NF Energy scores $2 million lighting contract in China

Shenyang, China-based NF Energy Saving Corporation of America (OTCBB:NFES) has signed a $2 million contract to provide the Chinese province of Liaoning with energy-efficient electrical lighting.

The energy services company says it is the only commercial distributor of energy efficient lamps and bulbs in the province. The Liaoning province has targeted the replacement of 2.5 million bulb installations by the end of 2009, according to a news release.

The company said it expects to recognize $2 million in revenue this year from the $2.34 million contract.

Liaoning’s plan is aligned with the national government’s five-year plan to install 150 million high-efficiency lamps and bulbs, replacing incandescent and other low-efficiency lighting products. By installing low-energy lighting, the Chinese government expects to cut power consumption by 29 billion kilowatts, carbon dioxide emissions by 29 million tons, and sulfur dioxide emissions by 290,000 tons, according to NF Energy.

China's government has offered RMB 600 million ($87.8 million) in subsidies for energy-efficient lighting products, which are expected to put 120 million products in use (see Latest Chinese cleantech subsidy goes to lighting). 

A number of cleantech companies have been implementing energy efficient solutions in the Liaoning province including Hong Kong’s Solargiga Energy Holdings (HKG:0757), which recently announced plans to purchase a majority stake, or 78.9 percent, in Kinmac Solar for NT$973.28 million (US$29.9 million). The joint venture, to be called Jinzhou Jinmao Photovoltaic Technology in Jinzhou, Liaoning province, is expected to produce and sell photovoltaic modules along with designing and installing PV systems (see Solargiga takes majority stake in Kinmac Solar).

Researchers at Frost & Sullivan have indicated Liaoning is one of a number of provinces to benefit in ecological projects from China’s plan for RMB 4 trillion ($585 billion) in government spending in 2009 to stimulate the economy. Many of those projects are connected to water treatment (see China's stimulus package boosts water desal, recycling).

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