Permanently discontinued! Huayi Group Withdraws from Methanol Project with Annual Output of 950,000 Tons

On September 13, Huayi Group issued the Notice on the Suspension of Production of Some Units of Subsidiaries.

The announcement said that according to the relevant requirements and document spirit of government departments on industrial adjustment and transformation in Wujing area and industrial carbon peak, the plant of Shanghai Nenghua Wujing Base, a wholly-owned subsidiary of Huayi Group, was permanently shut down .

According to Huayi Group, Shanghai Nenghua is a wholly-owned subsidiary of Huayi Group, which mainly produces methanol, acetic acid, hydrogen, syngas and other products. The shutdown unit is the unit in Wujing Base of Shanghai Neng Hua (the designed capacity of methanol is 950,000 tons, and the utilization rate of annual production capacity in 2024 is 46.5%; the designed capacity of acetic acid is 700,000 tons, and the utilization rate of annual production capacity in 2024 is 70.7%), and the unit was built earlier.

This shutdown is a measure to implement the government's requirements on industrial adjustment and transformation in Wujing area and industrial carbon peak, which is in line with the national "double carbon" strategic direction, and helps the company to further fulfill its social responsibility for green development and promote the company's green low-carbon transformation.

It is understood that the total assets of Shanghai Nenghua Wujing Base at the end of 2024 accounted for 7.9% of the company's latest audited assets, and the operating income in 2024 accounted for 5.9% of the company's consolidated statement. The net profit in 2024 was a loss of 122.352 million yuan .

It is noteworthy that while the methanol plant in Wujing Base is permanently shut down, Huayi Group has made a key breakthrough in the field of green methanol.

Recently, Huayi Group, together with Shenneng Group, Chengdu Investment Group and Shanghai Port Group, jointly promoted the 100000 tons green methanol project in Shanghai, and obtained the double certification certificates of raw material supply, methanol production and trade storage and transportation filling ISCC EU and PLUS. Compared with the carbon emission intensity 94gCO2eq/MJ of methanol prepared from fossil fuels, the average carbon reduction rate is more than 80%, which can meet the demand of green fuel filling for international shipping ships in Shanghai Port and effectively promote and support the construction of Shanghai International Shipping Center.

It is understood that the project is the first local green methanol production project in Shanghai, and is also the largest project in China to produce green methanol from biogas. The project will be completed and put into operation by the end of this year, and it is planned to complete the first filling of Shanghai Port's local green methanol before the Spring Festival of 2026.