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Members of the FFM Team FECC Finnish Environmental Cluster for China Finnish Experts Jari Aaltonen, Aaltonen Consulting Ltd, Team Leader Eero Huttunen, Water Expert,Program Manager, Technopolis Plc Maija-Leena Rissanen, Environmental Monitoring Expert, Director, Business Development, Vaisala Plc Yu Wang, SWM Expert, Helsinki University of Technology. Fact Finding Mission (FFM) in Hangzhou-Suzhou FECC Team Ms. Jolene Hu, Project coordinator, Shanghai Office FECC Advisors Mr. Jason Xiao, The JLJ Group Potential Pilot Projects Hangzhou Academy of Environmental Science (HAES) Mr. Shen Xiao Dong, Assistant Principal Ms. Xu Hailan, Director, Science Research Center of HAES Suzhou Environmental Protection Bureau (EPB) Mr. Liu Wen Bao, Vice Director of Suzhou EPB 2 Hangzhou DADI Environmental Protection Co Ltd POTENTIAL COOPERATION PROJECTS IN HANGZHOU Company established in 998 Registered capital RMB 0 million Over 00 employees Specializes in collecting, disposal and utilization of various kinds of solid wastes Business areas: Hazardous Waste Treatment (Incineration) E-Waste Treatment: TVs, PCs, refrigerators, WMs Medical Wastes Treatment Industrial Waste Water treatment On-line water monitoring Real-time air quality monitoring 3 4 Hangzhou DADI Environmental Protection Co Ltd Potential cooperation projects Cell Phone Battery Recycling Plant Investment: RMB 8 million Project is currently under decision making Refrigerator recycling plant Phase : 000 items/annum Phase 2: 60 000 items/annum Current collection fee: RMB 73 per item! Information from potential Finnish suppliers will be first submitted to DADI, afterwards tender documents are available in FECC. Mr. Hong Liang, Vice General Manager, Hangzhou DADI Environmental Protection. Tel. +86-7-2899708 Mobile: 0380790744, email: hongliang808@sina.com Address: 347, Shaoxing Road, 30004 Hangzhou, China Potential suppliers in Finland: Samill, Akkuser, Kuusakoski, L&T. Zhejiang Narada Power Source Co. Ltd, Hangzhou Battery products are used in Telecommunications, Railways and Military industry 0% of the production goes abroad, 0% used in China Production capacity 3 million kwh/annum Clients: Nokia, Vodafone, Motorola, Siemens Lead Acid Battery Recycling: Life-cycle of the batteries: 3- years Volume: 000 tons/annum Overall volume:0 000 tons Price of the lead: RMB 700 per ton Hazard treatment license is required for collection of old batteries from their clients Customer needs: Technologies used in lead separation Logistic management in battery collection The use of recycled lead in battery manufacturing 6

Zhejiang Narada Power Source Co. Ltd, Hangzhou Hangzhou Dazhou Resources Recycling Co.Ltd Status of the lead recycling project FS will cover technologies used in China There are currently 2 battery treatment plants in China that have been imported from abroad Narada is applying a license from Environmental Protection Bureau Technology import is supported by EPB Collection system already built FS will be completed by the end of 07. Tender invitation document will be ready by 08. Narada is keen on to know more on Finnish waste law and companies having expertise in battery recycling, LOIs are accepted! Contact details: Mr. Wang Yueneng, Zhejiang Narada power source co. ltd, Tel. 86-7-28806697, Mobile: 0396826363, email: wyn@narada.biz, www.naradabattery.com Potential suppliers in Finland: Kemira (KIES), Samill, Akkuser, Kuusakoski, L&T Established in 993 Specialized in battery and electric appliance recycling and treatment employees Cell Phone Battery Recycling Plant Investment: RMB -0 million for the Phase FS has been done Capacity of the plant:-30 tons/month in the beginning As of now, there are no companies in China that can treat cell phone battery waste! Collection system is crucial for investment Collection area: All over the China! Logistic costs are % of the battery price Technical problems: 00% removal of PCB required! If Government approves the FS they will build a plant ASAP! Reference plant type investment Areas of cooperation proposed: Collection and sorting system for wasted batteries needs improvement Hangzhou Dazhou Material Recycling Co Ltd is keen on to establish JV in cooperation with Finnish companies Potential