Northern Energy Development, Tianjin Jinre and Tractebel Engineering Partner to Create Coal-to-Gas Conversion Plan for China

Tractebel Engineering S.A. of Belgium is partnering with Hua Xia Northern Technology Development (Tianjin) Limited, a subsidiary of Norther New Energy Holdings, and Tianjin Jinre Heat-Supply Group Co. Ltd. on a series of coal-to-gas conversion heating projects. This is part of the Republic of China's current push to move to cleaner energy sources in the country.

The partnering arrangement will focus on improving the service of heating facilities and networks, energy efficiency management and construction of gas storage facilities. The Group, Tractebel and Jinre Group have agreed to jointly submit a feasible proposal regarding the scope of cooperation to relevant government agencies on or before 30 September this year. The cooperation is expected to enable the Group to upgrade its professional technologies for grasping opportunities arising from the strong demand for clean new energy in Tianjin, as well as develop into an enterprise capable of offering diverse integrated new energy services.

Both parties that the Group signed agreement with are resourceful. With more than 150 years of experience, Tractebel is one of the world's largest engineering and consultancy companies. It provides first-class engineering and consultancy services in energy, water and infrastructure. Tractebel has its expertise extended across Europe, Africa, Asia, Middle East and Latin America. Meanwhile, as the key heat-supply enterprise in Tianjin, Jinre Group is a specialized and well-established heat-supply group, which integrated its operation as the provision of heat-supply engineering construction, centralized heat-supply management, new technology research and development as well as material supply.

At the end of last year, the PRC government announced the "2017-2021 Winter Clean Heating Plan in Northern China", which promises enormous business opportunities to the new energy sector and benefits to the all-round development of the Group. In the long run, the Group will strive to develop its diverse integrated new energy services, expand its new energy business to cover nearby areas in the north and continue to explore opportunities of multi-lateral cooperation, so as to generate greater shareholder value.