CSSC Science & Technology secures major green methanol supply contract

CSSC Science & Technology Co., Ltd. has announced the signing of a green methanol sales contract with an undisclosed client, valued at approximately $40 million annually, with the potential to increase to $120 million per year based on client demand. The contract is for green methanol produced from the company's planned wind power-to-methanol project.

The agreement specifies a supply period of up to 12 years, commencing after the project's anticipated operational start in 2028. Payments under the contract will be made in US dollars or RMB. The contract's effectiveness is contingent upon approval by authorized decision-making bodies within four months of signing or a mutually agreed longer period.

The company anticipates that this contract will significantly boost its future operating performance upon project commissioning, strengthening its integrated "wind power + green fuel" value chain. CSSC Science & Technology highlighted risks, including the need for State-owned Assets Supervision and Administration Commission (SASAC) approval for the wind power-to-methanol project's investment and construction, potential delays affecting project timelines, and factors like customer demand, exchange rate fluctuations, and cost management that could impact profitability.