Transcript PNNL Homeland Security Brainstorming Session

Dalian East Energy Development, Ltd.
©Transition Energy
DEED builds on-site electric power plants for the highpriced, power-short Chinese market.
Dalian, Liaoning Province, China
2007
Chinese Market Context
 Power costs industry more than in U.S.
 Shortages continue in many provinces.
 Waste heat recovery market > 1,500 MW.
 Adding 1 GW of coal-fired power per week!
DEED, Ltd.
DEED’s Business
 Product: Waste energy recovery
 Market: Cement, metallurgy
 Business model: BOOT
 Profitability: >30% IRR
 Finance needed:
$3M equity to complete 6.7 MW
$20M equity to complete 172 MW
DEED, Ltd.
Summary of Business Plan
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Commissioned two plants in April 2007
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To complete 25 MW by December 2007
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To build 175 MW by October 2008
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To generate 5 MT CERs through 2012
DEED, Ltd.
DEED
China’s Waste Recovery Power Generation Leader
Wang Yanjia
Han Zhong Huan
Tang Jin Quan
William Chandler
Jin Jiaman
DEED, Ltd.
Team
TANG Jin Quan Chairman and CEO, Dalian East Energy Development
Harbin Institute of Technology B.S., 1983. Pioneered the first waste heat recovery
power generation plants in China. Designed over 30 heat recovery systems, and
has built and operated 6 plants.
William CHANDLER
President, Transition Energy Holding Company
Harvard MPA, 1987. Thirty-three years of energy experience. Created energy
centers in six countries, including China, where he has worked since 1988. He has
designed, arranged financing for, and implemented nearly $1 billion in energyefficiency investments worldwide.
WANG Yanjia
Chief Scientist, Transition Energy Holding Company
Tsinghua University, Professor of Energy and Environment. Consults with World
Bank, OECD, IEA, Energy Foundation, Blue Moon Fund.
JIN Jiaman GEI Shareholder, Director for CDM Processes
Executive Director, Global Environmental Institute (a private, Chinese NGO)
Advisors
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John Gibbons, Two-term Science Advisor to President Clinton
Phil Samper, former President of Sun Microsystems
Zhou Dadi, Emeritus Director of Energy Research Institute
DEED, Ltd.
Dalian East JV Partner
A Chinese Engineering and Marketing Leader
 100% Private
 57 staff
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38 Engineers
8 Senior Engineers
3 PhDs
2005 Revenues $20M
Projects in a dozen provinces
Designed 550 MW
Built 72 MW
89 MW under contract
Experienced also in metals, MSW,
biomass, and methane
DEED, Ltd.
DEED, Ltd.
Offices
Projects
DEED, Ltd.
Design Experience
Shanghai Wan An
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2.5 MW
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Built 2002
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Heat recovery
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Design by Tang Jin
Quan
DEED, Ltd.
Design-Build Experience
Fujian Long Yan Fu Long
Hubei Ge Zhou Ba
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6 MW (turn key)
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12 MW (turn key)
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Built 2005
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Built 2003
DEED, Ltd.
Design-Build Experience
Jin Mao
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15 MW (turn key)
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Built 2004
DEED, Ltd.
Overall Structure
Dalian East
42% Equity
Strategic Investor
Dalian, China
Equity
Construction
Contract
DEED Holding,
41% of CJV Equity
Cayman Islands
GEI
17%
Equity
Cooperative JV
DEED Ltd.
Passive
Dalian,
Liaoning Province, China
ERPA
Finance, design, construction
Carbon Trader
PPA, CERs
Mixed
Equity/Debt
PPA and/or CERs
Cement
Plants
Common Stock
Finance/design/
construction
DEED, Ltd.
Who Does What?
DEED
Holding
Dalian East
• Designs, builds
plants under turnkey
contract with CJV
• Receives dividends
from CJV
GEI
•Does CDM work under
contract to CJV
• Receives dividends
from the CJV
• Raises foreign capital
• Places debt & equity
with CJV
• Receives P&I,
dividends from CJV
Cooperative JV
DEED Ltd.
• Markets
• Receives investment
• Does customer DD
• Manages construction
contracts
• Collects payments
• Pays P&I
• Distributes dividends
Customers
• Make fixed payments
(pays O&M) or metered
payments (no O&M)
• Receives CER
payments
DEED, Ltd.