Replication of CIMC Angang project model
Further build-up of LNG & Hydrogen production capacity
(28 Nov 2023, Hong Kong) — CIMC Enric Holdings Limited and its subsidiaries (collectively, “CIMC Enric” or “Company”) (Hong Kong stock code: 3899.HK) were pleased to announce that the Company had formally signed a contract with Shougang Shuicheng Iron and Steel (Group) Co. Ltd. (“Shougang Shuigang”), a subsidiary of Shougang Group Co. Ltd. (“Shougang Steel Group”), for the establishment of a joint venture to co-operate in the construction of the “CIMC Shuigang Coke Oven Gas to LNG Co-production of Hydrogen Project” (“Coke Oven Gas to Hydrogen Project” or “the Project”). This time, CIMC Enric and Shougang Shuigang have joined hands to actively respond to the national “Dual Carbon Emission Reduction” policy and promote the integration strategy of “Coal-Coke-Steel-Chemical”, making a solid step forward to promote the clean, low carbon and highly efficient utilisation of energy, facilitating the transformation of industry into a cleaner and lower carbon environment, and realising high-quality development. This is another breakthrough in the upstream sector for CIMC Enric, following its co-operation with Angang Steel in the coke oven gas to liquefied natural gas (“LNG”) co-production of hydrogen project.
CIMC Enric and Shougang ShugangShuigang will set up a joint venture to invest in the project in Liupanshui City, Guizhou Province. CIMC Enric will invest a capital amount of RMB205 million for an 82% stake. The Project has a designed scale of about 160,000 tons of LNG/year and an annual hydrogen production capacity of 24 million Nm³. It is expected that the Project will be put into production by year 2025. The Project will be a pilot project to deepen the transformation of industrial structure and products under the national “Dual Carbon" strategy, also for CIMC Enric to enter the upstream of the clean energy industry value chain in Southwest China, and to extend the end-to-end solutions of resources + storage + application, which is of great significance for the Company to enrich the product variety and layout of the development plan for the ecological chain of the clean energy industry.
With the increase in environmental protection requirements in recent years, new opportunities have been brought to the high value-added use of coke oven gas. Coke oven gas is a by-product of the coke production process, of which the main components are hydrogen (55%~60%) and methane (23%~27%). By separating, synthesising or purifying coke oven gas, it can produce natural gas with a methane content of up to 98% and hydrogen with a purity of 99.99%~99.9999%. The hydrogen produced in this method is basically free of impurities, which can fully meet the requirements of hydrogen fuel cells, and can provide energy for hydrogen fuel cell vehicles, which has a great potential for promotion.
The Executive Director and President of CIMC Enric, Mr. Yang Xiaohu, stated, “Coke oven gas to hydrogen is one of the important development strategies for CIMC Enric to develop the new clean energy integrated service business. CIMC Enric has successful business cooperation cases as well as mature process technologies and application capabilities in the high value-added utilisation of coke oven gas. The joint venture cooperation between CIMC Enric and Shougang Shuigang in the project of high value-added use of coke oven gas is not only a further development and deepening of the close cooperation between both parties in the iron and steel industry chain, but also a powerful practice for both parties to broaden the field of industrial cooperation and promote the development of green economy in China. This cooperation is in line with the strategic development planning of CIMC Enric and Shougang Shuigang, and the implementation of the project will make the layout of the clean energy industry ecological chain of both parties more complete. CIMC Enric will be committed to using clean energy to help the sustainable development of society and giving back to the natural environment with the wisdom of development!”
