On September 3, 2024, China Tianying Inc. (CNTY) and COSCO SHIPPING Logistics & Supply Chain Management Co., Ltd. (COSCO SHIPPING Logistics) signed a strategic cooperation agreement at the CNTY headquarters in Hai'an. CNTY Party Secretary and CEO Cao Debiao and COSCO SHIPPING Logistics President Jiang Kai executed the agreement on behalf of their respective party. CNTY Chairman Yan Shengjun, Vice Presidents Yang Jing, Lu Ping, and Jing Xingdong, and COSCO SHIPPING Logistics Chairman Ji Haidong attended the signing event.
The two parties agreed on comprehensive cooperation in such fields as integrated energy project development, hydrogen-based product off-take, and green fuel storage, transportation, sales and refueling, to boost the decarbonization of global shipping and the achievement of China's dual-carbon goals. In particular, COSCO SHIPPING Logistics will provide guaranteed off-take of the 800,000 tons of green methanol products from CNTY's Liaoyuan Integrated Project.
As a core member of China COSCO SHIPPING Corporation Limited (COSCO SHIPPING Group), COSCO SHIPPING Logistics is a leading provider of international logistics, operating a fleet with the world's top combined capacity of 116 million DWT/1,417 ships. This makes it the largest consumer of marine fuels worldwide, exceeding 29.99 million tons. In recent years, COSCO SHIPPING Logistics has been pursuing the technical route of green methanol as alternative fuels, greatly expanding the demand for green methanol. On August 29, COSCO SHIPPING Holdings, a subsidiary of COSCO SHIPPING Logistics, announced orders of twelve 14,000 TEU container ships with methanol dual-fuel propulsion. Previously, COSCO SHIPPING Holdings also signed contracts for the conversion of eight ships to methanol dual-fuel propulsion. On August 30, the Hydrogen-Based Energy Center Supporting Terminal Project in Dalian, invested by COSCO SHIPPING Logistics which includes a 10,000-ton green methanol and other liquid chemicals terminal, a green ammonia and other liquefied hydrocarbons terminal, and supporting facilities, was formally kicked off. This Project will cover the storage, transportation, sales and refueling of green methanol and other marine fuels.
At the signing event, CNTY Chairman Yan Shengjun first expressed cordial welcome to the COSCO SHIPPING Logistics delegation. He highlighted the first-mover edge and scale effect CNTY has shaped in the energy sector by adhering to the green orientation, and the expectation that the two sides would take this agreement signing as a starting point to establish a strategic cooperation and communication mechanism, to facilitate information sharing and reciprocal complementarity in the context of decarbonization worldwide. The high-quality logistics services of COSCO SHIPPING Logistics will boost CNTY's current environmental businesses in overseas markets. On top of this, the two sides will work together to establish presence across the green methanol industry chain, from the transportation, storage, retransshipment to port refueling.
COSCO SHIPPING Logistics Chairman Ji Haidong appreciated the warm hospitality of CNTY. He affirmed the technological advantage and equipment manufacturing capability, featuring independent innovation, of CNTY as a pioneer, advocate and practitioner in the environmental protection and new energy sectors. Assuming high social responsibility for boosting the green and low carbon cause, CNTY has formed a considerable scale and flexible portfolio of green energy products. There is extensive room for cooperation between the two sides in areas such as green energy product off-take and transportation, global expansion of environmental businesses, industrial synergy, and talent training.
This cooperation is a solid manifestation of the recognition and popularity of CNTY's green methanol and other hydrogen-based products in the global shipping market. By joining hands with large international shipping companies, CNTY is committed to advancing the global application of green and clean energy, and facilitating the decarbonization transformation and high-quality development of the global shipping sector, so as to contribute to the sustainable development worldwide.
