Sector and Others

 1. Introduction to the Project

1.1 Project Background

1.1.1 Project Introduction

Finland is located in North Europe. 1/3 of its territory is located in the Arctic Circle. It is smaller than a metropolitan of China in the population and area. In such a tranquil country, pollution was serious and a lot of experience has been concluded in the prevention and control. Long time ago, in some big cities, when snow fell on the ground and wall, it became thicker grey a couple of hours later. Nowadays, the snow can keep white after it falls on the ground or wall. Finland is similar to the east and north of China: in the winter, it is cold and the energy consumption for heating is high; the energy is short and the energy should be imported to meet its demand, so the energy efficiency ratio should be improved. The project introduces the current technology of Finland to bring benefits to the environmental protection industry of China.

BioGTS provides a series of innovative technologies and services, which can convert the organic wastes into the precious resources, design and build the energy conservation buildings and take the integral design and project schemes to build the sustainable ecological cities. The project is planned to introduce the technologies of BioGTS to produce the biological natural gas and biological diesel and carry out the construction of the ecological city.

1.1.2 Market Analysis

(1) Present situation of development of the natural gas industry in the world

According to the statistics, the primary energy consumption in 2012 is 124.8×108t oil equivalent, 1.8% more than that in 2011. Viewed from the energy consumption structure, some fossil energy sources such as oil, natural gas and coal, etc. are still the most important energy sources in the world at present. The oil consumption accounts for 33% of the primary energy consumption in the world, 24% for natural gas and 30% for coal.

The data of 2016BP Statistical Yearbook of Energy in the World show: the natural gas output in the world in 2015 is 3538.649969 billion m3, a year-on-year growth of 2.18%. In 2010-2015, the daily output of natural gas in the world keeps the tendency to increase as a whole.

The natural gas output in the world in 2015 is equivalent to 3538.649969 million tons of crude oil, a year-on-year growth of 2.2%.

 

(2) Development trend of the natural gas industry of China

 

With the rapid development of the national economy of China, the improvement of people’s living standard and the pressure of environmental protection, the natural gas industry of China faces a rare development opportunity. With the progress and development of the theoretical understanding and prospecting techniques of natural gas accumulation, it is predicted that the natural gas industry of China will still continuously keep the trend of rapid development in a quite long period. According to the forecasting result of IEA in 2012, the annual output of natural gas of China will have been more than 2000×108m3, reaching 2170×108m3 by 2025; it will have been more than 3000×108 m3, reaching 3180×108 m3 by 2035.

(3) A huge demand for natural gas in Jilin Province

For long time, the primary energy consumption of Jilin Province has been focused on coal, accounting for more than 70%, so it is urgent to improve the proportion of natural gas. Therefore, Jilin Provincial Party Committee and Jilin Provincial Government present the “Gasified Jilin Province” Strategy. It is planned that the total natural gas utilization in the whole province will have been 10 billion m3 by 2020. Jilin Province started using the natural gas in 1998 and its proportion in the primary energy has been less than the average level in the whole country. In 2013, the natural gas use in the whole province is increased to 2.7 billion m3, still less than the average level in the whole country. For the complex international and domestic reasons, the obvious contradiction exists between the huge demand for natural gas and the limited supply in the “Gasified Jilin Province”, which creates a huge market for the biological natural gas.

(4) Development prospect of biological diesel

 

Biological diesel is the liquid fuel whose main composition is long-chain fatty acid methyl ester made through the esterification or ester exchange process of renewable oil and fat resources (such as animal and plant fat, microorganism fat and waste catering oil, etc.). It is called the “green diesel” and its property is similar to that of the common diesel and it is the good-quality petrochemical fuel substitute.

 

Compared with Europe and the US, the starting of the biological diesel of China is late, but the development speed is high and some of the scientific research achievements have reached the international advanced level. After entering the 21st century, the Chinese government has attached great importance to the development of oil substitute fuels and established a lot of policies greatly promoting their development. In the “10th Five-Year Program”, the development of liquid fuels is determined as the national industrial development direction. In the “11th Five-Year” National Scientific and Technological Tackling Plan, the development of the biomass energy including the biological diesel is listed on the top.

