Bejing, China [RenewableEnergyWorld.com] China Holdings, Inc. announced that it has executed its fourth development contract for the exclusive right to develop and construct a biomass energy plant with a capacity of 50 megawatts (MW).
The agreement was made by China Holdings through its China Power subsidiary with the Government of Ongniute County in Inner Mongolia. This deal brings the company’s total of projects under development to 270 MW in including four 50-MW bioenergy plants and a hydropower project of approximately 70 MW.
The Ongniute government will secure all necessary government approvals and ensure the supply of all required utilities for the two new bio energy plants and China Power will be responsible for obtaining all required financing for the plant and operating the plant with the most advanced technology available. The construction of the plant is estimated to take approximately two years. In addition, the Ongniute government has agreed to ensure that the plant is not subject to income taxes for its first three years of operation and then subject to a tax rate of no more than 12.5 percent for the following three years.