Finnish Suppliers: L&T, Kuusakoski, Samill, Akkuser 7 8 Landfill capacity: 2600 tons/day 7 million tons of MSW filled Old landfill will be closed 07 New landfill has started in 03 Capacity of the new landfill 22 million tons Life time of the landfill is 2 years Leachate Treatment Plant Leachate treatment capacity: 00 tons/day Investment: EURO 3 million NH4-N removal system is required Standard requirement for Nitrogen output: 2 mg/l Leachate will be discharged to WWTP owned by the municipality Design phase has been done already by local company (China Huabei Academy of civil design) Municipality is financing the investment for the N-removal Parameters for the New Leachate Treatment Plant INPUT: COD: 000-0 000 mg/l, BOD: 000-6000 mg/l, N:0 mg/l, ph: 8., : 800 mg/l OUTPUT: COD < 00 mg/l, BOD< 300 mg/l, NH4-N: 2 mg/l, ph: 9, : 400 mg/l for tender documents Mr. Xu Huijun, Hangzhou Solid Waste Treatment Co. Tel 86-7-8823270, email: xhj24@sina.com, www.cnlandfill.com Potential Finnish Suppliers Kemira (KIES), Envistone. 9 0 Biowaste treatment plant Biowaste capacity: 60 tons/day Investment: EURO.6 million Bidding will be opened in the near future Big scale transfer sites World Bank project Investment 6 million EURO/each Landfill Phase 2- CDM project Mr. Qin Zhenjun (Mobile 86-38800702) Tendering documents http://hzxzfw.hz.gov.cn/xzfw/index.shtml -in chinese Rural Waste Water Treatment in Hangzhou District Hangzhou Municipal Agriculture Office Government has plans to implement rural waste water management programme in the Hangzhou district Objective is to install waste water treatment plants (investment, operation and maintenance) in 4000 villages by 0 village based rural waste water treatment projects will be implemented in 07 alone! Government policy for rural WWTP investments 30% subsidy % allowance if villages can meet the environmental standards Boundary conditions for the WWTPs Effluent volume: m3/house/day Scale of the village: 0-60 houses Status of the project FS will be completed by the end of August 07 Pilot projects from Finland are welcome! Ms.Jolene Hu, FECC, Finchi innovation Center,Tel. 86-2604227, Mobile: 86-39604844, email: jolene.hu@fecc.fi Potential Finnish Suppliers: UPONOR, GreenRock, Raita Environment, Wavin-Labko. 2 2

HUANGSHENG PAPER CO Ding Li Group Production is based on recycled newspaper (97-98%) Production: 00 000 t/a Overall figure in Hangzhou area: million tons/annum Sludge output: % of the annual capacity, 2% of the sludge will be used for cardboard manufacturing and 3% will be incinerated, Sludge composition: water: 70% and solids:30% Current problems COD: 300 mg/l, The objective is the 30% reduction of COD by 2 Customer needs Sludge dewatering system is needed in order to increase energy efficiency of the incineration Biological treatment of the pulping process waters for removal of COD Ionization measurement of the pulping process water Potential Finnish suppliers: Kemira, Poyry, YIT Established in 0 60 employees Business areas: Waste water management integrator Provide monitoring systems for WWTPs They purchase monitoring equipment abroad and put their own HW & SW into their products DLG monitors parameters such as water levels, flow of direction, COD. Customers: Municipal and industrial WWTPs Cooperation areas: Water quality monitoring Potential suppliers in Finland: Vaisala, 3 4 Linan city municipal WWTP Background Capacity of the WWTP: 60 000 tons/day Phosphorus and Nitrogen Removal is not included in operation Nutrition level to TAI lake is very high. Government has asked to reduce N and P levels Phase : 00 tons/day ( 400 000) Phase 2: 30 000 tons/day (under planning) Joint Project between Linan City and Shejiang University FS will be completed by August-September 07 Main partners: State Environmental protection Bureau, Ministry of Construction, Academy of Sciences of the State Potential Finnish suppliers Kemira water, Metso, Poyry etc. Linan City Municipal WWTP Standards for N and P removal Standard Class I Mg/L Current Eff. Mg/L New target Mg/L COD 00 COD 30 COD 70 BOD BOD 0 BOD 40 TN TN 30 TN 6 TP 0, TP 3 TP 0,6 0 6 Suzhou Environment Protection Bureau POTENTIAL COOPERATION PROJECTS IN SUZHOU 7 General Situation in Suzhou In Suzhou there are 6.6 million inhabitants Objectives in