- China's largest producer of acetic acid returns to China Energy Recovery for greater energy efficiency

- Multi-million dollar energy costs can be potentially saved annually

SHANGHAI, China, Jan. 27 /PRNewswire-Asia/ -- China Energy Recovery, Inc. (OTC Bulletin Board: CGYV - ISIN: US16943V2060; 'CER'), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, announced today that it has recently entered into an EPC (Engineering, Procurement and Construction) contract for a retrofit project (the 'Project') to build a new low temperature heat recovery system (the 'System') for the sulfuric acid plant of Jiangsu Sopo Chemical Group ('Sopo Group'). Sopo Group is a leading Chinese integrated chemical company and China's largest producer of Acetic Acid (Glacial), one of the major basic chemicals for industrial uses.

The Project is arranged as a sales-type lease which offers the company higher margin compared to regular EPC projects. The currently determined total contract value amounts to RMB60.8 million (roughly $8.9 million USD at the prevailing exchange rate on the date of the release) with a 4-year installment payment term. The main low temperature heat recovery system for the Project will be specially procured from MECS, Inc., a leading US-based company specializing in sulfuric acid manufacturing equipment and systems and formerly part of Monsanto. CER partners with MECS to provide the low temperature heat recovery systems for sulfuric acid plants in China.

The primary purpose of the System is to utilize the waste heat released from the sulfuric acid production process and to use it to supply the main facilities with the hot steam, which would otherwise have to be supplied from coal-fired generators. Through this process, not only are energy costs significantly reduced but Sopo Group is able to meet strict environmental protection requirements. It is estimated that upon completion in early 2010, the System will help Sopo Group save roughly 17,000 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of hot steam, and thus prevent the release of approximately 45,000 tons of carbon dioxide emission each year. Moreover, approximately 200,000 tons of cooling water will also be saved annually.

'Sopo Group has been a long-time customer of CER,' stated CER's CEO, Mr Qinghuan Wu. 'We are happy they continue to see the benefits that waste energy recovery can provide and have returned to us to build the new project.