In recent years, a number of domestic biological diesel enterprises with the annual productivity of more than 10 thousand tons and independent technological property rights such as Hainan Zhenghe Biological Energy Co., Ltd., Sichuan Gushan Oil and Fat Chemical Co., Ltd. and Fujian Zhuoyue New Energy Development Co., Ltd., etc. have occurred, the products have reached the quality standard of the same type of foreign products and all the properties are equivalent to those of 0# diesel. In 2010, the total output of biological diesel of China is 0.5 million tons and it is predicted that the productivity of biological diesel of China will have been about 9 million tons by 2020.

The biological diesel is still at the starting stage in both China and the world. With the shortage of energy in the world and people’s increasing importance attached to the environmental protection, the development and research of biological diesel, such a green and environment-friendly fuel is not only one of the effective approaches to develop the new energy but also can make full use of the land resources of China, adjust the crop structure of China and promote the agricultural development. With the competitiveness of the biological diesel continuously improved and the acceleration of the governmental support and the development of the automobile industry in the world, the research and application prospect of the biological diesel will become broader.

1.1.3 Advantageous Conditions of Project Construction

(1) Policy advantages

In order to resolve some problems of energy conservation and substitution and green and environmental protection, etc., the Chinese Government has established a series of policies and measures and some scholars and experts have been devoted to the research and advocating of the biological natural gas and biological diesel. In the Renewable Energy Law of the People’s Republic of China implemented as of January, 2006, it is clearly presented that the country makes great efforts to support the development of the biomass liquid fuels with biological diesel as the main part and the country provides the special funds and tax exemption or reduction policies.

Since Changchun New Area was founded, a series of policies such as Policies on Promoting the Development of the Strategic Emerging Industries, Policies on Promoting the Innovative Development of Science and Technology, Policies on Accelerating the Assembly of the High-level Personnel and Policies on Supporting the Innovative Development of Changchun New Area, etc.

(2) Location advantages

The construction site of the project, located in Changchun Beihu Development Zone, under Changchun New Area, has the obvious location and transport advantages. Changchun New Area is located in the core hinterland of Changchun-Jilin-Tumen Development and Opening Pilot Zone and geographical center of Northeast China and the important node of Harbin-Dalian Economic Belt and China-Mongolia-Russia Economic Corridor. In the district, Longjia International Airport is the national trunkline airport, some expressways such as Jingha Expressway and Hunwu Expressway, etc. meet here, some trunkline railways such as Jingha Railway and Hada Railway penetrate the whole district, Changchun-Manchuria-Europe International Freight Train has been opened and the sea, land and air 3D transport network has been preliminarily established, so it is convenient to have communication of personnel and goods with other regions of Northeast China, Beijing, Tianjin and Hebei and the surrounding countries of Northeast Asia. The new district, depending on the construction of Longjia International Airport and comprehensive railway freight yard, is building the international airport and international inland port, the “three major channels” to the west, north and south and incorporate to the major pattern of economic development in the world.

(3) Industrial development advantages

Changchun New Area, focusing on the building of the innovative industrial system with the advanced manufacturing industry, modern agriculture and modern service industry as the important points, insists in the coordinated and interlinking development of the four major development zones and preliminarily establishes the industrial development pattern with the prominent important points and distinctive characteristics: in the airport development zone, the emphasis is put on the development of the logistic industry, finance, leisure tourism and health endowment and other modern service industry as well as airport advanced manufacturing industry and it will be built into the pilot zone of airport economy and opening to the outside in Northeast China. In Beihu Development Zone, the emphasis is put on the development of the high-end equipment, photoelectric intelligent, biological medicine, fine food, new materials and energy industries to promote the construction of the international inland port of Northeast Asia, build the international inland port oriented to Northeast Asia and build itself into the strategic emerging industry pilot zone. In Changde Development Zone, the emphasis is put on the development of the health industry, fine food industry, strategic emerging industry and engineering mechanical industry, etc. to build the new urban area suitable to live in and open businesses; in the New and High-tech Zone, the emphasis is put on the development of the new and high-tech industry and high-end service industry to build the functional assembly zone of the new and high-tech industry and high-end service industry. The industrial pattern and development of Changchun New Area will provide the good industrial support for the project.

