Joined Hands with Linggang Steel to Replicate and Extend the Successful Business Model
(29 Dec 2023, Hong Kong) — CIMC Enric Holdings Limited and its subsidiaries (collectively, “CIMC Enric” or “Company”) (Hong Kong stock code: 3899.HK) are pleased to announce that Angang CIMC (Yingkou) New Energy Technology Co., Ltd. (“Angang CIMC”), a joint venture established by the Company and Angang Steel Company Ltd. (“Angang Steel”), has started construction of another project of hydrogen and LNG co-production from coke oven gas (“COG”) in Chaoyang City, Liaoning Province, China (the “Project”). The Project will use COG from the steel and coke integration project of Ling Yuan Iron & Steel Group Co., Ltd. (“Linggang Steel”) and is expected to be on stream by the end of 2024 with an annual output of 12,000 tons of hydrogen and co-production of 140,000 tons of LNG at full capacity. This will be CIMC Enric’s third project of the type following its cooperation with Angang Steel and Shougang Shuigang. The successful project model of effectively utilising industrial by-product gas to produce clean energy has been successfully replicated and promoted, marking yet another milestone in the layout of the Company’s upstream business and laying a solid foundation for the Company’s future development of the comprehensive and integrated business of hydrogen, LNG and other clean energy in the long term and in line with the trend of the global and national energy transition.
Previously, Angang CIMC carried out the first demonstration project of hydrogen and LNG co-production from COG in Yingkou City, Liaoning Province, which is expected to be put into production in the first half of 2024. The Angang CIMC project model has been successfully replicated, and significant improvements have been achieved in the speed of project implementation and commissioning, as well as in the project product mix.
Linggang Steel is a large-scale iron and steel enterprise and also the largest state-owned iron and steel enterprise in Chaoyang City, Liaoning Province. With the smooth implementation of the restructuring of Angang Steel and Linggang Steel this year, Angang Steel now holds 49% of the shares of Linggang Steel and is actively promoting the transformation and upgrading of the regional iron and steel industry and the high-quality and low-carbon development.
As an old industrial base, Liaoning Province's equipment manufacturing, petrochemical, and metallurgical industries hold an important position in the national industrial layout. With the requirement for optimisation and upgrading of the energy structure and the commissioning of the Dalian LNG receiving station, the region's natural gas consumption has significantly increased.
In this context, CIMC Enric carried out in-depth cooperation with Angang Steel, Linggang Steel and other leading local steel enterprises, combining the advantages of the steel enterprises in COG resources with the Company’s leading layout in the fields of intelligent manufacturing of clean energy equipment and integrated solutions. The strong alliance will promote the high value-added use of COG and the clean and low-carbon transformation of the industrial sector and advance the ecological development of local hydrogen energy, LNG and other industries. In addition, the Project also takes market demand into full consideration and optimises the product mix. The hydrogen product can be synthesised into liquid ammonia and sold to the market to achieve a flexible supply of high-purity hydrogen, liquid ammonia and LNG. Along with the steady progress of the national “Dual Carbon” goal, the business of hydrogen and LNG co-production from COG is also expected to bring incremental performance growth for the Company.
Mr. Yang Xiaohu, Executive Director and President of CIMC Enric, stated, “CIMC Enric focuses on high-quality resources in different regions and carries out clean/new energy operation and application businesses such as unconventional natural gas, to realize integrated services value add of closed-loop operation from the resource end to the application terminal. At present, the business model of hydrogen and LNG co-production from COG has been well developed. We have successfully landed several projects in the Northeast and Southwest regions and expect to realise mass supply of high-purity hydrogen and LNG from next year onwards. In the future, the Company will also actively seek cooperation opportunities with large domestic steel mills and coking plants, leveraging industrial synergies, and actively promoting the green and low-carbon energy transformation for traditional industries.”
