(Taipei, February 3, 2023) HDEC, a subsidiary of Continental Holdings Corporation (stock symbol 3703), held a signing ceremony with Tainan City Government for the Tainan Chengxi Incineration Plant BOT Project. HDEC enjoys a solid reputation in the water treatment industry, and after years of accumulated experience in environmental engineering, was selected to undertake this case, marking HDEC’s official entrance into the renewable energy business.
“The acquisition of this case is of great significance to HDEC. It means that HDEC will broaden its specialization from water engineering to include energy engineering,” said HDEC CEO Jerry Chou. He added, “in the era of new energy, everyone pays more and more attention to the circular economy. Therefore, how to effectively dispose of waste and even convert it into energy is the new direction for HDEC. This topic is also a new direction for HDEC in recent years.”
The case includes the construction of a new incinerator and the renewal and operation of the original landscape feedback facility with an area of 1.6 hectares. After the renewal furnace is newly constructed, daily garbage processing capacity can reach 900 tons. In addition to meeting increasingly stringent air pollution emission standards, power generation efficiency is expected to be greatly increased to more than 25%. HDEC will use new technologies and standards, improving operational efficiency and power generation capacity, and help improve the quality of waste disposal services in Tainan City.
Tainan Chengxi Incineration Plant BOT Project involves private participation with a total investment of NT$75.15 billion and a concession period of 25 years ( 3-year construction, 22-year operation). In order to implement this case, HDEC established Chengxi Energy Company as s a SPC (Special Purpose Company). Until the end of the third quarter of 2022, the current contract balance of HDEC in hand is about NT$36.1 billion, which is expected to contribute stable revenue to Continental Holdings Corporation.