(4) Personnel and innovative resource advantages

In Changchun New Area are assembled a lot of colleges, universities and scientific research institutions such as Jilin University, Northeast Normal University, Changchun Institute of Optics, Fine Mechanics and Physics of Chinese Academy of Sciences and Changchun Institute of Applied Chemistry of Chinese Academy of Sciences, etc.; in the district, there are 3 national-level engineering labs, 2 national engineering technological research centers, 11 national-level key labs and 50 key labs above the provincial and ministerial levels. The district has 34 national-level innovative parks and bases such as National Patent Navigation Industry Development Experimental Park and National Innovative Personnel Cultivation Demonstration Base; in the district is assembled Changchun Northeast Scientific and Technological Innovation Center built by “1 academy, 4 institutes and 4 universities” including Changchun Branch of Chinese Academy of Sciences and Jilin University, etc., the special technological platforms of photo-electrics, new materials, new energy, biological medicine and ecological agriculture, etc. and public service platforms of governmental affairs, information, finance and personnel, etc. are built.

1.2 Project Construction Contents and Scale

1.2.1 Product Plan and Scale

The project covers an area of 70,000m2, including the building area of 50,000m2.

1.2.2 Construction Contents

The project builds the observation station, lab, prevention and control plant building and other relevant facilities.

1.3 Total Investment and Capital Raising of the Project

The total investment of the project is 500 million yuan, including the construction investment of 150 million yuan and current fund of 350 million yuan.

Table 1: Summary Table of the Total Investment of the Project Unit: 10,000 yuan

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

35000

70

 

2

Interest in the construction period

 

 

 

3

Current funds

15000

30

 

 

Total investment of the project (1+2+3)

50000

100

 

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

It is predicted that the project will achieve the annual comprehensive sales income of 500 million yuan, annual profit of 150 million yuan, the investment recovery period of 3 years (after the tax, including the construction period of 1 year) and the investment profit rate of 33%.

Table 2: List of Major Indexes for Forecast of Financial Benefits

No.

Name

Unit

Index

Remarks

1

Business income

10,000 yuan/a

55000

Normal year

2

Total profit

10,000 yuan/a

15000

Normal year

3

Internal financial yield rate of the investment

%

30

After the income tax

4

Net financial value (Ic=10%)

10,000 yuan

79955

After the income tax (operating period of 12 years)

5

Recovery period of all the investment

A

3

Including the construction period of 1 year (after the tax)

6

Investment profit rate

%

33

 

Note: “RMB 10, 000” in the Table shall be RMB.

1.4.2 Social Evaluation

The implementation of the project is applicable to the industrial development plan of Changchun City. It can greatly promote the local economic development, provide employments, promote the technological progress of the deep-processing products of the district, achieve the industrial upgrading, optimize the industrial structure, promote the local economic development, attract the high-end scientific and technological personnel and international advanced technologies to enter the park, break through and gasp a number of core technologies, with the good effects on the improvement of the local environment and obvious social benefits.

1.5 Cooperative Ways

Joint venture, cooperation

1.6 What to be Invested by Foreign Party

Interviewed for the investment mode

1.7 Construction Site of the Project

Beihu Scientific and Technological Development Zone of Changchun New Area

1.8 The On-going Condition of Project

The businessmen invitation is going on.

2. Introduction to Partner

2.1 Basic Conditions

Project Unit: Beihu Scientific and Technological Development Zone of Changchun New Area

Address: 262 Beiwan West Street, Changchun City (Longxiang Plaza)

2.2 Overview:

Changchun New Area is 17th state-level new area which was established under the approval of the State Council on February 3, 2016. It is next to the main urban area of Changchun City, its main part is located in the northeast of Changchun City, its approval area is around 499 square kilometers, and its jurisdiction covers four zones, including Changchun Hi-tech Industrial Development Zone, Changchun North Lake Science and Technology Development Zone, Changchun Airport Economic Development Zone, and Changde Economic Development Zone.

