Environmental protection industry has great market potential

The status of the industry has been re-established: In the "12th Five-Year Plan" for the development of strategic emerging industries, the energy-saving and environmental protection industries, the new generation of information technology, and the biological and high-end equipment manufacturing industries are jointly regarded as the four pillar industries of the national economy in the next five years. At the same time, the energy conservation and environmental protection industry has been positioned as the top priority of the four pillar industries. Its position is “having the basis for the development of large-scale industrialization and clearly bringing it to the market.”

The objectives of the three sub-sectors are clear: In the “12th Five-Year Plan for Energy-saving and Environmental Protection Industry Development” report, the three major sub-sectors of environmental protection are clearly defined (sewage treatment, solid waste treatment, and waste gas treatment).

The target of the scale of key projects, of which only the newly-added sewage treatment daily treatment scale will reach 100 million tons. As of 2015, the daily treatment capacity of newly added sewage will reach 90 million tons, which is double the “Eleventh Five-Year Plan”; Others, such as the national scale of sewage treatment for upgrading and reconstruction, daily garbage disposal capacity, and urban sewage pipe network construction capacity, have also put forward specific targets. At the same time, in order to coordinate the implementation of the plan, the Ministry of Environmental Protection will also centralize the introduction of a series of pollutant emission control standards covering a total of 100 items in various industries. As a result, the embryonic shape of the trillion-level environmental protection industry's development road map for the next five years is becoming increasingly clear.

The market has great potential. Industry compound growth rate is high: Due to strong policy support, it is estimated that the market size of the “12th Five-Year Plan” environmental protection industry will exceed RMB 3 trillion, and the government’s expectation for the scale of industrial development investment in the next five years will reach 7,000. Com energy-saving billions of dollars, can be described as a huge market potential.

From the perspective of the sub-sectors of the three sub-sectors, first of all, sewage treatment, in order to meet the huge processing needs, the sewage treatment capacity needs to increase by 63% from 2011 to 2015, that is, to maintain a compound annual growth rate of 10%, while improving the quality of sewage treatment. Corresponding MBR technology and membrane technology are also concerned. The related industries are being driven, and the supply and demand gap in the wastewater treatment industry has huge investment opportunities.

Second, the three main methods for solid waste treatment and solid waste treatment are incineration, landfill and biomass. China's long-term large-scale use of landfill technology not only pollutes the environment, but also does not comply with China's national conditions. However, waste incineration is not only applicable to China's national conditions, but also can be turned into a treasure for power generation. As of 2011, China will have an installed capacity of 500,000 kW of waste-to-energy power generation, with a focus on areas with relatively developed economy and scarce land resources. According to the “China Urban Domestic Rubbish Industry Investment Analysis Report 2010” issued by China Solid Waste Network, the total proportion of China's garbage incineration treatment in energy conservation and environmental protection will increase from the current 3% to 5% to 20% to 30% in the next 10 years. The compound growth rate is about 6% to 10%, and the annual amount of investment in the waste-to-energy industry will reach 80 billion yuan. Although the proportion of waste-to-energy generated in China is very small at present, with the gradual promotion of energy-saving and environmental protection, as well as electricity price subsidies, waste treatment subsidies and tax return, and other sound policy incentives, the waste-to-energy power generation industry will develop rapidly in the future.

Finally, waste gas treatment and waste gas treatment are mainly nitrogen oxides, sulfur dioxide, and other polluting gases. They are mainly concentrated in high-energy-consuming industries such as thermal power and black metals. The new "Emission Standard of Air Pollution from Thermal Power Plants" has been revised and completed in June of this year. However, due to the delay in the pricing of out-of-stock subsidy electricity, the "12th Five-Year Plan" for the development of energy-saving and environmental protection industries has undoubtedly spurred The issuance of the "Emission Standard for Air Pollution from Thermal Power Plants" has a deterrent effect on the market that has opened and sold 300 billion yuan in advance, and the market for off-gas treatment has great potential.