On 29 March 2026, China Carbon Neutral Development Group Limited (“China Carbon Neutral”; 01372) signed a strategic cooperation agreement with Shanxi Ligu New Energy Co., Ltd. The collaboration combines China Carbon Neutral’s capital, carbon-asset management and logistics capabilities with Shanxi Ligu New Energy’s proprietary technologies to establish an integrated value chain covering green-hydrogen production, safe storage and transportation, industrial decarbonisation and sustainable aviation fuel (SAF).
Key technology highlights of Shanxi Ligu New Energy • Toluene-Methylcyclohexane Liquid Organic Hydrogen Carrier (LOHC): near-100 % hydrogenation conversion, 99.87 % post-dehydrogenation purity, catalyst stability exceeding 8,000 hours at c. 90 % activity, enabling ambient-condition liquid transport via existing petrochemical infrastructure. • Aqueous Phase Reforming of Methanol (APRM): operates at 180-210 °C with ≥ 99.5 % methanol conversion, 99.99 % hydrogen purity and CO < 10 ppm; cuts energy use by > 40 % versus conventional methods. • Biomass glycerol steam reforming: delivers 99.2 % glycerol conversion, 99.99 % hydrogen purity and > 90 % carbon-emission reduction, producing green hydrogen at a lower cost than electrolysis. • Biomass-based SAF: furfural and HEFA routes achieve ≥ 88 % kerosene yield, meeting ASTM D7566, with emission-reduction rates above 80 % and c. 60-70 % respectively.
Co-operation scope 1. Green-hydrogen production: optimise APRM and biomass-glycerol processes, leveraging Shanxi Ligu’s 200 kg-per-day dehydrogenation pilot plant (already validated as internationally advanced) for scale-up and standardisation.
2. LOHC industrialisation: utilise China Carbon Neutral’s pipeline and logistics network to deploy toluene-methylcyclohexane technology, prioritising the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area, with potential applications in national hydrogen reserves and cross-border trade.
3. Industrial decarbonisation and green materials: integrate China Carbon Neutral’s CCUS solutions with Shanxi Ligu’s low-carbon technologies to deliver customised decarbonisation packages for chemicals, steel, refining and coking sectors, and to commercialise biomass-based FDCA and SAF across aviation, petrochemical, biomass-utilisation and municipal-waste scenarios.
Strategic relevance The partnership targets five impact areas: (i) supporting low-carbon transition of civil aviation via CORSIA-compliant SAF; (ii) enabling green upgrades for petrochemical refineries and furfural facilities; (iii) promoting circular use of agricultural biomass to bolster rural incomes; (iv) converting urban waste cooking oil into high-value fuels; and (v) building a closed-loop green-energy ecosystem spanning feedstock collection to end-use.
Board perspective China Carbon Neutral states that the alliance strengthens its positioning in green-hydrogen and decarbonisation markets, complements its existing capital and channel strengths, and is expected to open new revenue streams while advancing China’s “dual-carbon” goals.