Business introduction

Energy Management Contract (EMC)

Energy Management Contract (EMC) is a new market-based energy saving mechanism developed by Western countries in the 1970s. Its essence is to pay for the full cost of energy-saving projects with the reduced energy costs. This allows customers using future energy-saving benefits to upgrade the plant and equipment and reduce current operating costs; the energy-saving service companies and energy consumption organizations agree in contracts with the targets of energy-saving projects, the energy-saving service companies provide the necessary services to achieve energy efficiency goals, and the energy consumption organizations pay for the investment and reasonable profits of the energy-saving service companies with the saving energy benefits.

Energy Management Contract (EMC) Business Model of China Agroforestry Low-Carbon Holdings Limited

    The Company uses the whole industry chain model “Energy + equipment + services”, designs comprehensive energy solutions according to the different energy needs, replaces traditional energy sources with green biomass fuels, reconstructs existing heating systems of customers for energy-saving, changes energy structure, improves energy efficiency and achieves the energy conservation and emission reduction targets for customers. When the project starts running, the Company and customers share the energy-saving benefits and achieve win-win situation.

Specific methods of operation:

1. The Company provides the customer with a complete solution;

2. Biomass boilers and system-related equipment are financed and constructed by the Company, and the civil works are financed by the customer;

3. When the project completes, the full boiler system will be operated by our company, the biomass energy is supplied by the Company during the period of cooperation, and the energy-saving benefits are shared by both parties;

4. When the period of cooperation expires (8-10 years), the full boiler system will be transferred to the customer for free, and the Company provides technical support and services.

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