pollution control for industries SO2 reduction by % and COD reduction by 0% Water pollution prevention is priority in Suzhou They can meet 80% of the government environmental standards Household sewage contributes 0% of the overall waste water Tender documents available in internet related to SO2 removal Waste streams Industrial waste: 6 million tons Hazardous waste: 7 000 tons Fly-ash is used used for cement manufacturing Particles are used for brick manufacturing Regulations for waste collection doesn t exist at the moment Needs 000 villages need rural WWTPs Needed N, P removal technology for municipal WWTP Potential needs for landfill leachate plants for at least landfills Government helps to promote pilot projects in terms of finance and policy level. Potential for Finnish suppliers and pilot projects. Further Information: Mr. Liu Wen Bao, Vice Director, Suzhou Environmental Protection Bureau,70 Daoqian St. Suzhou Jiangsu, 2002 China. Tel. +86-2-62893, Mobile: 86-3669888, email: sotome@63.com Mr. Tang Jianfei, Director, Suzhou Solid Waste Management Center, Tel. 86-2-62208, email: tang_jf@hbj.suzhou.gov.cn 8 3

Suzhou Municipal Sewerage Administration Suzhou Municipal Sewerage Administration Background Capacity of the WWTP plant: 40 000 tons/day Phosphorus and Nitrogen removal requirements: mg/l BOD COD TP TN Inf. 4 400 40 20 Eff. 6,2 40,3 23 7 Class II standard 30 Class I 30 9 Investment for the N and P removal Budget: RMB 40 million FS phase 6/07 They apply permit from the government bureau e.g EPB After permit has been approved they will publish tender document By the end of 07 design phase will be completed Tender document will be published by /08 : Mr. Huang Chen, Deputy section chief, Suzhou Municipal Sewerage Administration, Address: 908 Tong Jin South Rd Suzhou 2004. Mobile: 86-67888, email: sp02369@pub.sz.jsinfo.net Suzhou Industrial Park Qingyan Hong Kong & China Water Co Ltd Background information Overall area 288 km2 Capacity: 300 000 tons/day Phase -996: RMB 0,76 billion (00 000 tons/day) Phase 2-0: RMB 0,2 billion (0 000 tons/day) Equipment: 38 pumping stations, real-time COD and TOC monitoring Foreign technology: Turbo filters (DK), Automatic sludge separation (De), pumping systems (Se), Sedimentation tanks (Ru & Ukraine), TOCanalysers (Japan) Mid-water recycling: water is being used for irrigation and process water for the power plant located near-by. Funding: 6% from Singapore, 3% from China The target capacity: 600 000 tons/day New projects 0 000 tons/annum Investment: RMB 300 million, 70% equipment for tenders Mr. Guan Yongnian, Director, Sewage Treatment Works, Suzhou Industrial Park, Qinyuan Hong & kong China Water Co, Address: 3 Jichang Rd, Tel. 86-2-628332, Mobile: 86-3826766, email: copeter@sina.com Tender docs will be out in the end of 07 Potential Finnish Suppliers: YIT, POYRY, LEMCON, Kemira, Sarlin-Wabio, various pump suppliers, Vaisala. 2 Everbright Environmental Energy (Suzhou) Limited Background information China Everbright International Limited Listed publicly in Hong Kong stock exchange Established in 04 Capital invested by Chinese government Waste water management is one of the business units Personnel: 00 out of that 00 people in Suzhou 3 projects completed, such as biogas plant. WTE plant and HSW landfill New projects () Sludge treatment project is under planning E-waste collection and treatment Car collection and metal recycling Leachate treatment Education Chinese were keen on to establish cooperation in R&D and education and they are waiting cooperation proposals from Finland FS are under preparation at the moment for those areas Mr. Cai Shuguang, General Manager, Everbright Environmental Energy (Suzhou) Limited, Address: 2 Qizi Village Mudu Town wuzhong Area, Suzhou 20, PRC, Tel. 86-2-6662298, Direct. 