During the “12th Five-Year Plan†period, China’s environmental protection investment will reach 3.1 trillion yuan, and the compound annual growth rate will be 15%-20% in the next 5 years. The environmental protection output value is expected to reach 7%-8% of GDP by 2015, and the environmental protection industry will enter the fast Development period. Denitrification will be mandatory for inclusion in the “Twelfth Five-Year†environmental assessment system and will be carried out first in the power industry. After the thermal power enterprises added the experience of installing desulphurization facilities, the rate of desulfurization and price increase of 1.5 cents per kilowatt-hour on the basis of the current on-grid electricity price increases the enthusiasm of desulphurization of thermal power plants. In order to vigorously carry out denitrification in the field of thermal power, we believe that the introduction of a subsidy policy for thermal power and denitrification is imperative. The main ways to reduce the nitrogen oxide emissions from coal-fired power plants can be divided into low-nitrogen combustion technologies and flue gas denitrification technologies. In general, the treatment of sulfur dioxide and nitrogen oxides has been unavoidable. We believe that policies will also be frequent during the “Twelfth Five-Year Plan†period, and desulfurization and denitrification enterprises will face a higher degree of prosperity. Therefore, in 2011, the environmental protection industry was given a rating of “Outperformâ€, suggesting that it focus on Longjing Environmental Protection, Jiulong Electric Power and Longyuan Technology.