Tracking Green Hydrogen Projects: Foran Energy's 200,000 mt Green Methanol Project

On October 16, 2025, Foran Energy released an announcement proposing to advance the green methanol project through a capital increase, with key details as follows:

I. Capital Increase Plan

Foran Energy plans to inject an additional 310 million yuan into its wholly-owned subsidiary, Foran Technology. Following an equity acquisition, Flex Company (under Foran Energy) will proportionally increase its capital by 310 million yuan in the joint venture VENEX Company based on a 50% shareholding (Zhenhe Luyuan Company will simultaneously contribute capital at the same ratio). The funds will be used for the Foshan 200,000 mt/year green methanol project.

II. Foshan Green Methanol Project Details

Construction Site: Datang Chemical Park, Sanshui District, Foshan City, Guangdong Province

Capacity Plan: The project will be constructed in two phases, with a total planned capacity of 300,000 mt/year. The current first-phase investment is for 200,000 mt/year.

Investment and Returns: The total planned investment is approximately 2.058 billion yuan (including VAT). After reaching full production, the estimated average annual after-tax profit is about 270 million yuan, with a total investment yield of 18.64%, an internal rate of return on equity of 31.58%, and an after-tax investment payback period of 6.98 years (including a 2-year construction period).

III. Cooperation Background and Layout

Foran Energy and Hong Kong and China Gas Company Limited signed a cooperation agreement in November 2024, planning to invest 10 billion yuan to build a 1 million mt/year green fuel and chemical supply pool.

Through VENEX Company (each holding 50%), the two parties are deploying domestically: they have acquired Inner Mongolia Yigao Company (existing green methanol capacity of 50,000 mt/year, to be upgraded to 300,000 mt/year) and are constructing the Foshan project through Zhenwei Luyuan Technology Company.

IV. Project Significance

The project responds to the national energy strategy, seizes the early opportunity in the green methanol market, promotes carbon neutrality and the transformation of the energy and chemical industry, and is a key move in the company's overall green methanol plan.