved cogeneration of heat and power, providing centralized heating respectively to the Taiwan Industrial Park in Qintang District, Guigang, Guangxi; the Jingdu Textile Printing and Dyeing Industrial Park in Langxi County, Xuancheng City, Anhui; and the Songmu Industrial Park in Hengyang, Hunan. Among them, the Langxi Li'ang cogeneration project has been designated as a national "Hundred Towns Clean Heating Demonstration Project." By centrally supplying thermal steam to enterprises in the industrial parks where the projects are located, it avoids duplicate construction of boiler systems for each enterprise in the park, enables the entire park to have only one chimney, maximizes energy conservation and emission reduction in the park, greatly optimizes the overall supporting facilities of the park, and enhances the park's investment convenience. At the same time, Li'ang also recycles and utilizes wastewater and combustible waste residues from enterprises in the parks where it operates, maximizing resource conservation and environmental friendliness in the parks. In the next five years, the company will gradually achieve cogeneration of heat and power for all projects. After 10 years of development, Li'ang has achieved a series of pioneering results in project site selection, engineering construction, fuel organization, technology research and development, and team building. In the collection, transfer, storage, crushing, and co-firing of agricultural and forestry waste, it has created a unique Li'ang model, especially in fuel procurement, achieving regional, distributed, exclusive, and contractual centralized storage for more than 90% of each plant's fuel demand. At the same time, through centralized technical research, Li'ang has reached a leading level in the safe, stable, full-load, and long-cycle operation of units (the break-even point for unit operating hours in this industry is 6,500 hours/year; in 2017, the average utilization hours of units in the industry were 5,621 hours, while Li'ang's was 8,100 hours), forming a strong regional competitive advantage and achieving a positive unity of economic, social, and ecological benefits. In the next five years, Li'ang will focus on the energy utilization of agricultural, forestry, and animal husbandry waste, steadily develop cogeneration projects, and actively explore the bio-natural gas industry. At present, the company has applied for and established 3 bio-natural gas projects. After these projects are put into operation, Li'ang's total annual processing of agricultural, forestry, and animal husbandry waste will reach more than 5 million tons (calculated at 400 kg of rice straw per mu of rice field, equivalent to energy utilization of straw from 12.5 million mu of rice fields), and it will pay more than RMB 1.5 billion annually to farmers around the project locations for agricultural and forestry waste (based on the per capita disposable income of RMB 13,000 for rural residents in China in 2017 published by the National Bureau of Statistics, equivalent to solving livelihood problems for 115,400 farmers).