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Veolia wins EUR 864 million worth of energy services contracts in China

Veolia has announced that it has secured three energy services contracts with industrial clients in China with a combined total value of EUR 864 million. According to Veolia, the deals confirm its position as an energy services specialist for industrial clients in China.

France-headed global waste and water management company Veolia Group has announced that its subsidiary, Veolia China Holding, has been awarded three energy service contracts for industrial clients in China. According to a statement, the company will provide a suite of solutions based on its expertise in this sector, to improve its clients’ energy performance and to help them comply with the regulations for the new Chinese environmental standards.

– This win of three new contracts in the Energy sector is an evidence of Chinese industries’ growing need of renewable energies and effective energy management. The regulation continuously becomes tighter and, as a result, industries must reduce their environmental footprint. And this merely creates more excellent opportunities for Veolia, said Régis Calmels, Senior Executive Vice-President of Asia, Veolia Group in a statement.

The three contracts signed respectively for 10, 20 and 25 years represent a combined total value of around EUR 864 million.

Steam production for Hongda Chemical

The first contract is for energy performance management at the site of Hongda Chemical, a subsidiary of one of China’s leading chemicals industry groups. The EUR 335 million contract includes financing and installing a best-in-class system for managing and optimizing a steam production plant.

The anticipated client benefits include cost savings, compliance with the new regulations for greenhouse gas (GHG) emissions, and a sufficient quantity of steam and demineralized water for the smooth operation of its business.

Cooling for Beijing data center

The second contract valued at EUR 188 million entails the construction and operation of a chilled water plant for a data center in one of China’s main IT hubs, a platform specifically designed for big data. Veolia will enable the client, an undisclosed Chinese publishing company, to comply with new standards introduced in Beijing requiring a strict Power and Water Usage Effectiveness.

This metric is used to determine the energy efficiency of a data center. This legislation will be gradually rolled out to the entire country, bringing stricter requirement on the power consumption by the IT systems versus the total power consumed by the entire data center. It effectively measures the eco-responsibility of the data center operation.

Biomass CHP for Hebei

The third contract involves the production of electricity and steam from biomass for undisclosed chemicals and construction manufacturing clients in Hebei province. Worth EUR 341 million, it covers the construction, operation, and maintenance of a biomass-fired combined heat and power (CHP) plant in the province to replace the use of coal.

Located in China’s northeast, this province has enjoyed buoyant growth in the last few years resulting in a strong and sustained demand for steam. The new CHP will enable the industrial clients to continue with their transition towards using a higher proportion of renewables in their energy mix and will account for up to 80 percent by the end of the contract.

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