(Taipei, February 3, 2023) HDEC, a subsidiary of Continental Holdings Corporation (stock code: 3703), held a signing ceremony with Tainan City Government for the Tainan Chengxi New Incineration Plant BOT Project. With years of accumulated experience in environmental engineering and a solid reputation in the water treatment industry, HDEC was awarded this project, marking its official entrance into the renewable energy business.
“The acquisition of this project is of great significance to HDEC. It means that HDEC has broadened its specialization from water engineering to include energy engineering,” said HDEC CEO Jerry Chou. He added, “In the era of new energy, everyone pays increasing attention to the circular economy. Therefore, how to effectively dispose of waste and even convert it into energy have been recent focuses for HDEC. This project represents our foray into waste-to-energy business.”
This project includes the construction of a new incinerator and the renewal and operation of the original landscape feedback facility covering an area of 1.6 hectares. Once completed, the new incineration facility can process up to 900 tons of waste daily, generate electricity with an efficiency exceeding 25%, while meeting increasingly stringent air pollution emission standards. HDEC will use new technologies and standards to improve operational efficiency and power generation capacity, and help enhance the quality of waste disposal services in Tainan City.
This new waste incineration plant BOT project has a total investment of NT$7.215 billion and a franchise period of 25 years (construction period of 3 years, operational period of 22 years). In order to undertake this project, HDEC established Chengxi Energy Company as s a SPC (Special Purpose Company). The backlog HDEC’s backlog value (as of the end of Q3 2022) amounted to NT$36.1 billion, which is expected to contribute stable revenue to Continental Holdings Corporation.
