China Energy Recovery, Inc. (CGYV)

[INDY]

9/26 NEWS:

One of China's Largest Sulfuric Acid Manufacturing Plants Celebrates Three Years Combined Success of Advanced Waste Heat Energy Recovery System with Power Generation Capacity of 54 MW of Electricity

-- Two Lions Fine Chemical Company, a leader in using advanced heat recovery technology, saves millions on energy costs allowing it to pay off cost of energy recovery system in less than two years -- Nearly 250,000 tons of reduced CO2 emissions result in approved carbon credits for the project valued at approximately US$2.5 million per year

SHANGHAI, China, Sep 26, 2008 (BUSINESS WIRE) -- China Energy Recovery, Inc. (OTCBB:CGYV) ("China Energy Recovery" or "CER"), a leader in the waste-heat energy recovery sector of the alternative energy industry, today recognized that an important client of CER, Two Lions (Zhangjiagang) Fine Chemical Co., Ltd. ("Two Lions"), located in Jiangsu Yangtze River International Chemical Industry Park, remains a model of waste heat recovery technology application with installed power generation capacity of 54 MW of electricity utilizing recovered heat energy, the largest of its kind in the sulfuric acid industry in China.
When construction was completed in 2005, the plant was considered the most technologically advanced sulfuric acid production facility in the world, and its one million ton per year output capacity continues to make it China's largest single sulfuric acid manufacturing facility. Two Lions has been able to attain a payback period of less than two years for the installed energy recovery system from energy cost savings resulting from the system. Additionally, Two Lions was granted Clean Development Mechanism (CDM) certification and was approved to sell carbon credits for nearly 250,000 tons of reduced CO2 emissions annually, the very first CDM certification in China's sulfuric acid industry. The current value of the carbon credits is estimated to be more than US$2.5 million per year.

"We are very proud of the success of Two Lions and appreciate that they returned to us for additional projects. With customers like Two Lions to recognize the benefits of waste heat recovery technology, we are more committed than ever to making sure our systems continue to improve in order to maximize heat energy recovery capability for our customers," stated Chairman of the Board and CEO of China Energy Recovery, Mr. Qinghuan Wu. "As a comparison, to generate the same amount of electricity as Two Lion's installation in a coal fired power plant would require burning approximately 100,000 tons of coal per year. In contrast, Two Lion's energy recovery system generates the same amount of electricity without consuming any additional fossil fuel. This represents what our entire company's mission is about, and we look forward to continuing to maximize our opportunity for growth with companies like Two Lions and others throughout our target markets."

What is Waste Heat Energy Recovery?

Industrial facilities and power plants release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering vast amounts of that wasted energy and converting it into usable electricity, dramatically lowering energy costs. Energy recovery systems are also capable of capturing the majority of carbon emissions and other harmful pollutants that would otherwise be released into the environment. It is estimated that energy recovery systems installed in U.S. industrial facilities could produce up to 20% of U.S. electricity needs without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.