The OVERALL PLAN OF CHANGCHUN NEW AREA approved by the state has defined the strategic positioning, function layout, key task and development goal of the new area. Its strategic positioning is to create an innovative economic development demonstration area, a key engine for the new round of revitalizing Northeast China, an important platform of Tumen River regional cooperation and development and an advanced area of system and mechanism reform. Its function layout is to build “Two Axes, Three Centers and Four Bases”: “Two Axles” means Harbin-Changchun Strategic New Industry Development Axis, Changchun-Jilin High-end Service Industry Development Axis, “Three Centers” means science and technology innovation center, international logistics center, international communication and cooperation center and “Four Bases” means high technology industry base, advanced manufacturing industry base, airport economic industry base and health & pension industry base. Its strategic task is to promote innovation and entrepreneurship level, strengthen endogenous driving force of development, greatly develop innovative industry system, accelerate the cultivation of three leading industries of advanced equipment manufacturing industry, modern service industry and modern agriculture, build a green and intelligent new urban area, promote urban modernization and internationalization level, promote Changchun-Jilin-Tumen interactive development, accelerate the integration process of Changchun, Jilin and Tumen, actively integrate into and serve “the Belt and Road” construction, accelerate the creation of “Silk Road”, new platform in north line, new door and new passage, and achieve the transition from new area to international free trade zone. Its development goal is strive to fundamentally complete the construction of three dimensional transportation network in the new area, preliminarily clear the external logistics passage for land and maritime joint transportation, increasingly perfect the public service facilities, achieve major breakthrough in reform, innovation and opening cooperation, greatly promote innovation driving capacity and fundamentally create innovative modern industry system by 2020.

Changchun Beihu Scientific and Technological Development Zone, under Changchun New Area, is generally oriented to the important scientific and technological innovation center in Northeast Asia, compound hub international inland logistic port oriented to the free trade zone, important high-end equipment manufacturing, new material and new energy, biological medicine industrial base and the important ecological tourism and leisure zone in the north of Changchun City. The emphasis is put on the building of 2 centers, 1 base and 10 parks. 2 centers-Scientific and Technological Innovation Center and International Logistic Center; 1 base-Advanced Manufacturing Industrial Base; 10 parks-High-end Equipment Industrial Park, Photoelectric Intelligent Industrial Park, Biological Medicine Industrial Park, Asia-Pacific Agricultural and Food Safety Industrial Park, New Energy and New Material Industrial Park, Cloud Computation Industrial Park, International Business Park, Special Logistic Park, Equipment Logistic Park and E-commerce Industrial Park. Efforts are made to actively develop the technological development, cultural exchange, business and financial service, biological medicine, photoelectric information, new energy and new materials, fine and good food, modern logistic and logistic equipment manufacturing industries, etc. Great efforts are made to develop the information, management, insurance and financial service industries related to logistics, further accelerate the infrastructural construction, make all efforts to build the new window, new channel and new platform of the logistic industry in Northeast Asia and build the Northeast Asia international logistic and supply chain hub and logistic equipment manufacturing base, strengthen the regional integration of science and technology as well as finance, accelerate the transformation of scientific and technological achievements, perfect the regional infrastructural construction, improve the comprehensive service functions of the city, enhance the ecological and environmental protection and construction of the wetland park, promote the development of the cultural tourism and sports health industry and build the charming urban area integrating human culture, science, technology and ecology.

Changchun Beihu Scientific and Technological Development Zone is planned to have had the urban construction land of 61.94km2, accommodating the population of 0.2 million by 2020; the urban construction land of 87.27km2, accommodating the population of 0.55 million by 2030.

2.3 Contact Method

Project Unit: Changchun Beihu Scientific and Technological Development Zone

Address: 262 Beiwan West Street, Changchun City (Longxiang Plaza)

Contact Person: Zhang Jingjing

Contact Tel: 0431-89672978    15043075507

 

Contact Method of the City (Prefecture) of the Project:

Contact Unit: Changchun Bureau of Economic and Technological Cooperation

Contact Person: Bo Zhanlin

Tel: 0431-82763933  82765252

Fax: 0431-82763933

E-mail: cc82763933@163.com

Website of the City or Prefecture: http://www.ccmbc.com/

 

 

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