Companies

Energy firm makes its mark in China, abroad

By Ariel Tung (China Daily)
Updated: 2010-11-30 16:51

NEW YORK - Now that it has successfully secured a listing on the Nasdaq global market, CEO Li Gang and NF Energy Saving Corp wants US investors to get into the flow of aiding China's future in energy conservation.

Founded in 2006, the company is a supplier of flow control equipment and valves to coal, hydro and nuclear power generation facilities in the domestic China market. It is headquartered in Shenyang, Liaoning province in Northeast China.

Li said the company aims to be the leader in the energy-saving and emissions reduction industries in Asia in three to five years. But to get there, it must not only get the support of the Chinese government but from US investors as well.

"Energy is a critical issue for China's growth and the world's economic development. We are hitting a bottleneck for natural resources. The question is, how do we sustain China's growth without causing more adverse impacts on the environment? And how do we use energy conservation to fuel the nation's rapid growth," said Li, who was in New York City last week to ring the closing bell at the Nasdaq MarketSite.

"The purpose of this New York visit is to get capital support as well as technical support from one of the most advanced industries in the world so that we can strengthen our energy conservation capacity and technology know-how."

China's future is moving in the direction of energy conservation and emissions reduction. The nation's ongoing urbanization will create a stronger demand for underground pipeline networks for water, heat, oil and gas. That is where Li hopes NF Energy can step in.

The company, whose partners include General Electric, Honeywell and Shell, has some recent high-profile experience providing flow systems. It was responsible for providing the flow control systems to the Guangzhou 2010 Asian Games.

Asked if he thinks China should take lead the charge in tackling environment issues and energy conservation, Li said: "global warming did not happen overnight. The environmental problems are caused by the developed countries' industrialization over the years. Europe and the US account for only 20 percent of the world's population, but they used up 80 percent of the world's energy. I believe developed countries have the responsibility in taking the lead in cutting emissions. By asking developing countries like China to play a lead role in reversing climate change, they are denying the developing countries their rights to achieving growth and a higher standard of living for their citizens."

The Chinese government has in recent years paid close attention to climate change and has implemented a series of measures to reduce emissions and conserve energy.

The Chinese government, in its 12th Five-Year Plan (2011-2015) has allocated more than 200 billion yuan ($30 billion) for energy conservation, emissions reduction and environmental protection measures, said He Bingguang, deputy director of the environment and resources department for the National Development and Reform Commission.

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Li said the company has benefited directly from the government's tax incentive policies. "The government is giving us lots of support and room to grow," he said.

In October, NF Energy signed an agreement with the State-owned Gaizhou Gas Industry Co to jointly invest in the Gaizhou Biomass Gas Supply Project in Liaoning.

Slated for completion in 2012, the project is expected to save 40,600 tons of standard coal a year and generate revenue of up to 96 million yuan annually. The Gaizhou government licenses the Gaizhou Gas Industry Company to exclusively provide gas within the city.

"This project represents an important milestone in China's campaign to become more energy efficient and promote emissions reductions," Li said.