Tuesday, November 18, 2008

China Energy Recovery Inc. (CGYV.OB) Signs Waste-to-Energy Plant Pact, Reports Solid Backlog of Orders for 2009

Difficult economic times often make for strange bedfellows. Environmentalists, long labeled as “fanatics,” are now finding favor as the corporate world discovers environmental efficiencies in manufacturing can actually lead to a better bottom line and cost savings. In past years, when profits were flowing nicely, there was little need to look for new ways of doing business, Now, as the world economy slows to a crawl, companies are searching for any savings they might find. Locating a company that can help in this regard is a solid thought for profit opportunity, making the leap to an environmentalist point of view is the only hurdle.

China Energy Recovery Inc., a waste to energy plant designer and builder, works to design waste to heat energy recovery systems. In most instances, the company partners with construction companies to build out the facilities it designs.

The company has been very well received by industrial manufacturers seeking to meet environmental regulations while recovering lost energy from the manufacturing process. The company’s latest project, a straw pulp alkali recovery system to be located in China, will generate 12 megawatts of electricity for a paper making facility and may be be one of the world’s largest.

Although the company has a general direction of servicing the Chinese waste to energy marketplace, it has found solid support from customers located in Egypt, Turkey, Viet Nam and Korea. Additionally, support and funding of the company’s China project by the Asian Development Bank bodes well for the company’s ability to meet stringent standards set by the lending agency.

It is, perhaps, this point that makes China Energy Recovery an attractive investment opportunity in a world economy struggling to find lending capital and a solid footing. Environmental investments through government mandated dictums won’t let up as a result of a poor world economy and find favor from world banking agencies with an eye toward the future rather than the present. Add in inherent cost savings from environmental efficiencies and the company appears to have a solid base to work from when selling to new customers.

The company reports, through the 2009 period, it has a solid backlog of projects valued at $19 million with expectations of that figure rising. The need for cost savings in a time of poor growth is simply too great a need to ignore and companies are willing to spend for them. As much as the corporate world enjoys regulating environmental lobbyist to the back burner, it does appear that the efficiencies involved in their environmental statements are now being born out in a time of financial uncertainty. China Energy Recovery appears to be lined up to benefit greatly by this happening and positioned to profit nicely.

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