Company Information for Tinci Holdings Limited

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Company Statement

Tinci is one of the leading specialist Flue Gas Desulphurisation (FGD) engineering companies in the People's Republic of China . Founded in October 2001 Tinci is primarily involved in developing, manufacturing and installing FGD systems for reducing sulphur dioxide (SO2) emissions from coal-fired power stations and large industrial boilers in China .

Tinci operates in the Guangdong Province where it has completed six FGD and water treatment projects since 2002 and a further two in other provinces. In 2005, it was awarded the contracts for two additional large FGD projects. We generated over ￡16 million revenues in the year ended 31 December 2005.

Operations and Technology

The SO2 Problem

Sulphur occurs widely as an impurity in coal, crude oil and many ores. SO2 is produced during industrial processes such as the combustion of coal and is one of the principal pollutants emitted by such activity. It is a hazard to human health and damages both natural and built environments. SO2 has been shown to cause respiratory illness and its presence in the environment causes acid rain that damages both vegetation and buildings.

Emissions of SO2 can be controlled by switching to a fuel or ore that has a lower sulphur content or by improving the efficiency of the industrial process so that less fuel is required. However, in many applications, the most efficient means of controlling SO2 emissions is to remove the SO2 from the flue gases before they are released to the atmosphere. Several differing FGD technologies have been developed to this end.

The FGD Processes

A variety of FGD processes are available; most use an alkali sorbent or reagent to recover the acidic sulphur compounds from the flue gas. The most widely used processes are the limestone gypsum process, which produces a saleable gypsum by-product, variants of the limestone process that produce a disposable sludge, and the spray dry process, which produces a mixed solid waste. Selection of the most appropriate FGD process for a particular application will depend on a variety of factors including the capacity of the generating unit, the required desulphurisation efficiency, facility space and water resource availability, sourcing of the reagent and on through-life cost.

The alkali used reacts with SO2 in the flue gas to produce a mixture of sulphite and sulphate salts. The reaction between the SO2 and the alkali can take place either in bulk solution (‘wet' FGD processes) or at the wetted or dry surface of the solid alkali (‘semi-dry' and ‘dry' FGD processes respectively).

In wet FGD processes, the alkali (usually as a solution or, more commonly, a slurry) and flue gas are contacted in a spray tower. The SO2 in the flue gas dissolves in the water to form a dilute solution of acid that then reacts with and is neutralised by the dissolved alkali. The calcium sulphite and sulphate salts produced precipitate out of solution.

In dry and semi-dry processes, the solid alkali sorbent is brought into contact with the flue gas, either by injecting or spraying the alkali into the gas stream or by passing the flue gas through a bed of alkali. In either case, the SO2 reacts directly with the solid to form the corresponding sulphite and sulphate. For this to be effective, the solid has to be quite porous and/or finely divided. In semi-dry systems, water is added to the flue gas to form a liquid film on the particles in which the SO2 dissolves, promoting the reaction with the solid.

Development of new services

The Group is researching processes for the elimination of nitrogen oxides from flue gases (DeNOx). The technology involved is similar to FGD and the Directors are confident that Tinci will be able to revise and adapt its existing FGD processes to exploit this market which they estimate could be worth RMB 95 billion (approximately ￡6.4 billion) between 2006 and 2020. Tinci has recently submitted tender documents for a 2 x 300 MW DeNOx project. DeNOx installations also require replacement of the catalyst approximately every three years, which gives the potential of a recurring income stream.

A further new product offering is the treatment of water from power and other large scale industrial plant. In 2005, Tinci commenced research and development on the chemicals and related service systems required for such treatment.

Tinci intends to use a proportion of the net placing proceeds to fund ongoing research and development for FGD and TFGD processes and research the treatment of effluent (both on the chemicals and service systems) and DeNOx process.

Company Address 30 St James's Square London, London, United Kingdom SW1Y 4JH Telephone: +44 (0)20 7321 5010 Email: tinci[at]sharedvalue.net Website: http://www.tinciholdings.com

Most Recent Statement

30/08/07 - TINCI WINS A NEW FGD TENDER IN SHANDONG PROVINCE
12/07/07 - RESULT OF ANNUAL GENERAL MEETING OF SHAREHOLDERS