Recently, four ministries including the Ministry of Finance jointly released the Announcement of the List of Clean Heating Projects Proposed to be Sponsored in Northern Regions in 2022 Winter available for social comments from April 27 to May 6. According to the list, 25 cities including Shenyang, Hohhot, Yinchuan, Changchun and Xining were shortlisted as pilot cities for clean heating projects, which, together with the 63 cities already included during 2017 to 2021, amount to a total number of 88 cities.

According to the announcement, the central government will provide fixed-amount of subsidies for clean heating-oriented modifications within the scope of the supported cities for 3 consecutive years, with RMB 700 million for each provincial capital and RMB 300 million for each prefecture-level cities on an annual basis. Municipalities with Independent Planning Status under the National Social and Economic Development shall enjoy the same preferential policies as provincial capitals.

It is reported that the funds will mainly be allocated to multiple clean heating-oriented modifications in relevant cities involving electricity, gas, geothermal energy, biomass energy, solar energy, industrial waste heat, and CHP, as well as to the acceleration of energy-saving modification of existing buildings. Specific modification schemes shall be decided independently by the applicant city subject to relevant requirements for clean heating of the country.

The recent China Clean Heating Industry Development Report 2022 of CHIC shows that, by the end of 2021, the total heating area in northern China reaches 22.5 billion sqm, of which the clean heating area accounts for over 70% at 15.8 billion sqm. Therefore, the clean heating industry has become a key area and aspect for fulfilling the goals of peak carbon dioxide emissions and carbon neutrality.

As the ratio of cogeneration capacity to CHP heating energy increases, new buildings continue to emerge and the heating area increases in China's urban areas, Luen Mei Quantum (600167.SH) is making active responses to the national policies and actions on climate change by promoting the transformation of energy structure, relying on low-carbon clean energy, and promoting the modification of heat source plants for environmental protection. It has become an industrial leader in energy consumption, pollutant emissions and other performances with a clean heating proportion of 100%.

Now, Luen Mei Quantum, as a Shenyang-based industrial leader that proactively promotes its expansion strategy across the country, has its comprehensive energy service system covering various industrial fields, such as clean coal-based intensive CHP, natural gas-based distributed cooling, heating and power services, water source-based heat pump heating, biomass energy-based cogeneration, and hydrogen energy industry chain planning.

The company's clean coal-based high-efficiency cogeneration business in Shenyang has established a multi-dimensional clean and efficient energy service technology system around the goals of energy saving, consumption reduction and carbon reduction. As for the heating source, for example, the company boasts its industry-leading boiler combustion efficiency, which is realized upon the furnace design developed by the company independently for the coal type. The application of multiple patented technologies enables all the heating sources to meet the ultra-low emission standards, while the use of flue gas waste heat recovery technologies helps the recycling of discharged heat and continuously improves the energy efficiency at the heating source.

Its water source and heat pump-based heating business, also located in Shenyang, taking the advantage of the temperature difference between reclaimed water temperature and the outdoor temperature (in winter the former is higher, in summer the opposite), extracts the low-grade energy that could not be directly used from such water for heating and cooling the buildings. The total heating capacity of the related projects will exceed 120 MW, which can cut the use of standard coal by 13,000 t and the emission of carbon dioxide by 35,000 t every year.

Furthermore, the company's natural gas-based distributed cooling, heating and power services are quite suitable for scenarios such as the energy station for the National Exhibition and Convention Center (Shanghai); The company's biomass cogeneration business, based on the technology of "joint grate technology + high parameters and high speed of units + cogeneration + ultra-low emission of flue gas", could realize highly efficient and clean cogeneration of renewable energy and provide products such as electricity + steam + low grade waste heat.

For new heating business in the future, the company will prioritize and continuously increase the use of renewable and clean energy, and select the latest renewable energy technologies such as sewage source heat pump, air source heat pump, river water source heat pump, soil source heat pump, medium and deep geothermal energy that suits best to the local conditions, actively expand complementary and comprehensive energy service business based on multiple energy, combine electrification, renewable energy technology and traditional heating methods, prepare the development across the country based on the triple model of "self-building + acquisition + operation management" to extend its clean, efficient, safe, stable and comprehensive energy services to more regions.