As China relocates industries inland from its coastal cities, Chaohu City in Anhui Province is looking to attract environmentally friendly projects to boost economic growth.

On January 12, 2010, the State Council approved a plan to create the Wanjiang River Urban Belt as an industrial transfer zone covering nine cities along the Yangtze River in Anhui. Chaohu, located between provincial capital Hefei and Wuhu, two of the fastest growing cities in Anhui, is one of them.

Chaohu's Party chief Chen Qiang said the city is aiming to tempt industries from the Yangtze River Delta and the Pearl River Delta, and is targeting Fortune Global 500 companies and large state-owned enterprises as potential investors.

In the past year, Chaohu has attracted investments totaling 40 billion yuan (US$6.1 billion), mainly in high-tech projects such as new materials and new generation chemical engineering.

"Chemical engineering is one of our pillar industries, but it's basically small-size," Chen said, "In order to protect the environment, we are inviting new generation chemical engineering industries on one hand and eliminating smaller firms on the other."

Anhui Huayi Chemical, an affiliate of Chinese chemical giant Shanghai Huayi Group, is one such green industry that has moved to Chaohu, he said.

"It is the largest project transferred from Shanghai so far," Chen said. "With a total investment of 35 billion yuan (US$5.3 billion), it is expected to generate sales revenues of 50 billion yuan (US$7.6 billion) annually when fully operational."

"We investigated eight other places around China and eventually chose Chaohu because of its good transportation links, its proximity to Shanghai, and its rich coal resources," Hu Guowei, general manager of Anhui Huayi Chemical, told China.org.cn, "What's more, it provided us with a large area to build our plant."

According to Hu, the company is applying the most advanced environmental protection technology. Coal dust is conveyed through enclosed passages; ashes left over from coal burning are used to make bricks and other construction materials; and wastewater is purified for re-circulation.

This project is cooperating with two American companies – Praxair, a leading industrial gas provider based in Connecticut, and California-based McWong Environmental and Energy Group, he said.

"It is more than the transfer of an enterprise, Anhui Huiyi represents the transfer of an entire industrial chain," Hu said.

Other industries relocating to Chaohu cover a much wider field. On February 28, 2011, China Everbright Group signed an agreement on a biomass power project with the government of Hanshan County in Chaohu.

With a total investment of 320 million yuan (US$48.7 million), this new energy project will benefit local farmers, according to Chen Tao, general manager of Everbright Environmental Protection Technology Development (Beijing) Limited.

"When operational, the project will dispose of 300,000 tons of waste and generate 200 million kilowatt-hours of green power," Chen said. "That will reduce carbon dioxide emissions by 100,000 tons and bring in revenue of 80 million yuan (US$12.2 million) to farmers."

While incorporating these new industries, Chaohu is also focusing on upgrading and restructuring traditional local industries such as cable, cement and mining.

According to the Chaohu municipal government, the number of mines in the area was reduced from 405 to 170 in 2010. Ten ecological restoration projects were also carried out, covering an area of 600,000 square meters.