CAPITAL ENV (03989) has announced that its wholly-owned subsidiary, Shenzhen Qianhai Capital Environmental Investment Co., Ltd., plans to invest in the construction of a waste incineration heating and steam supply project in Yanjin County, Xinxiang City, Henan Province, with a total project investment of RMB254 million.

Qianhai Capital will establish a wholly-owned subsidiary, Yanjin County Capital Heating Co., Ltd. (name subject to final industrial and commercial registration), to handle the project's commissioned operation, with a registered capital estimated at RMB76.25 million. Located in the core manufacturing cluster of Xinxiang City, the project benefits from substantial steam demand in the industrial park, and cooperation intentions for steam supply have been reached with the operators of the municipal steam pipeline networks of Yanjin County Advanced Manufacturing Development Zone and Xinxiang Economic Development Zone.

The project has a 29-year operating period, with revenue primarily derived from steam supply fees and waste treatment service fees. Once completed, it will process 500 tonnes of waste per day and produce 250,000 tonnes of high-quality steam annually, effectively filling the regional steam supply gap.