Mitsubishi Hitachi Power Systems (MHPS) and Zhejiang Feida Environmental Science & Technology (FEIDA), the manufacturer of electrostatic precipitators (ESP) in China, have signed an agreement to launch a full-fledged environmental business joint venture.
As part of the agreement, the two companies will jointly establish a new company that will focus on environmental system business development.
The joint venture company will provide comprehensive flue gas treatment solutions for the removal of PM2.5 particulate matter and other pollutants emitted by coal-fired power plants and other sources.
Tentatively named Zhejiang Feida MHPS High-Efficiency Flue Gas Cleaning Systems Engineering, the new Hangzhou-based company will initially employ around 40 people and will be capitalised at $6.66m (approximately CNY680m).
The equally-owned joint venture will be headed by an executive from MHPS and is expected to begin operations this autumn.
Additionally, the joint venture will develop and market technologies and products in China, using high-performance environmental system technologies from parent companies, intended to eliminate airborne pollutants such as PM2.5 fine particulate matter.
In addition to supporting the new joint venture's business development, MHPS will contribute to the efforts of China to address environmental issues by enhancing FEIDA's and MHPS' relationship.
Advanced low-temperature ESP technology will be contributed by FEIDA for the joint venture.
China, which has installed capacity of coal-fired power plants of approximately 750GW, is planning to increase coal-fired power generation capacity by 50GW to 60GW per annum.
The government is also strengthening emission control rules with much focus on wide-spread adoption of high-performance pollutant removal systems.
Image: Illustration of high-performance smoke dust removal systems. Photo: courtesy of MITSUBISHI HITACHI POWER SYSTEMS.