CIMC Enric and Maersk to collaborate on biomass green methanol project

SHENZHEN,China,March 15,2022 -- CIMC Enric Holdings Limited ("CIMC Enric",or "the Company") andits subsidiaries have announced a strategic partnership with global container shipping and logistics giant A.P. Moller - Maersk ("Maersk") to launch a biomass green methanol pilot project.

By taking advantage of the Company's key equipment and core process technologies,the project will facilitate the landing of Maersk's first generation of green container vessels.

The two sides have signed a Memorandum of Understanding (MOU) online to explore long-term cooperation in the clean energy field with a focus on green methanol.

According to the MOU,CIMC Enricwill assist the green methanol fuel transformation of Maersk container vessels through innovative and green technologies. Phase Iproject will comprise a strategic pilot project involving 50,000 tons of biomass green methanol. For the phase II project,the annual production capacityis expected to increase to 200,000 tons.

"At present,global green methanol is still in an early development stage. Against the background of 'dual carbon' goals,China's green methanol industry has huge prospects," said Yang Xiaohu,Executive Director and General Manager of CIMC Enric.

According to the Development Plan for Petrochemical and Chemical Industry (2016-2020) by the Ministry of Industry and Information Technology of China,the country's traditional methanol chemical market currently totals about 50 million tons per year with annual growth rate at about 8.8 percent.

"CIMC Enric supports the safer,more economical and wider application of clean energy through technological advances and product innovation. As an extension of the hydrogen industry chain,green methanol has good market prospects in these areas. Our partnership with Maersk marks a major breakthrough and milestone for our renewable clean energy endeavor through the first large-scale green methanol strategic pilot project," Yang said.

Jens Eskelund,China Chief Representative of A.P. Moller-Maersk,said achieving decarbonization goals is a strategic priority for Maersk. "Maersk has set an ambitious goal to achieve climate neutrality by 2040,while securing a large-scale supply of green methanol in the next decade is critical to our sustainable energy transition. Maersk is delighted to join hands with our strong Chinese partner CIMC Enric in our journey towards green and clean fuel transformation."

Methanol is a clean liquid fuel containing hydrogen and oxygen. Green methanol can be obtained in various ways including through biomass energy,green hydrogen & carbon capture,or renewable energy. Since green methanol can be produced cleanly,stored and transported conveniently,and offers high-energy density,it is recognized as one of thekey pathwaysto achieveglobal carbon neutrality.

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