On December 29, COSCO SHIPPING International (Hong Kong) (00517) announced that the company signed a cooperation agreement with h Jilin Electric Power and Shanggang Energy (the independent third parties) to establish a joint venture. The joint venture will serve as an investment platform focused on renewable fuels including green methanol.

According to the terms of the cooperation agreement, the registered capital of the joint venture will be Rmb1 billion, of which Jilin Electric Power, COSCO SHIPPING International (Hong Kong) and Shanggang Energy will contribute Rmb550 million, Rmb350 million and Rmb100 million respectively, accounting for 55%, 35% and 10% of the registered capital. Therefore, after the establishment of the joint venture, its equity will be held by 55%, 35% and 10% respectively by the three parties.

Shanghai JOYFuel Green Energy Co., Ltd. (subject to final approval of registration by Shanghai Municipal Administration for Market Regulation and/or State Administration for Market Regulation of the PRC). The joint venture focuses on renewable energy including green methanol. The investment platform for renewable fuels is the only project investment entity, technology research and development entity, purchaser of various equipment and services, and product sales entity for the green methanol cooperation business between the contracting parties under the cooperation agreement and is responsible for all aspects of production.

The announcement stated that the establishment of the joint venture is a strategic move by the Company to explore green and low-carbon emerging industry which facilitates the acceleration of the deployment of renewable marine fuels, and the promotion of energy transformation. It is consistent with the Company’s development strategies and is beneficial for the Company’s long-term business development. The JV Formation, which consolidated the resources and experience of Jilin Electric Power and Shanggang Energy, plays a constructive role in scaling technological innovation, strengthening the foundation of shipping services and improving capital usage efficiency, thereby enhancing the Company’s competitiveness.