DANISH DISTRICT HEATING SECTOR VISIT 3-6 DECEMBER 2014

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1 Invitation DANISH DISTRICT HEATING SECTOR VISIT CHINA 3-6 DECEMBER 2014 HEBEI PROVINCE AND BEIJING In cooperation with the Danish Embassy in Beijing, DBDH takes pleasure in inviting you to participate in a two-city joint export promotion tour to Beijing and Tangshan, Hebei province: Tangshan - Heating Seminar in cooperation with Tangshan Heating Company Denmark-Beijing District Heating Seminar in connection with the visit to Beijing of the Lord Mayor of Copenhagen, Mr. Frank Jensen and in cooperation with China District Heating Association (CDHA) and Beijing District Heating Group. Lars Gullev, Chairman of DBDH and Managing Director in VEKS will head the delegation.

2 The export promotion tour The focus of the export promotion tour will be on low temperature DHC networks, efficient DHC, excess heat utilization from industries and technologies to reduce pollution in the production of energy. In both cities, the program will include high-level seminars, b-2-b meetings and networking with selected high-level decision makers and site visits. This export promotion is coordinated with CDHA and is a part of the Agreement of Cooperation signed in June Chinese target participants include DHC companies, industries, iron steel plants, relevant heating planning departments and municipal government heating management office. Lars Gullev, Chairman of DBDH and Managing Director in VEKS will head the delegation and we expect the participation of the Lord Mayor of Copenhagen and the Danish Ambassador to China. Furthermore, HOFOR, Denmark s Export Credit Fund and the Danish Energy Authority will participate. WHY PARTICIPATE? IF YOUR COMPANY IS WELL ESTABLISHED IN CHINA High-level representatives from HQ will meet DH decision makers on a city level and directors of DH companies in China and thereby support the local sales organization. Furthermore, you will be able to exchange market intelligence with other established Danish companies. IF YOUR COMPANY IS NOT ESTABLISHED IN CHINA BUT HAS EXPORT SALES You will support your local sales agent and have an opportunity to meet new customers. Be inspired by Danish companies that have been established on the Chinese market for many years. IF YOUR COMPANY DOES NOT HAVE ANY SALES TO CHINA TODAY You will get a firsthand intensive one-week-introduction to the Chinese DH market and learn from Danish companies that already have export sales to China.

3 PRELIMINARY PROGRAM Wednesday, 3 December 2014 Arrival in Beijing Transport to Tangshan Evening: Dinner Wednesday evening with co-organizers Thursday, 4 December Tangshan Morning: Heating Seminar - Tangshan, Hebei province Topics: Excess heat utilization from industries Heating solutions as a way of energy saving Tangshan heating planning, status, strategy Renewable energy in heating supply Reduction of pollution in energy production Case studies Potential project discussion Target Participants: Tangshan city government officials, Tangshan city government in charge of heating Tangshan Heating Company Tangshan Iron and Steel Plant Afternoon: Site visit at Tangshan DH Company Discuss a specific project - replacing 150 smaller HOBs and replace it with DH capacity - updating of the old heating system and pipelines with age of 15 plus years - Tangshan Steel surplus heat project phase two. Evening: Travel to Beijing

4 THE PROGRAM (continued) Friday, 5 December Beijing Morning: Copenhagen-Beijing District Heating Seminar Topics: Signature of a Letter of Intent between Lord Mayor Frank Jensen and the Vice Mayor, Beijing on development of a demo project on Low Temperature DH network in Beijing with Danish technology and knowhow on behalf of DBDH and Beijing District Heating Group (BDHG) Chinese challenges and future development (Beijing and Hebei) Danish solutions in heating projects and reduction of pollution from production of heat Low Temperature DH network Renewable energy applied in district heating Case studies Target Participants Beijing Municipal Government Heating Management Office China District Heating Association Beijing Heating Association Heating companies in and around the larger Beijing area Heating companies from Hebei province Other relevant stakeholders Afternoon: Site visit heat pipe tunnel project owned by BDHG Evening: Reception for the Lord Mayor, Danish and Chinese guests hosted by the Danish Ambassador to China Mr. Friis Arne Pedersen at the Residence of the Royal Danish Embassy. Program Copenhagen - Beijing District Heating Seminar (preliminary) 09:00-09:05 Welcome by the moderator 09:05-09:15 Opening Speech, the Lord Mayor of Copenhagen, Mr. Frank Jensen, the City of Copenhagen 09:15-09:25 Opening Speech, representative from Beijing Municipal Government 09:25-09:30 Signature of a letter of intent between Lord Mayor Frank Jensen and Vice Mayor, Beijing on development of a demo project on Low Temperature DH network in Beijing with Danish technology and know-how. 09:30-09:45 Chinese Key note speech 1 09:45-10:00 Danish Key note speech, Lars Gullev, Chairman of DBDH and managing director VEKS, Denmark 10:00-10:30 Coffee Break 10: Chinese Key note speech :00 Danish solutions for new energy applied in district heating 13:00-14:00 Lunch (self-paid) 14:00-16:00 Visit to the Heat Pipe Tunnel owned by BDHG 18:00-18:30 Registration 18:30-20:00 Reception at the Residence of the Royal Danish Embassy (included, but maximum 2 participants pr. company) Saturday, 6 December 2014 Travel back to Denmark

