Summary of contents: For a long time, the environmental treatment pattern of “heavy sewage treatment and light sludge treatment” is gradually being reversed. The market of sewage sludge treatment equipment has broad prospects. Wang Jialian, secretary-general of the China Environmental Protection Industry Association's Water Pollution Experts Committee, told the China Securities Journal that with the further development of the industry, it will also enrich and improve the policy support orientation of various sub-sectors in the future, such as bioreactive membrane technology in the field of sewage treatment. The main drawbacks at present are the excessively high costs and energy consumption, and the country’s emergence of new and more efficient technologies.

Sludge incineration has created large-scale industrial wastewater sludge, urban sewage sludge, tap water sludge, dredged sludge from rivers and lakes, and even sludge from oilfield operations. At the end of 2010, the Ministry of Environmental Protection issued the "Circular on Strengthening the Prevention and Control of Sewage Sludge Contamination in Urban Wastewater Treatment Plants", requiring that new, reconstructed and expanded sewage treatment plants should plan, construct and operate sludge treatment facilities at the same time; currently there is no sludge treatment The capacity of the sewage treatment plant should be completed within 2 years and the operation of sludge treatment facilities. The notice also proposed mandatory indicators that the sludge must be dehydrated to a moisture content below 50%. According to the “Twelfth Five-Year Plan for the preparation of major pollutants total control plan (draft)”, more attention will be paid to the safety of sludge treatment during the “Twelfth Five-Year Plan” period, and wastewater treatment at a scale of more than 100,000 tons per day will be required. All mills should carry out sludge harmless treatment. By 2015, the national sewage sludge treatment and disposal rate will reach 50%.

At present, sludge treatment methods mainly include land use, landfill, incineration, and sea drainage. Sludge incineration technology has the characteristics of “reduction, stabilization and harmlessness” and has gradually become the mainstream of sludge treatment. Sludge treatment core consumables are pre-treating flocculants and play a role in concentration and dewatering; the core equipment includes sludge dehydration agent, fluidized bed incinerator, biogas generator set, sludge dryer and so on. Listed companies for A-share related sludge treatment equipment include: Huaguang (600475), Zhongke General (300090), Xingyuan Filtration (300266), Tiantong (600330) and Combustion Control (300152).

The potential of membrane manufacturing companies is large. Similarly, there is great potential for growth in the market for wastewater treatment equipment. According to predictions from the Ministry of Environmental Protection's Environmental Planning Institute, the cumulative investment in China's sewage treatment will reach 1.06 trillion yuan in the next five years, of which the treatment of urban domestic sewage will reach 459 billion yuan, and the treatment of industrial sewage will reach 435.5 billion yuan.

MBR membrane technology is recognized as one of the most cutting-edge and efficient wastewater treatment and resource technologies in the world today, and it is well suited to the requirements of improving water pollution control and promoting water recycling in China. During the "12th Five-Year Plan" period, MBR technology has huge room for development. The clear water sources (300070), South Huitong (000920) and Xingrong Investment (000598) of the A-share listed companies are all engaged in the manufacture of MBR biofilms.

The Ministry of Environmental Protection, in its draft “12th Five-Year Plan for the Preparation of Total Pollutant Control Plan for Total Pollutants (Draft for Soliciting Opinions),” also proposed that during the “Twelfth Five-Year Plan” period, additional supporting pipelines should be built over 160,000 kilometers to make The average loading rate of sewage treatment facilities has increased to more than 80%. In August this year, the Ministry of Finance allocated a budget of 4.39 billion yuan in infrastructure budget for the central budget in 2011. It is earmarked for the construction of sewage and waste treatment facilities and sewage pipe network in 30 provinces (autonomous regions and municipalities) including Hebei, Zhejiang, Sichuan, and Qinghai. The project supports the improvement of environmental quality, ensures the safety of drinking water for the people, and promotes the coordinated and sustainable development of the economy and society. At present, listed companies involved in pipeline network construction in A shares include Nachuan (300198), Weixing Xincai (002372), Xinxing Duct (000778), Qinglong Pipe (002457), and Guotong (002205).

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