OREANDA-NEWS. June 22, 2012. From Baosteel Engineering Shanghai Baosteel Energy Technology Co.,Ltd.'s first trial in water contract energy management business model to the first contract energy management demonstration project's accomplishment today, for more than a year, Baosteel Energy actively explores the practice of energy saving new business model and takes great efforts in building energy-saving industrial platform, reported the press-centre of Baosteel.

Up to now, through energy management contract model, Baosteel Energy has saved more than 100000 tons of standard coal for customers,i.e.enough natural gas for 200,000 ordinary families in a year.

To further build Baosteel Energy technology integration, the combination of production and finance and R & D achievement industrialization platform, in 2010 Baosteel founded Shanghai Baosteel Energy Technology Co.,Ltd.. It takes full advantage of the Baosteel many years' experience in the energy technology research and development application. With energy management consulting as the guide and contract energy management as business model, it specializes in energy service integrated solution. It both provides professional support for Baosteel's exploration of new energy-efficient business model and reduction of energy consumption and popularizes the excellent energy-saving technologies and management models so as to bring good environmental and social benefits.

Baosteel Energy has been set up for more than a year and has implemented 27 contract energy management projects. The projects cover waste heat recovery, fan and pump system energy saving, lighting energy-saving, heating furnace transformation, building energy-saving, business operation and project management. The technical planning capacity is gradually formed and operations are both inside and outside Baosteel, with good implementation effect. For example, after the implementation of Baosteel Energy's first building energy management contract project - Magnolia Hotel project, the actual operation energy consumption value decreases by 32.1%, not only 7% beyond the planned target, but also effectively reducing carbon dioxide emissions. The project management has made double harvest in capital income and energy saving.

For the energy management contract new business models, Baosteel Energy makes in-depth research in configuration of the key resources, energy-saving technical solution and the choice of financing channel, which improves business operation ability and project management capacity building and forms risk control and system operation systems and processes. At the same time contract energy management market mechanism evokes its function of external drive, speeds up the energy saving space potential tapping and accelerates the new technology development and application, fosters the ability of energy-saving team and advances Baosteel energy-efficient industrial process.

Contract energy management model requires energy companies' investment in enterprises' energy-saving projects in advance and the supply of a full range of energy efficiency service. For this, Baosteel Energy actively explores innovative models of the combination of production and finance. In October last year, in cooperation with Shanghai Pudong Development Bank, with Baosteel stainless steel 750 blast furnace steam turbine cooling tower ppwer saving renovation project as the carrier it carries out the exploration of contract energy management and financing.Project investment is recoverable in that year, which can accelerate cash flow and create conditions to expand the scale of contract energy management projects.