5 Background According to the report produced by DBDH in 2013, on the Danish companies expectations for future development of their exports, China will in 2020 be one of the largest receiver of Danish district heating know how and technologies. The export to China is expected to increase from the current DKK 0.5 billion to DKK 1.6 billion in The Chinese use of energy is rising and has resulted in severe air pollution. This situation calls for environmental improvements and energy saving solutions. These topics are therefore, of top priority for the Chinese government, and as a direct consequence, hereof there is an ongoing effort to adapt to new district energy technologies. Tangshan Geographically, Hebei province surrounds Beijing and Tianjin and has a population of 72 million people. The Hebei province occupies 188,000 km2 - more than four times the size of Denmark. Hebei has an advanced industry within steel, petrochemical and equipment manufacturing. The steel industry is the largest in China and among those is the largest steel maker in China the Hebei Iron and Steel Group. The main energy source is coal that covers almost 90% of the energy production in Hebei province. The government of Hebei pays high attention to environmental protection and the top priority is to improve the air quality. To do this they have developed a Blue Sky strategy which is looking into different solutions for less pollution. Tangshan is located in the northeastern Hebei province and has a population of more than 7 million in the six core districts with 82 mio. m2 DH area. In the northern part of Hebei province, many Danish companies have had success. The city is quite active accepting new concepts to reduce the use of energy. Tangshan city is also one of the cities selected as pilot project of heat metering by Ministry of Housing and Urban-Rural Development (MOHURD). In Tangshan there are many interesting projects taking place the coming years: DH to increase by 3 mio. m2 in Key projects of updating old heating system and pipelines with age of 15 plus years. Key project of getting rid of 150 smaller HOBs and replace it with DH capacity. Tanggang Steel surplus heat project phase one project of less than 1 mio m2 started three years ago and almost completed. Tangshan Steel surplus heat recovery for DH phase two of 1.35 mio m2 is planning to start. In 2014 complete 4.8mio m2 area coal to gas retrofit. Beijing There is a solid foundation of cooperation between China and Denmark within the realm of district heating. In December 2014, the visit of the Lord Mayor of Copenhagen, Mr. Frank Jensen will further strengthen the mutual cooperation between Copenhagen and Beijing. With district heating as one of the focus area of his visit, this seminar will serve as an exceptional platform for governmental bodies, enterprises and institutions from both the Danish and Beijing side in exchange of knowledge and experiences within district heating. Beijing host the world largest DH Company Beijing District Heating Group (BDHG). They have requested DBDH and the Danish DHC companies to deliver a Low-Temperature-DH Network in outer part of Beijing, in an area with many individual boilers they want to transform to a DH network. A part of the conference will be to show Danish low-temperature-dh solutions and cases.

6 Travel Flights can be booked from approx. DKK incl. taxes depending on time of booking and choice of airline. Many flight opportunities are available. Arrival in Tangshan late Wednesday afternoon the 3 December and departure from Beijing Saturday morning the 6th December. Contact Suzanna Vazquez from BCD Travel at tel for booking. The Danish Embassy will arrange the transport to Tangshan according to the program, and they will arrange hotels in Beijing and Tangshan. The price level is approx. DKK 1,000/night for Standard Single room including breakfast. Prices DBDH has applied for co-financing from the Trade Council of Denmark, and provided support is granted, the price based on 10 participating companies will be (per company): Price for participation, standard fee: DKK 22,750 Price - DBDH focus group China member (10% discount): DKK 20,475 Price - SMV (50% discount): DKK 11,375 For your information, the term SMV is defined as a company which: 1) Have up to 100 employees, and 2) Have turnover up to 150 mio DKK The price includes all shared costs of the project including dinner at the ambassador s residence. Individual costs like travel, breakfast, lunch, dinners, accommodation, and roll ups are not included approx. DKK (depending on flight prices). Do you want to join? The registration form must be filled out and returned to the DBDH secretariat before 20th October Best regards Lars Hummelmose

7 Binding Registration Danish District Heating Sector Visit to China Hebei Province, 3-6 December 2014 Yes, our company will participate. The price is DKK 22,750 based on the participation of 10 companies and co-financing from Danish Export Council. DKK 20,475 for DBDH focus group China members and DKK 11,375 for SMVs. No, thank you, we will not participate Company (stamp): Contact: Return to DBDH before 20 October, 2014 DBDH Stæhr Johansens Vej Frederiksberg