Energy conservation: A New Investment Opportunity Part I

No steaming hot "white vapor" will come out of the cooling towers in any factories in Laiyang, Shandong Province, in two years' time. This is not because these factories will stop production, but because the "white vapor" will be recycled to become heat and transfer to the heating pipes of nearby buildings.

The "reusing surplus heat" project is now under construction by Zhejiang Dun'an Artificial Environment Co. Ltd. (Dun'an Environment). On June 25, Duan'an Environment signed an engineering contract with the municipal government of Laiyang, according to which the city will utilize industrial surplus heat and waste heat, as well as waste heat in urban sewage, to meet the demand of heating for both urban households and industrial use. With a planned investment of 500 million yuan ($78.86 million), the project is expected to complete in July 2014.

Listed in Shenzhen, Dun'an Environment is a professional manufacturer of refrigeration auto-control components, electric refrigeration central air conditioners and terminal equipment. But in the first half of this year, engineering projects utilizing industrial surplus heat became its major source of income. According to its announcement, in the first half of this year, the company received four orders for industrial surplus heat utilization projects, with a total contract amount of 3 billion yuan ($473.19 million), an equivalent of 60 percent of the company's sales revenue in 2011.

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