Published on April 16th, 2013 | by Anneli Hidalgo0
GreenStream signs EMC with Chinese paper manufacturer
GreenStream has signed an Energy Management Contract (EMC) with Henglian Shandong Guanghua Paper Group Co., Ltd, a paper manufacturer in Shandong province in China.
The EMC contract is first of its kind for utilizing state of the art Finnish technology in China and the technology provider is Runtech Systems Ltd. The signing ceremony was hosted by Finland’s Consul General in Shanghai, Ms. Marja Aspelund, and attended by Finland’s Minister for European Affairs and Foreign Trade, Mr Alexander Stubb.
The EMC model enables mill owner to implement energy efficiency project without own initial investments. The scheme is similar to European Energy Service Company (ESCO) scheme. The EMC scheme is strongly supported by the Chinese Government with tax reductions and initiatives to enhance loaning by Chinese banks. The active governmental intervention has created a rapidly developing business with investments of RMB 56 billion (EUR 7 billion) in 2012. Since 2006, the beginning of the previous 5-year-plan, the annual average growth rate for investment has been more than 70%.
“This gives us a unique opportunity to operate with wide spectrum of industries and technologies. Currently, over 70% of the volume of saved energy for Chinese EMC scheme is achieved in industry. Simultaneously, industry is lagging behind its savings targets set at the 12th 5YP”, says Jussi Nykänen, the CEO of GreenStream. The Chinese emissions reduction targets put further pressure to Chinese industry. “The synergy between our emission reduction and energy efficiency activities is big and the broad expertise we have brings real value to our clients”, Nykänen adds.
The contracting party, Henglian Shandong Guanghua Paper Group Co., Ltd, is an integrated paper manufacturer producing coated paper, tissue and pulp. The company is a subsidiary of Shandong Henglian Group, a China Top30 Pulp & Paper company headquartered in Weifang City, Shandong Province. GreenStream’s project will improve the energy efficiency of the paper machine’s vacuum system by using the world’s most advanced turbo blower designed and manufactured by Runtech Systems Ltd in Finland.
GreenStream’s activities in China are coordinated through a joint venture with the Juno Capital Group. The partnership combines local experience and relationships with GreenStream’s expertise, and leverages a strong network of key industrial, financial, and regulatory stakeholders in China. GreenStream is currently involved in about 70 Chinese emission reduction projects representing an underlying investment of approximately €5-6 billion.
GreenStream EMC and energy efficiency project activities in China are also promoted by Team Finland. Team Finland’s pilot project called “Energy Efficiency Solution Business Concept for the Chinese Industrial Market” program is a 2-year project lead by GreenStream Network and financed by Tekes, the Finnish Funding Agency for Technology and Innovation. Alongside Team Finland’s support, this program is also assisted by the Federation of Finnish Technology Industries. The program launches pilot projects in six different industries in China, in addition to developing new business models for Finnish technology companies in energy efficiency projects in China.