86-2-66680, Mobile: 86-38488080, email: caisg@ebep.com.cn, www.ebep.com.cn Potential Finnish Suppliers: Kuusakoski, Akkuser, Kemira, YIT, Lemcon, Envistone 22 Everbright Environmental Energy (Suzhou) Limited Status of the investments Feasibility studies FS done by State Academy of Environmental Sciences Opportunities for Finnish universities and companies CEI welcome Finnish universities and consulting & engineering companies for the design phase Design time table: 3- years, Initial Master Plan will be ready by 0. It is also possibility for Finnsih companies to join for the Lay-out work, but this need to be contacted directly to state academy of environmental sciences Suzhou government has a plan to build Suzhou Everbright Environmental Industry zone as a example in environmental zones in China R&D department of Suzhou Everbright and Finnish companies and universities can establish cooperation projects Sludge treatment is an area they emphasized, If they can find effective technology & partners they want to start this immediately Xerox and Fujitsu are already cooperating with Everbright Investments The total investment of the project in Suzhou Environmental Industry Zone is about HK$. billion Summary of the pilot projects Dadi: waste refrigerator disposal process, 60 000 pieces/year, removal Freon safely, break up and foam separation systems (further contact can start Dadi: metal smelting from WEEE/waste battery (further contact can start Narada: waste battery/accumulator treatment process (further contact can start Dazhou: waste mobile phone cells treatment process (further contact can start Dazhou: consulting service for company management Tianziling: leachate treatment construction project (tender bidding 07, http://hzxzfw.hz.gov.cn/xzfw/index.shtml) Tianziling: Bio(food) waste treatment technology (Phase I, 0 t/day designing, Phase II under planning), construction project (need to follow further info.) Hangzhou: big-scale transfer sites, equipment, transportation trucks purchase (ongoing) Tianziling: landfill gas utilization, CDM project (ongoing) Tianziling: landfill closure construction (tender bidding 07, http://hzxzfw.hz.gov.cn/xzfw/index.shtml) Hangzhou agricultural office and sub-county agricultural offices: 2-3 households on-site wastewater treatment facility (further contact can start Hangzhou agricultural office and sub-county agricultural offices: 40-0 households on-site wastewater treatment facility, COD, nutrients removal (further contact can start 23 24 4

Summary of the pilot projects Hangzhou agricultural office and sub-county agricultural offices: sludge treatment technology (further contact can start Hangzhou agricultural office and sub-county agricultural offices: biogas utilization (further contact can start Hangzhou municipal WWTP: N, P removal projects (urgently) research project: N, P removal technology Suzhou industrial park WWTP: phase II equipment purchase (tender bidding 07) Suzhou environmental industrial zone: sludge treatment plant (jointly or owned) (further contact can start Suzhou environmental industrial zone: WEEE treatment plant (jointly or owned) (further contact can start Suzhou environmental industrial zone: waste car etc. treatment process (further contact can start Suzhou environmental industrial zone: environmental education center (further contact can start 2 Conclusions How to establish business cooperation with Chinese counterparts? Suggestions by Finnish Experts Finnish companies should start cooperation already during FS phase It is important to develop business models that include R&D, application of new technologies and business operations. The model must also consider the use of national financing instruments of both governments and the use of international financing in development of pilot projects and reference plants. Finnish Government contribution for development of pilot and reference projects is crucial. References are important Cooperation with the local companies is important 26 Conclusions How to establish business cooperation with Chinese counterparts? Suggestions by Science & Technology Transfer Exchange Bureau & EPB Economical issues are critical for them to select technology or cooperation partners. Cost estimations have to cover both capital and maintenance costs. This work can be done through cooperation between research institutions and companies from Finland and China If the technology meet their requirements and the costs are acceptable, the cooperation can start anytime Local authorities promised to organize financial and policy support for the good pilot projects (DADI and chemical factory cases) They also welcomed investments from the Finnish companies 27 FECC Finnish Environmental Cluster For China www.fecc.fi Thank You!