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BAODING, China, April 7, 2021 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE American: ITP) ("ITP" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that it has obtained qualification to supply central heating in industrial parks after month-long review process for its combined heat and power generation project utilizing bio mass technology ("Biomass CHP Project").
ITP completed procurement bidding process in February 2021 for its Biomass CHP Project. Tai Shan Group Co., Ltd., a top boiler manufacturer in China, won the bid. Construction works on the site have been commenced. With successful operation, the project is expected to generate annual electricity output of 56.45 million kw/h, supply annual electricity of 46.29 million kw/h and generate annual heating steam of 521,100 tons, which are sufficient to meet the Company's internal power and gas demand for paper production, as well as to supply industrial gas to enterprises operating in the industrial parks and to supply heating and electricity to nearby residential compounds that we expect to bring in significant revenues to ITP. The Company expects to generate revenue of RMB114.64 million (approximately $17.5 million) per year based on the heating steam's current market price of RMB220 per ton. If the project is connected to nearby grids , the Company expects to generate RMB42.33 million (approximately $6.5 million ) in revenue per year based on RMB0.75 kw/h market price of biomass electricity, according to biomass electricity pricing policies set by China National Development and Reform Commission. In total, we estimate to generate an annual revenue of RMB157 million (approximately $24 million) through the Biomass CHP Project.
Mr. Zhenyong Liu, CEO and Chairman of the Company commented, "For the Biomass CHP Project we make use of biomass resources (mainly crop straw, forestry waste and pulp residues) for power generation and heating, which greatly promotes the development and utilization of renewable resources. The goal is to help solve problems related to energy shortage, environmental protection and workforce employment. The renewable energy also fall under key industries that China plans to develop. In addition, through the project the Company expects to expand its business to include high and new technology business that facilitates environmental protection and diversify our sources of revenue and ensure our stable modes of profit-making."
About IT Tech Packaging, Inc.
Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE American since December 2009.
Safe Harbor Statements
This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.
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