CIMC Enric and Angang Steel's First Co-production of Hydrogen and LNG from Coke Oven Gas Project Successfully Commenced Operations Low-Carbon and Green Energy and Digitalisation Upgrade in Tandem

Developing New Quality Productive Forces 
CIMC Enric Supports the Steel Industry for High-Quality Development in Low-Carbon and Green Energy

SHENZHEN, China, Sept. 27, 2024 /PRNewswire/ -- CIMC Enric Holdings Limited and its subsidiaries (collectively, "CIMC Enric" or "Company") (stock code: 3899.HK) are pleased to release that the coke oven gas to hydrogen and LNG co-production project invested and constructed by Angang CIMC (Yingkou) New Energy Technology Co., Ltd. ("Angang CIMC"), has officially commenced operations, with a grand inauguration ceremony held in Bayuquan District, Liaoning. 

Angang CIMC is a joint venture established by CIMC Enric Investment Holdings (Shenzhen) Ltd. ("CIMC Enric (Shenzhen)"), a subsidiary of CIMC Enric and Angang Energy Technology Co., Ltd., a subsidiary of Angang Steel Company Limited ("Angang Steel"). This significant milestone marks substantial progress for both parties as they actively contribute to China's "dual carbon" strategy and drive the transformation of traditional industries. It represents a vital step forward in the steel industry's sustainable development, promoting deep integration of industrial advancement with low-carbon and green energy initiatives.

The steel industry, a pillar of the national economy, is a key sector of energy consumption and carbon dioxide emissions. As the world's largest steel producer and consumer, China's green development in the steel industry is imperative. Recently, the National Development and Reform Commission, alongside other departments, issued the "Special Action Plan for Energy Conservation and Carbon Reduction in the Steel Industry". The plan seeks to explore the sector's potential energy-saving and carbon reduction, targeting a reduction of approximately 53 million tons of carbon dioxide emissions by 2025 through energy-saving renovations and upgrades to energy-consuming equipment.

Ansteel Group Co., Ltd. ("Ansteel Group"), Angang Steel's parent company, has set to reduce its total carbon emissions by 30% from peak levels by 2035, positioning itself as one of China's first large steel enterprises to achieve carbon neutrality. Meanwhile, CIMC Enric, a leader in clean energy equipment manufacturing, has established a comprehensive portfolio spanning natural gas, hydrogen, and other clean energy sources. The strong partnership between CIMC Enric and Angang Steel aligns with global climate change responses and China's energy transition trends, under which the hydrogen and LNG co-production from coke oven gas project demonstrates the deepening cross-border cooperation between enterprises. It serves as a flagship project, building a complete "end-to-end" green industrial ecosystem that integrates resources, storage, transportation, and application, playing a crucial leading role in the green development of the steel industry.

At the resource end, the project produces high-purity hydrogen and LNG by separating and purifying coke oven gas—a byproduct of steel manufacturing. This process transforms waste into valuable resources, significantly enhancing added value while aligning with the principles of a circular economy. This project is expected to reduce carbon dioxide emissions by 470,000 tons, sulfur dioxide emissions by 174 tons, and nitrogen oxides by 1,344 tons annually. Based on Angang Steel's abundant coke oven gas resources, this project will produce 15,000 tons "blue hydrogen" annually, tailored to local conditions. Industry reports indicate that hydrogen production from coke oven gas can achieve over 88% carbon reductions compared to traditional natural gas-based methods, and over 95% compared to coal-based hydrogen production, respectively.

At the application end, the hydrogen produced can be used for hydrogen metallurgy and hydrogen fuel cell vehicles, while LNG serves as a cleaner alternative to diesel and industrial coal. This project will meet the clean energy demands of steel mills and surrounding customers, driving upgrades of energy storage and energy-consuming equipment, and hydrogen refuelling infrastructure. This interconnected clean energy innovation application chain will not only promote the development of the local hydrogen and LNG clean energy industry ecosystem but also further achieve energy conservation and carbon reduction.

To better realise a fully-integrated "end-to-end" industrial ecosystem for clean energy, this project was the first in the country to integrate digital intelligence technologies with energy production, storage, transportation, and sales scenarios, creating a comprehensive "end-to-end" ecological solution. By deploying state-of-the-art digital management systems, the project enhances productivity and efficiency. On one hand, automated processes allow for the completion of the production cycle, from raw material input to qualified product output, in just 16 days—substantially faster than the industry average. On the other hand, CIMC Enric's independently developed intelligent interconnected digital platform leverages next-gen digital technologies such as artificial intelligence, the Internet of Things, and cloud computing to integrate data from energy production, storage, transportation, and comprehensive energy services for customers, as well as carbon emissions data throughout the entire lifecycle. By combining situation awareness with model algorithms, the platform ensures operational safety. Additionally, it optimises cost reduction and efficiency by predicting downstream customer gas demand and adjusting upstream production plans in real-time, maximising benefits while enhancing energy usage and conservation efficiencies for steel mills and downstream customers. This initiative injects strong momentum into the digital transformation of the steel industry.

Mr. Wang Jun, Chairman of Anshan Iron and Steel Group Co., Ltd. and Angang Steel, stated, "As a Fortune Global 500 company, Ansteel Group is committed to its social responsibilities and the promotion of green manufacturing. The completion and launch of production for this project marks a significant milestone in our journey toward sustainable development. In the future, we will integrate capabilities across the entire natural gas and hydrogen value chain—from production to supply and sales. We will also implement the 'Ansteel Group Declaration on Carbon Peak and Carbon Neutrality' to continue fostering a green circular economy and build a robust ecosystem for regional clean energy supply and application."

Mr. Yang Xiaohu, Executive Director and President of CIMC Enric, stated, "The successful commissioning of the Angang CIMC project is a significant achievement in both parties' commitment to the national 'dual carbon' strategic goals. This project is also a key strategic demonstration for CIMC Enric's expansion of the clean energy upstream industry chain. Currently, our business model for the co-production of hydrogen and LNG from coke oven gas has been successfully replicated multiple times. In the future, we will continue to actively seek collaboration opportunities with large steel mills in China, supporting the green transformation and sustainable development of the steel industry, and promoting the large-scale application of the hydrogen industry to achieve both social and economic benefits."

source: CIMC