Beijing Energy International and Xuan Steel Signed A New Energy and Comprehensive Energy Cooperation Framework Agreement

On November 17, 2021, Zhang Ping, Chairman of the Board of Directors of Beijing Energy International met with Wang Hongbin, Party Secretary, Chairman and General Manager of Xuan Steel in Yanqing District, Beijing. The two sides discussed about comprehensive and in-depth strategic cooperation and signed a framework agreement on new energy and comprehensive energy cooperation. Zheng Aijun, Vice Chairman and Executive Deputy General Manager of Xuan Steel, Li Jie, Finance Director, Liu Jin, Director of Equipment and Energy, and Li Guoguang, Deputy Director of Transformation and Development, Jia Geng, Vice President of Beijing Energy International, He Kun, General Manager of Northeast Branch Company and other relevant personnel attended the meeting.

During the meeting, Zhang Ping welcomed Wang Hongbin and his delegation, and introduced the development and planning of Beijing Energy International. He said that Beijing Energy International, as a red-chip company listed in Hong Kong, fully tapped its advantages in market-oriented mechanism while embracing high-quality and rapid development. He said that Xuan Steel, as a century-old steel enterprise, had achieved remarkable results in transformation and upgrading, and would continue playing a key role to meet the strong energy demand with its abundant resource and geographical advantages. He stressed that Beijing Energy International had a deep bond with its parent company HBIS, and Beijing-Tianjin-Hebei region was the preferred investment destination of the company, whereby the two sides enjoyed a very broad cooperation potential. It is hoped that through this agreement, the two sides will further strengthen ties, give full play to their respective advantages in technology and resources, boost project development such as photovoltaic, wind power and power distribution, carry out feasibility study on emerging industries such as energy storage, hydrogen production, combined cooling, heating and power generation, and help Xuan Steel to achieve energy transformation and build the megawatt new green energy industry demonstration base in Zhangjiakou City, Hebei Province.

Wang Hongbin introduced the transformation and development of Xuan Steel, and said that the company was a century-old national key, large-scale steel enterprise. In recent years, it has carried out in-depth transformation and upgrading, driven by the dual carbon goal and resource integration efforts, it has vigorously galvanized the development of diversified business segments, built a new business model featuring innovative, coordinative, green, open and sharing, and strived to build itself into a top-rate steel and high-end equipment manufacturing enterprise, and a model enterprise of HBIS and the whole industry in terms of transformation and upgrading. He pointed out that Beijing Energy International was a strong player in new energy and had registered remarkable growth over the past year. It is hoped that through this cooperative move, the two sides will synergize their strengths, foster a strategic partnership, build a model project of new energy, attain the dual carbon goal and work together for mutual benefit and win-win outcome.

After the meeting, the two sides signed a new energy and comprehensive energy cooperation framework agreement, according to which, Beijing Energy International will invest in the construction of photovoltaic, wind power, distributed power and other new energy power stations in Zhangjiakou City, using the idle land of Xuan Steel and the rooftop of factory buildings. The generated power will be serving its own use, and the surplus will be connected to the grid. The scale of the power stations to be invested is 200MW ground photovoltaic, 200MW wind power and 350MW rooftop distributed photovoltaic, with an annual power generation of about 1.4 billion kWh and a total planned investment of about 4 billion yuan. Besides, the two sides will jointly set up a research center for new energy development and comprehensive utilization, research and develop new energy sources, including comprehensive utilization of hydrogen in steel enterprises, direct supply technology of green energy, etc., and jointly translate new development concepts into green and clean energy.