(Yicai Global) Sept. 9 -- China Tianying briefly rose by the exchange-imposed daily limit after the waste management company said it will participate in environmental projects worth CNY70 billion (USD10.1 billion) in northeastern China.

Tianying [SHE: 000035] closed 1.4 percent up at CNY6.50 (90 US cents) after jumping 10 percent to CNY7.05 intraday.

The operator of waste incinerators, a municipal government of Tongliao in the Inner Mongolia Autonomous Region, as well as the Investment Association of China, will team on projects in Tongliao, the Jiangsu province-based company said in a statement yesterday. More detailed contracts will be signed later to decide on the timetable and the shareholding ratios.

The group will build a CNY60 billion zero-carbon industrial park and an industrial equipment manufacturing center worth CNY10 billion. 

The park will generate six gigawatts of wind power and four GW of solar power per year. Moreover, the group will build a two-gigawatt hour capacity of gravity energy storage, a way to store renewable energy by dropping heavy objects from great heights. The park will also produce 50,000 tons of green hydrogen and 300,000 tons of green ammonia each year.  

The manufacturing center should make equipment used in environmental projects involving gravity storage, ammonia, hydrogen, and biomass power generation.

Moreover, the three parties intend to jointly initiate an investment fund, focusing on zero-carbon projects. The first phase of the fund is set to be CNY2 billion (USD288.9 million). 

Tianying began expanding into the field of renewable energy storage early this year, soon after selling its 100-percent stake in Urbaser, a European waste treatment company, in the second half of last year. The move significantly reduced the Chinese company's asset-liability ratio but also reduced the scale of its business.

Despite several new investment plans, the firm's revenue dropped in the first half. In the six months, net profit fell 64 percent to CNY124 million (USD17.9 million) from a year ago. Revenue declined by 78 percent to CNY2.5 billion.

Editor: Emmi Laine, Xiao Yi