ONA ENERGY PROVIDES UPDATE ON ITS
YONGXING POWER PLANT PROJECT IN THE HUNAN PROVINCE OF CHINA
Vancouver, British Columbia, July 4, 2008: ONA Energy Inc. ("the
Company") (CNQ: OEIX / Frankfurt: O3X) is pleased to announce that
repairs to the 110 kV transmission system connecting the Company’s Yongxing
power plant to the national Chinese power grid has been completed. The repair
process has taken longer to complete than expected, but the transmission system
is now ready to receive power generated from the plant.
The commissioning and test phase of the power plant is now underway.
Management at the Yongxing Power Plant Corporation (YPPC) has successfully
completed the testing of the boiler system, steam cleaning and blowing of the
steam piping and boiler components, and has connected the high pressure steam
to the turbine-generator. The next step in the test phase is have the 60 MW
turbine-generator generate electricity and undergo all the necessary trials and
tests (over-speed tests, short circuit tests and the 72 hours full load test,
etc.), required prior to commercial operation.
As of this morning, the connection between the power plant and the State
Grid of Chenzhou has been successfully synchronized. The generator was able to
generate electricity up to 40 MW for 3.5 hours (at 3000 RPM - 50 cycles).. It
was tripped in favour of the over-speed test (3300 RPM - 10% over-speed). The
generator was shut down for inspections and to allow for adjustments prior to
the power plant being put through the short-circuit tests and the 72 hour full
load tests, which are scheduled for July 4, 2008. It is anticipated that upon
completion of the successful 72 hour full load tests, the first 60 MW unit of
Yongxing power plant will be ready for commercial operation.
On June 20, 2008 the Chinese Government announced that it will increase the
electricity tariff 2.5 cent RMB per kilowatt-hour and will temporarily control
coal prices to the power plants, effective July 1, 2008. In addition, the Hunan
Provincial Government has agreed to put YPPC on equal status as the larger
power plants in the province. YPPC will now be entitled to receive the same
level of privileges as these larger power plants, which will include the
provincial subsidies on county and provincial taxes of up to 50 RMB per tonne
on coal purchased for the power plan.
The Yongxing Power Plant Corporation is ONA Energy’s 60%
owned Sino-Foreign joint venture company constructing an environmentally
friendly desulfurization power plant in the Yongxing County, Hunan province of
China. The power plant will be classified as a comprehensive utilization of
waste-to-energy power plant that will consume up to 75% of coal tailings (a
coal mining waste residue) as its main fuel. The power plant will also comply
with the latest NDRC guidelines of achieving very low NOx , SO2 and particulate
matter (fly-ash) emissions and produces clean energy.
ONA Energy Inc. (www.onaenergy.com) is a Canadian-based international energy company focused on the acquisition and development of power generation projects.
For information on Ona Energy Inc. please contact:
John F. Wong, P. Eng., President
Tel.: (604) 685-2542
Email: info@onaenergy.comon
Or visit our website at www.onaenergy.com
Except for historic information, the matters discussed in this document contain certain forward-looking statements. These statements involve known and unknown risks, delays, uncertainties and other factors not under the Corporation’s control that may cause actual results, levels of activity, performance or achievements to be materially different from the results, levels of activity, performance, achievements or expectations expressed or implied by these forward-looking statements.
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