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"A turning point has emerged in the field of power-related environmental protection; in the future, denitration technology will replace the currently dominant desulfurization technology, said Yang Yi, deputy general manager of China Power Investment Yuanda Environmental Protection Engineering Co., Ltd. (hereinafter referred to as “Yuanda”), to reporters recently. At the beginning of 2008, the flue gas denitration project for China’s first 1-million-unit power plant – the denitration project for the 1x1000MW coal-fired unit at Shanghai Waigaoqiao Third Power Generation Co., Ltd. (14.84,0.00,0.00%, Stock Bar) – was set to come online, marking the first step in Yuanda’s transition toward denitration technology. Yang Yi said that since the implementation of energy-saving and environmental protection policies, domestic desulfurization projects have helped to make up for a large part of the previous environmental debts. Denitration technology will become a new growth point for environmental protection companies in the power sector. He also predicted that by around 2010, **mandatory targets for denitrification would be introduced. The reporter learned that, driven by both market forces and policies, desulfurization technology has traditionally been a source of profit for the power industry’s environmental protection sector. It is understood that, from 2008 to 2010, over 230 million kilowatts of coal-fired power units in China will need to be equipped with desulfurization facilities; these units account for 38% of the total installed capacity of thermal power plants. This creates a desulfurization market worth more than 13 billion yuan per year on average. With space still available, why would Yuanda, a professional environmental protection company that started out by focusing on desulfurization technology, turn its attention to another less developed market in the field of denitrification technology? Yang Yi said that until last year, desulfurization projects were the driving force behind the company’s growth. Yuanda sees its output value, sales revenue, and total profits double every year, allowing it to maintain a position among the top three in the industry. However, with the completion of desulfurization facilities in power plants across the country, the effects of controlling sulfur dioxide have become evident. Now, nitrogen oxides have gradually become the primary acidic pollution gas. Although there is currently **no requirement for power plants to build dedicated denitration equipment, they are required to reserve space during construction for the future installation of such equipment. He believes that in a few years, regulatory requirements regarding denitration will surely be as strict as those for desulfurization. He explained that in addition to the Shanghai Waigaoqiao project, Yuanda is also working on the flue gas denitration project for the 2x660MW ultra-supercritical units at the Xinchang Power Plant in Jiangxi, with commissioning scheduled for December 2009. Currently, there are not many power environmental protection companies involved in denitration technology; aside from Yuanda, Dongfang Boiler Factory is also among the pioneers in this field. It is reported that Dongfang Boiler Factory has introduced a German KWH production line. Yang Yi said that in order to adapt to changes in the market, Yuanda has not only promoted its demonstration projects in Shanghai and Jiangxi but also begun to focus on introducing denitration technologies and building up a talent pool. He said that in denitration technology, catalysts are crucial; however, this technology has not yet been localized in China. The catalysts used in the Yuanda project in Waigaoqiao, Shanghai, are all imported from abroad. For this reason, Yuanda is in talks with the American company Corning regarding potential cooperation. The current alternative ways of cooperation are joint venture manufacturing and technology introduction. Yang Yi said that if a joint venture to build a factory is chosen, Farada will provide the funds while the American side will contribute the technology. Another option is for the U.S. side to transfer the license, with Farada being responsible for sales both domestically and internationally. In addition, Yuanda has also collaborated with the Danish company Flow Vision on research on denitration fluid simulation.