Beijing Development up 4.1pc on plans for waste-to-energy venture
Beijing Development (Hong Kong) announced a joint venture for a 1.53 billion yuan (HK$1.9 billion) waste-to-energy project in Beijing’s Haidian district.
Shares of Beijing Development (Hong Kong), the information technology and waste treatment unit of state-backed energy-to-brewery conglomerate Beijing Enterprises, gained 4.1 per cent after it announced a joint venture for a 1.53 billion yuan (HK$1.9 billion) waste-to-energy project in Beijing’s Haidian district.
The shares traded at HK$2.82 at 11.23am today. They have risen 76 per cent since the start of the year, outperforming the Hang Seng Index’s 8 per cent gain.
Under the deal, Beijing Development has entered into an agreement with Beijing Lvhaineng Environmental Protection, wholly-owned by the municipal government, in which the two firms will invest in a processing plant with a daily capacity of 2,500 tonnes.
This includes waste incineration amounting to 1,800 tonnes, and the fermentation of 400 tonnes of food waste a day.
The formation of the [joint venture] with Lvhaineng represents an attractive opportunity
Power generated from the plant will be sold to the power grid at 0.65 yuan per kilowatt-hour. It will also collect a waste treatment fee of 125 yuan per tonne.