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The demonstrative milk production plant is located in the heart of Yili Modern Intelligent Health Valley. The aim of the plant is to establish a global manufacturing benchmark in terms of scale, automation, technology, and carbon emissions. The project applies the most advanced technology in thermal energy recycling in aspects such as architectural design, energy circulation, production processes, and logistics storage. It can save 5,329 tons of standard coal annually and reduce carbon emissions by 41,895 tons. The daily energy savings are equivalent to the daily electricity usage of 930 households.

The wastewater treatment plant at the Weifang Yili Dairy Factory has an annual carbon emission of approximately 4,200 tonnes. In 2022, the factory achieved 'carbon neutrality' through various pollution and carbon reduction initiatives including biogas recycling, air blower replacement, sludge minimization, methane utilization, and distributed solar power generation, etc. These upgrades reduced approximately 4,284 tonnes of carbon emissions and saved RMB 640,000 in electricity costs and RMB 1,160,000 in steam costs, respectively.

In March 2023, Longyou Yili Dairy Factory successfully connected its 5.77 MW distributed photovoltaic power station to the grid.It is the largest distributed photovoltaic installation in China's dairy industry. The project includes an energy management platform, has integrated 20 energy management sub-systems, and has 554 monitored indicotors. Annually, the project reduces energy costs by more than 2 million RMB and reduced carbon emissions by 3,050 tons of CO?e.

Yili Yunnan Factory obtained a 'Green Electricity Certificate' in 2021, issued by the Kunming Power Exchange Center, for purchasing renewable energy from Yunnan Province. It is the first such certificate in China's dairy industry. In 2022, by purchasing renewable energy and China Certified Emission Reductions (CCER) credits, the Yili Yunnan Factory became the first Yili factory to achieve carbon neutrality.

Youran Dairy is a core raw milk supplier for Yili. In 2023, Yili launched a carbon reduction cooperation project with Youran Dairy. The project primarily includes the application of a liquid manure return system, promotion of liquid manure return practices, and the adoption of methane gas recovery and utilization technology. By replacing chemical nitrogen fertilizers with organic fertilizers, the project aims to reduce the usage of nitrogen fertilizers, improve soil quality, and decrease greenhouse gas emissions. As of 2023, Youran Dairy has initiated biogas projects at 9 farms, with 7 farms already in operation. Each farm can produce up to 5 million cubic meters of biogas annually, with an approximate annual electricity generation of 8 million kWh. Youran Dairy has also introduced an intelligent integrated manure treatment system at 15 farms, which is expected to reduce greenhouse gas emissions by about 90,000 tons annually.

Youran Dairy is a core raw milk supplier for Yili. Yili has continuously collaborated on constructing solar photovoltaic systems at farms with Youran. By the end of 2023, Youran has facilitated the introduction of photovoltaic projects at 9 of its farms. By installing photovoltaic panels on the roofs of cowsheds, Youran address 40% of the electricity needs for farm operations, achieve resource utilization, and reduce carbon emissions at the farms.